Selling assets on annual leased land: How to do it?

Selling assets on annual leased land is a popular form of transaction in the real estate sector, bringing profitable opportunities to both sellers and buyers. This allows the property owner to maximize the value of the property while still maintaining the right to use the leased land. The article below will guide you through selling assets on annual leased land. Please refer!

Conditions for selling assets on annual leased land

According to Article 46 of the Land Law 2024, the sale of assets attached to land leased by the State for annual rent must meet the following specific conditions:

1. Economic organizations, individuals, people of Vietnamese origin residing abroad, and economic organizations with foreign investment capital may sell assets attached to land leased by the State with annual land rental payment when the following conditions are met:

• Assets attached to leased land are legally created and registered according to the provisions of law;
• The construction has been completed in accordance with the detailed construction planning and the investment project has been approved (if any), except in cases where it must be carried out according to an effective court judgment or decision, an enforcement decision of a civil judgment enforcement agency or a conclusion of a competent state agency on inspection and examination.

2. Economic organizations, individuals, people of Vietnamese origin residing abroad, economic organizations with foreign investment capital that are leased land by the State with annual land rent payment may sell assets attached to land and lease rights in the lease contract when the following conditions are met:

• Conditions in section 1.
• Compensation, support, and resettlement money has been advanced but has not been fully deducted from the land rent payable.

3. People who buy assets attached to land or purchase assets attached to land and lease rights in a land lease contract can continue to use the land for the right purpose during the remaining land use term, continue to deduct money advanced but not yet deducted, and must carry out land registration procedures according to the provisions of the Land Law 2024.
4. In case of selling assets attached to land that are construction works that meet the conditions for separating the plot, the plot will be divided to issue a Certificate of land use rights and ownership of assets attached to the land.
5. In case the State leases land with annual land rental payment to carry out infrastructure construction and business projects, you may sell assets attached to the land when meeting the conditions specified in Clause 1, Article 45 of the Land Law 2024 and other conditions according to the provisions of the Law on Real Estate Business.

Thus, only when all of the above conditions are met will the land owner have the right to sell assets attached to the land to other organizations and individuals. The sale of land assets must comply with legal processes and procedures.

Procedures for selling assets on annual leased land at the provincial level

We provide 02 important issues in the process of selling assets on annual leased land at the provincial level:

File

Procedures for selling assets on annual leased land at the provincial level require people to fully prepare change registration documents according to the provisions of Point q, Clause 1, Article 133 of the Land Law 2024. Basic application components include:

• Application for registration of changes in land and assets attached to land according to Form No. 11/DK issued with Decree No. 101/2024/ND-CP dated July 29, 2024. The applicant needs to fill in all information according to the instructions in this form;
• In addition, the application must contain an issued Certificate to prove the seller’s current legal land use rights;
• Contracts or documents on the purchase, sale, and capital contribution of assets attached to land according to the provisions of civil law are also mandatory components in the file;
• In case the procedure is carried out through a representative, a document on representation is required according to the provisions of civil law.

When submitting documents, the person requesting registration can choose one of the following methods:

• Submit copies of documents and present the originals for the officer receiving the documents to check and compare;
• Submit original documents;
• Or submit copies of documents that have been notarized or authenticated according to the provisions of law on notarization and authentication.
• In case of submitting documents on the National Public Service Portal or Provincial Public Service Portal, the submitted documents must be digitized from the original or a copy of the document that has been notarized or authenticated according to the provisions of law.

Thus, completing the documents properly will help the procedure process go smoothly. Necessary documents must be carefully prepared and ensure legality.

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Procedure

Procedures for selling assets on annual leased land are carried out in a clear order with the participation of many authorities. Complying with the correct steps will help shorten the time to resolve administrative procedures.

Step 1: The person requesting registration submits 01 set of documents to the application receiving agency:

Individuals, communities, people of Vietnamese origin residing abroad submit applications at the One-Stop Department according to regulations of the Provincial People’s Committee or Land Registration Office or Land Registration Office Branch.

Domestic organizations, religious organizations, foreign organizations with diplomatic functions, economic organizations with foreign investment capital submit applications at the One-Stop Department according to regulations of the Provincial People’s Committee or Land Registration Office.

Step 2: After receiving the dossier, the authorities will check the completeness of the dossier components, the consistency of information content between documents, and the completeness of the declared content.

If the application meets the requirements, the receiving agency will issue a Certificate of Application Receipt and an appointment to return the results.

In case the dossier is not within the receiving authority or does not meet the requirements, the receiving agency will not receive and return the dossier to the person requesting registration.

