Procedures for issuing red books to investors implementing commercial projects

Procedures for issuing red books to investors implementing commercial projects is an important step to establish legal and long-term land use rights for the land where the project will be implemented. Being granted a Land Use Rights Certificate helps investors feel secure in implementing the project according to planning, facilitates capital mobilization, mortgage, transfer and related transactions, while enhancing the legal and commercial value of the project.

Cases where red books are not issued according to current regulations

The Land Law 2024 clearly stipulates cases in which land use rights certificates are not granted. According to the provisions of Clause 1, Article 151 of the Land Law 2024, cases in which land use rights certificates are not granted include:

1. Agricultural land is used for public purposes.
2. Land allocated for management in the cases specified in Article 7 of the Land Law 2024 includes:

• Public works and corridors to protect the safety of works;
• Land with river water surface and specialized water surface;
• The land fund has been recovered according to the decision of the competent authority;
• Land for investment projects;
• Land used for public purposes is assigned for management; Unallocated and unleased land in localities;
• Unused land on islands that have not been assigned to administrative units for management;
• Land is allocated to the residential community to manage.

However, in the above cases where land is allocated for common use or management, a Certificate will still be issued for the land area used according to the land allocation or lease decision of the competent authority.

In addition, Clause 1, Article 151 of the Land Law 2024 also stipulates that red books will not be issued in the following cases:

• Land rented or subleased from land users. However, in case of renting or subleasing land from the investor with infrastructure suitable for the investment project approved by the competent authority, the Certificate will still be issued;
• Contracted land. However, contracted land is still recognized as land use rights if it is land used for agricultural and forestry purposes originating from land allocated, contracted, outright contracted, leased, or borrowed from agricultural and forestry enterprises before February 1, 2015 in the form of land allocation but without collecting use fees for the area being used and not exceeding the limit of agricultural land allocation to individuals (point a, clause 2, Article 181 of the Land Law 2024);
• Land that has had a recovery decision from a competent authority, except in cases where it has been more than 3 years since the recovery decision was issued but no implementation has been made;
• Land is being disputed, distrained or other measures are being applied to ensure judgment enforcement or land use rights are being subject to temporary emergency measures according to regulations;
• Organizations that are allocated land by the State without collecting land use fees to build public works for non-business purposes.

Thus, if you fall into one of the above cases, you will not be issued a Certificate of land use rights and ownership of assets attached to land (“Red Book”).

Can investors implementing commercial projects be issued red books?

Pursuant to Clause 2, Article 119 of the Land Law 2024, economic organizations will be allocated land by the State with land use fees collected to implement commercial housing construction investment projects. According to Clause 33, Article 3 of the Land Law 2024, the State allocates land use rights (hereinafter referred to as State land allocation) when a competent State agency issues a decision to allocate land to an entity in need of land use.

Furthermore, pursuant to Clause 4, Article 9 of the Law on Housing 2023, it is stipulated that: “For housing invested in and constructed under a project for sale or lease-purchase, the Certificate shall not be granted to the investor of the housing construction investment project but to the buyer or lessee of the housing, except in cases where the investor of the housing construction investment project needs to be granted a Certificate for housing that has not been sold or leased; in cases where the investor of the housing construction investment project is for lease, a Certificate shall be granted for that housing.”

Based on the above regulations, it can be seen that investors implementing commercial projects are granted red books in the following cases:

• For unsold, unrented and purchased housing areas in the project;
• For housing invested in and built for rent;
• For commercial and service projects owned by the investor;
• For land and assets attached to land, financial and other legal obligations have been fulfilled as prescribed.

Therefore, when the investor implements a commercial project that meets the above conditions and does not fall into the case of not being granted a red certificate as analyzed above, the State will grant a red certificate to implement the commercial project.

Procedures for issuing red books to investors implementing commercial projects

To be granted a red book to implement a commercial project, the investor must prepare the necessary documents and follow the following processes and procedures:

File

Pursuant to Clause 1, Article 41 of Decree 101/2024/ND-CP, the investor requesting to register for a red book for a real estate project is responsible for submitting 01 set of documents to the application receiving agency specified in Clause 1, Article 21 of Decree 101/2024/ND-CP. In case the agency receiving the dossier is specified in Point a, Clause 1, Article 21 of Decree 101/2024/ND-CP, it will transfer the dossier to the Land Registration Office.

Dossier to request for issuing red books to investors implementing commercial projects includes:

• Document from the competent authority in charge of housing and construction work certifying that the house, construction work, and construction work items are eligible to be put into use according to the provisions of law on construction;
• Document from the agency competent to manage real estate business conforming land use rights and assets attached to land are eligible to be put into business according to the provisions of law on real estate business;
• Application for registration of changes in land and assets attached to land according to Form No. 11/DK issued with Decree 101/2024/ND-CP;
• Contract for transfer of land use rights, ownership of houses, construction works, and construction items according to the provisions of law (if any);
• Minutes of handover of houses, land, construction works, construction items (if any);
• Certificate issued to the project investor (if any);
• Documents proving the completion of financial obligations in cases where the Land Registration Office receives a document from a competent authority about the project’s detailed construction planning being adjusted, giving rise to financial obligations according to the provisions of law.

