Procedures for transferring land from businesses to individuals

The procedure for transferring land from businesses to individuals is a complex process that requires strict compliance with legal regulations, including the notarization of transfer contracts, the fulfillment of financial obligations, and name transfer. When transferring land use rights, businesses need to fully meet the conditions and procedures. This article will provide detailed instructions on important steps and notes when carrying out land transfer procedures from businesses to individuals.

Conditions for transferring land from businesses to individuals

To transfer land use rights from businesses to individuals, the conditions must be met as prescribed in Article 45 of the Land Law 2024. Specifically, these include the following conditions:

• Have a Certificate of land use rights or Certificate of house ownership and residential land use rights or Certificate of land use rights, ownership of houses and other assets attached to land or Certificate of land use rights and ownership of assets attached to land;
• The land is not in dispute or the dispute has been resolved by a competent state agency, the judgment or decision of the Court, or the decision or award of the Arbitration has taken legal effect;
• Land use rights are not distrained, other measures are applied to ensure judgment enforcement according to the provisions of the law on civil judgment enforcement;
• During the land use term;
• Land use rights are not subject to temporary emergency measures according to the provisions of law.

In case the investor transfers land use rights with technical infrastructure in a real estate project, in addition to the above conditions, other conditions must also be met as prescribed by the Law on Real Estate Business and the Law on Housing.

Full compliance with these conditions is the basis for ensuring land use rights transfer transactions take place legally and protect the rights of both businesses and individuals.

>>> See more: Conditions for transferring corporate land use rights under the new Law.

Procedures for transferring land use rights from businesses to individuals

After determining that the transfer conditions have been met, the parties proceed to carry out the steps in the procedure for transferring land use rights from businesses to individuals. This process includes signing a notarized transfer contract and carrying out name transfer procedures at a competent state agency.

Step 1: Sign the transfer contract

Businesses and individuals negotiate and agree on the terms of land use rights transfer contracts.

• The contract needs to be made in writing and have all the main contents, including information of the parties, information about the land plot, transfer price, payment method, time of land delivery, rights and obligations of the parties, liability for breach of contract and other agreements.
• Land use rights transfer contracts must be notarized or authenticated according to the provisions of Clause 3, Article 27 of the Land Law 2024.

Note: In the case of a land use rights transfer contract where one party or parties participating in the transaction are real estate business organizations, the notarization or certification of the transfer contract shall be performed at the request of the parties.

Step 2: Carry out name transfer procedures (land change registration)

After the transfer contract has been notarized or authenticated, the parties are responsible for carrying out procedures for registering land changes (name transfer) at a competent state agency as prescribed in Article 37 of Decree 101/2024/ND-CP.

Documents to submit:

• Application for registration of changes in land and assets attached to land according to Form No. 11/DK issued together with Decree 101/2024/ND-CP.
• Original issued Certificate of Land Use Rights.
• The land use rights transfer contract has been notarized or authenticated.
• Document on representation according to civil law (if any).
• Certified copies of legal documents of the transferor (Business registration certificate) and transferee (ID card/Citizen identification card).
• Other documents related to the content of changes (if any).

Fulfill financial obligations: To complete the name transfer procedure, the parties must fulfill their financial obligations to the State according to the provisions of law, including:

• Declare and pay registration fee according to Form No. 01/LPTB issued with Circular 80/2021/TT-BTC.
• The transferring enterprise is obliged to declare and pay corporate income tax from real estate transfer activities according to regulations.

Where to submit application: Enterprises submit land use rights transfer documents at one of the following locations:

• One-Stop Department of the Provincial People’s Committee.
• Land registration office or Land registration office branch where the land is located.

Document processing process:

• In case of submission at the One-Stop Department, the documents will be transferred to the Land Registration Office for processing.
• In case it is necessary to re-determine the residential land area, the receiving agency will transfer the documents to the Land Registration Office Branch.
• After receiving valid documents, the land registration agency will send cadastral information to the tax agency to determine financial obligations.
• Businesses and individuals pay amounts according to notices from tax authorities.
• The land registration agency updates information about new land users in cadastral records and land use rights certificates.
• Return the updated Land Use Rights Certificate results to the transferee (individual).

Resolution deadline: No more than 10 working days from the date of receipt of valid documents. For mountainous communes, islands, remote areas, areas with difficult socio-economic conditions, areas with particularly difficult socio-economic conditions, the implementation time is increased by 10 working days.

Correct and complete implementation of the steps in the transfer procedure is a factor in ensuring that the transaction is carried out legally and that the rights of the parties are protected.