Step 3: The land registration office will check the conditions for exercising rights according to the provisions of the Land Law:

The agency with the land management function determines the land price and signs a land lease contract with the buyer without having to re-issue the land lease decision. After that, the Land Registration Office sends an Information Transfer Form to determine financial obligations related to land to the tax authority.

Step 4: The land registration office revises and updates changes in the cadastral records, land database and issues a new Certificate or confirms changes on the issued Certificate.

Above is the basic process of selling assets on annual leased land according to the latest regulations.

Some things to note when selling assets on annual leased land

When selling assets on annual leased land, the parties need to pay attention to a number of important points to ensure compliance with the law and protect rights. Specifically:

• First of all, the person who buys assets attached to land or purchases assets attached to land and rental rights in a land lease contract can continue to use the land for the right purpose during the remaining land use term;
• The buyer can also continue to deduct the advance payment that has not been fully deducted and must carry out land registration procedures according to the provisions of the Land Law 2024;
• In the case of selling assets attached to land that are construction works that meet the conditions for dividing the plot, the buyer can separate the plot to issue a Certificate of land use rights and ownership of assets attached to the land;
• In case the land user or owner of assets attached to the land does not continue to carry out the procedure in the process of resolving the procedure, the person with related rights and obligations according to the provisions of civil law can submit documents proving to continue carrying out the procedure. If the person who continues to carry out the procedure has not been identified or the person who continues to carry out the procedure is not subject to being granted a Certificate, the Land Registration Office is responsible for updating the Cadastral Book;
• Particularly noteworthy, during the process of resolving administrative procedures, if the dossier-receiving agency receives documents related to disputes or land-related complaints under the Court’s jurisdiction under the provisions of Clause 2, Article 19 of Decree No. 101/2024/ND-CP, the authorities will stop processing procedures for registering land and assets attached to land and return the dossiers to the person requesting registration;
• For the cases specified in Points b, c, d, đ, e and g, Clause 2, Article 19 of Decree No. 101/2024/ND-CP, when the resolution period expires or a document from the competent authority is received stating that the land dispute has been resolved, the receiving agency will continue to carry out land registration.

The subject selling the asset and the subject receiving the asset need to pay attention to some of the above issues so that the asset selling process can go as smoothly as possible.

Full package consulting service on procedures for selling assets on annual leased land at Long Phan Consulting Company

Long Phan Consulting Company provides comprehensive consulting services on procedures for selling assets on annual leased land. With a team of experienced experts in the land field, customers will be supported from document preparation to completion of procedures. Long Phan’s consulting services include:

• Drafting land change registration applications, preparing necessary documents;
• Support customers to check the validity of related documents;
• Consulting on drafting contracts to buy and sell assets attached to annual leased land in compliance with civil law regulations, ensuring the rights of the parties involved in the transaction;
• Support the application submission process at the receiving agency and monitor the progress of handling procedures;
• Support in fulfilling financial obligations and receiving results;
• In-depth consultation throughout the property sale process.

With a team of experienced experts, we bring the best service to you.

Some frequently asked questions about selling assets on annual leased land

We would like to provide you with some common questions about procedures for selling assets on annual leased land from the State. Please refer!

Will buyers of property on annual leased land be granted a Land Use Rights Certificate?

In case the property attached to the land is a construction project and meets the conditions to separate the plot, the buyer will be given a Certificate of land use rights and ownership of the property attached to the land.

What should I do if I’m in the process of selling and the seller doesn’t want to sell anymore?

If the land user or owner of assets attached to the land does not continue to carry out the procedure, the person with related rights and obligations can submit proof of documentation to continue carrying out the procedure. If no one continues or that person is not eligible for a Certificate, the Land Registration Office will update the Cadastral Book.

In what cases will the authorities stop handling asset sale procedures?

If the dossier-receiving agency receives a document related to a land dispute or claim under the Court’s jurisdiction, the procedure will be stopped and the dossier will be returned.

How long does it take to carry out procedures to sell assets on leased land each year?

The time to carry out this procedure depends on each specific case and the regulations of each locality.

Does the buyer of property on leased land have to pay back the land rent every year?

The buyer will continue to use the land for the prescribed purpose during the remaining land use term.

Above are some frequently asked questions about selling assets on annual leased land that you may be interested in.

Conclude

It can be seen that selling assets on annual leased land is a legal procedure with many steps, requiring a deep understanding of land law. If you have any questions related to the process of selling assets on annual leased land, please contact Long Phan Consulting Company immediately at hotline 0906735386 for detailed advice and full procedural support.