Who is compensated for remaining land investment costs when the state recovers land?

Article overview

Compensation for remaining land investment costs when the State recovers land, is a legitimate right of land users according to the provisions of the Land Law 2024. This process ensures the rights of people when their land is recovered, including the costs of site clearance, land improvement and other investments. Please follow Long Phan’s article to understand the latest regulations on how to accurately determine compensation in accordance with the law.

Regulations on compensation for remaining land investment costs when the State recovers land
Regulations on compensation for remaining land investment costs when the State recovers land

Conditions for compensation for remaining land investment costs when the State recovers land

Pursuant to Article 17 of Decree 88/2024/ND-CP, the remaining land investment costs are the costs that land users have invested in the land according to the provisions of Clause 7, Article 3 of the Land Law. Specifically, the remaining land investment costs are specified in Clause 2, Article 107 of the Land Law 2024 including:

  • Site leveling costs;
  • Expenses for reclamation to increase soil fertility, remove acidity and salinity, and prevent erosion and water intrusion for land used for agricultural production purposes;
  • Cost of reinforcing the bearing capacity against vibration and land subsidence for land used for production and business premises;
  • Compensation, support and resettlement costs have been advanced according to the compensation, support and resettlement plan approved by the competent authority but have not been fully deducted from the land use fee and land rent payable;
  • Other related costs are invested in land in accordance with the purpose of land use.

According to Clause 2 and Clause 3, Article 17 of Decree 88/2024/ND-CP, in order to be compensated for the remaining investment costs on land when the State reclaims land, it is necessary to determine the investment costs and have supporting documents and records including:

  1. Have records and documents proving investment in land, including one of the following documents:
  • Documents, lease contracts, land leveling contracts, land reclamation for land allocated or leased by the State, land improvement, anti-erosion, anti-cavitation, construction, ground reinforcement for production premises export and business;
  • Documents, contract liquidation; Invoices and payment documents for each expense invested in land;
  • Other documents and contracts related to investment in land are established at the time of investment.
  1. In case the remaining investment costs in land do not have records or documents to prove, the Provincial People’s Committee shall, based on the actual situation in the locality, regulate the determination of the remaining investment costs in land.

Cases of compensation for remaining land investment costs when the State recovers land

According to Article 107 of the Land Law 2024, compensation applies when the State recovers land for the purposes of national defense, security and socio-economic development. In addition, the Land Law 2024 stipulates cases where compensation for land is not provided but is still compensated for remaining land investment costs, which land users need to pay attention to. Specifically, they are:

  • Land is allocated by the State without collection of land use fees, except in cases where agricultural land of households and individuals is compensated for land as prescribed in Article 96 of the Land Law 2024;
  • Land allocated by the State to organizations is subject to land use fees but is exempt from land use fees;
  • Land is leased by the State with annual land rental payment; Leased land has a one-time rental payment for the entire rental period but is exempt from land rental, except for the case specified in Clause 2, Article 99 of the Land Law 2024;
  • Land belonging to the agricultural land fund used for public purposes is leased by the Commune People’s Committee;
  • Contracted land for agricultural production, forestry, aquaculture, and salt production;
  • The allocated agricultural land area exceeds the limit prescribed in Article 176 of the Land Law 2024.
Regulations on cases of compensation for remaining investment costs in land
Regulations on cases of compensation for remaining investment costs in land

What should be done when the state compensates inadequately?

In case the State does not adequately compensate and land users do not agree with the compensation plan, Article 237 of the Land Law 2024 stipulates that people have the right to take measures to protect their rights. Specifically, land users and people with rights and obligations related to land use who have grounds to believe that the State compensates for land inadequately have the right to:

  • Complaints about administrative decisions and administrative acts on land management.
  • Initiate lawsuits against administrative decisions and administrative acts on land management.

And when carrying out the complaint procedure, the complainant needs to pay attention to the statute of limitations for complaints. Pursuant to the provisions of Article 9 of the Law on Complaints 2011, the statute of limitations for complaints about administrative decisions or administrative acts in the field of land management is 90 days from the date the people receive or learn of an unreasonable compensation decision.

But if the complainant cannot exercise the right to complain on time due to illness, natural disaster, enemy sabotage, long-distance business trip, study or other objective obstacles, then the period of that obstacle will not be included in the statute of limitations for complaints.

Therefore, understanding the rights to complain and the statute of limitations for complaints is very important to ensure the rights of land users during the compensation process.

What to do when the State compensates inadequately?
What to do when the State compensates inadequately?

Compensation consulting when the state recovers land according to standards in Long Phan

Long Phan provides in-depth consulting and support services on land compensation, focusing on ensuring optimal benefits for customers. Long Phan’s services will support you comprehensively in the compensation process, from document preparation to dispute resolution. Below are the services that Long Phan provides to you as follows:

Long Phan provides in-depth consulting services on land compensation:

  • Consulting is needed to determine and evaluate remaining land investment costs.
  • Support in collecting and completing documents and documents proving costs.
  • Appraise and evaluate compensation plans of state agencies.
  • Consulting on optimal solutions for customers.
  • Authorized representative during the dispute resolution process.
  • Consulting on negotiations with state agencies on compensation plans.
  • Support in implementing procedures related to land compensation.

With a team of experienced experts, Long Phan is committed to providing optimal solutions to help you receive worthy compensation. Please contact Long Phan immediately via the hotline: 0906735386 for a free consultation and to accompany you throughout the compensation settlement process.