Thus, investors need to prepare all the above papers and documents to apply for a red book for commercial projects. Preparing complete and accurate documents helps the Certificate issuance process go smoothly, ensuring legal rights for investors.

>>>CLICK DOWNLOAD NOW: APPLICATION FOR REGISTRATION OF LAND CHANGES AND LAND-ATTACHED ASSETS 2025.

Procedure

Following the correct order and procedures helps ensure the legality of the issued Certificate, avoiding future legal risks. The process of implementing procedures for issuing red books to investors implementing commercial projects includes the following steps:

Step 1: Prepare and submit application

The investor prepares all documents as prescribed in Clause 1, Article 41 of Decree 101/2024/ND-CP and submits documents to the receiving agency as prescribed in Clause 1, Article 21 of Decree 101/2024/ND-CP, specifically:

• One-Stop Department according to regulations of the Provincial People’s Committee;
• Land registration office;
• Land Registration Office Branch.

Step 2: Receive and transfer documents

• The agency receiving the dossier checks the completeness and validity of the dossier. If the application is not complete and valid, instruct the applicant to supplement and complete it.
• The receiving agency transfers the documents to the Land Registration Office.

Step 3: Appraisal of documents

• The Land Registration Office checks and appraises documents;
• Field verification if necessary;
• Extract cadastral measurement of the land plot or check the cadastral measurement extract of the land plot submitted by the Certificate applicant (if necessary);
• Check conditions for issuance of Certificate.

Step 4: Determine financial obligations

• The land registration office sends an information transfer form to determine financial obligations to the tax authority (if any);
• The applicant for the Certificate shall fulfill financial obligations as notified by the tax authority.

Step 5: Issue Certificate

• The Land Registration Office issues the Certificate;
• Update and adjust cadastral records and land database.

Above are the basic steps to carry out procedures for issuing red books for commercial projects of investors. Investors need to pay attention to following the correct process so that the issuance of red books can take place as quickly and smoothly as possible.

Consulting services for issuing red books to investors implementing commercial projects at Long Phan Consulting Company

Consulting services for issuing red books to investors implementing commercial projects at Long Phan Consulting Company provide comprehensive solutions. Long Phan Consulting Company provides the following services for investors implementing commercial projects:

• Consulting on conditions for issuing red books according to current legal regulations;
• Evaluate the project’s ability to meet the conditions for issuance of red books;
• Identify legal risks and propose solutions;
• Review and collect documents and draft relevant documents and applications;
• Authorized representative submits documents, monitors the processing process, receives results, and hands over to the investor;
• Support in resolving problems that arise during the implementation of procedures (if any).

With a team of experienced experts in the field of real estate, Long Phan Consulting Company is committed to providing professional and effective consulting services, helping investors implementing commercial projects complete procedures for issuing red books quickly and in accordance with the law.

Some frequently asked questions about issuing red books to investors implementing commercial projects

Below, we would like to provide some common questions that you may be interested in about issuing red books to investors implementing commercial projects. Please refer!

Which agency has the authority to issue red books for commercial projects?

The authority to issue Certificates of land use rights, ownership of houses and other assets attached to land to commercial project investors usually belongs to the People’s Committee of the province or centrally run city where the land is located.

What is the average time to complete the red book issuance procedure?

The time to carry out the procedure for issuing a red book can vary depending on the locality and the complexity of the application, but usually lasts several months from the date of submitting all valid documents.

What are the costs and fees involved in issuing a red book for a commercial project?

Costs may include cadastral fees, land use fees (if any), dossier appraisal fees and other incurred costs as prescribed by law.

What difficulties may investors encounter during the process of applying for a red book?

Common difficulties include incomplete or erroneous legal documents, problems in planning or site clearance compensation, and delayed coordination between authorities.

What are the legal consequences if the investor does not have a red book for a commercial project?

Not having a red book can lead to the project not being eligible for business, being subject to administrative sanctions, or even having operations suspended or the project revoked.

Are the procedures for issuing red books different for different types of commercial projects?

Essentially, the process is similar, but there may be specific documentation or condition requirements depending on the type and scale of the commercial project.

We hope that the above answers have answered your questions surrounding the issue of issuing red books to implement commercial projects.

Conclude

Procedures for issuing red books to investors implementing commercial projects require a deep understanding of land laws and strict compliance with procedures. Long Phan Consulting Company is ready to provide comprehensive support from legal advice to authorized representatives to carry out procedures, helping the process of issuing red books go smoothly. Please contact us immediately via the hotline 0906735386 to receive timely support from a team of experts.