Notes when transferring land from businesses to individuals

When performing a land transfer transaction from a business to an individual, there are a number of issues that both parties need to pay special attention to to ensure the transaction is safe, legal and avoid unnecessary legal risks. Specifically, note the following issues:

Carefully check the legality of the land plot:

• The individual receiving the transfer needs to request the business to provide all legal documents related to the land plot, including Land Use Rights Certificate and other documents (if any).
• It is necessary to carefully check information about the land user, area, land use form, land use term, and rights restrictions (if any) on the Certificate.
• Check to see if the land plot is under dispute, distrained, or has any other legal problems.

Content of transfer contract:

The land use rights transfer contract needs to be drafted clearly and fully containing important terms such as information of the parties, detailed information about the land plot, transfer price, payment method, time of land handover, rights and obligations of each party, liability for breach of contract, and other agreements (if any).

Financial obligations:

Both the transferring enterprise and the individual receiving the transfer have financial obligations to the State arising from the land use rights transfer transaction. Specifically:

• The transferring enterprise may have to pay corporate income tax from real estate transfer activities.
• Individuals receiving transfers must pay registration fees when registering land use rights.

In addition, other related fees may arise.

Notarization of transfer contract:

• Notarization of the transfer contract will ensure the legality and safety of the transaction, and will also be the basis for carrying out procedures for transferring land use rights.
• Carry out name transfer procedures on time.
• After the transfer contract is notarized, the parties need to urgently carry out procedures for transferring land use rights at the land registration agency within the prescribed time limit.

Above are notes on procedures for transferring land from businesses to individuals that parties involved in the transaction need to know to ensure their rights.

>>> See more: Enterprises Receiving Transfer of Agricultural Land.

Consulting services Procedures for transferring land from businesses to individuals

Long Phan Consulting Company is proud to provide professional and comprehensive consulting services on land transfer procedures from businesses to individuals. Our services include:

• Consulting on conditions for transferring land use rights.
• Consulting on necessary documents and records for transfer procedures.
• Draft and review land use rights transfer contracts.
• Guide and support the implementation of notarization procedures for transfer contracts.
• Consulting on financial obligations related to transfer transactions.
• Representing customers to carry out land change registration procedures.
• Resolve legal issues that arise during the transfer process.
• Providing optimal legal solutions to ensure transfer transactions take place smoothly and quickly.

With professional support from Long Phan Consulting, customers can be completely assured about the legality and effectiveness of the land transfer process from businesses to individuals.

Frequently asked questions

Below are frequently asked questions about the customs of transferring land from businesses to individuals, customers can refer to:

How can the individual receiving the transfer check the planning information of the land plot?

Individuals can check the planning information of the land plot at the People’s Committee of the district/town/city where the land is located or at local construction planning management agencies. Currently, some localities also provide planning information online.

In addition to mandatory content, what other provisions should be considered for inclusion in the transfer contract to protect the interests of the parties?

The parties should consider including in the contract provisions on the seller’s commitment to the legal status of the land plot, responsibility for handling problems that arise (if any) after the transfer, provisions on penalties for specific contract violations, and clear dispute resolution methods.

What are the main roles and responsibilities of a notary in the process of notarizing a transfer contract?

The notary is responsible for checking the legality of the documents, verifying the voluntary will of the parties, clearly explaining the rights and obligations, and certifying that the transfer contract has been legally signed, ensuring the transaction has legal validity.

What is the average time to complete the procedure for transferring land use rights after submitting valid documents?

The time to complete the name transfer procedure often fluctuates depending on the process and performance of the land registration agency in each locality, but it usually takes about 10 to 30 working days from when the valid documents are received.

In case a dispute arises after signing a notarized contract but the name has not yet been transferred, how should the parties resolve it?

In case of dispute, the parties should prioritize negotiation and mediation. If unsuccessful, the case can be brought to a competent authority for resolution according to the provisions of law (for example, the People’s Court).

Are businesses required to have real estate business functions to transfer their land use rights?

Not necessarily. Enterprises can transfer land use rights as their assets, not necessarily for regular real estate business activities, except in cases where the enterprise operates mainly in the real estate business and the transfer is part of their business activities.

What other costs may arise during the transfer process besides taxes and registration fees?

In addition to corporate income tax and registration fees, other costs may arise such as contract notarization fees, cadastral survey fees (if necessary), document appraisal fees (depending on locality), and legal service costs (if hiring a lawyer or a lawyer’s office to advise and carry out the procedure).

Conclude

For detailed advice and support in implementing land transfer procedures from businesses to individuals quickly and effectively, please contact Long Phan Consulting Company via the hotline: 0906735386 to receive dedicated support from our team of professional experts. We provide high quality services, maximally protecting the legal rights and interests of our customers in all transactions related to land use rights.