2 cases of refund when buying land in planning

Linh Trang |

When buying land in planning area, there are often many disadvantages. So in case of buying land in planning area, can it be returned?

According to the provisions of Clause 6 and Clause 7 of the 2024 Land Law, in case of houses and land in the planning area, the transfer can still be carried out normally, but it is not allowed to build new houses, works, or plant new perennial trees.

When receiving a transfer of land use rights (land only), ownership of assets attached to land (land, houses and other assets if any) under planning but the transferee does not know, he/she has the right to return the land and request the transferor to return the money if it falls into one of the following two cases:

Case 1: The contract stipulates

Normally, when making a transfer contract, the transferor guarantees that the land is not in the planning area, meets the transfer conditions according to regulations, the real estate documents are legal, the real estate is not mortgaged, etc.

In case the transferor guarantees or commits in the contract that the land is not subject to planning, but later the transferee discovers that the land is subject to planning before the contract takes effect (the time the guarantee or commitment takes effect), the transferor has the right to request the transferor to return the money and return the land to the transferor.

If the contract has provisions but the transferor does not comply with the contract, he has the right to file a lawsuit at the People's Court.

Case 2: The contract does not specify but the transferor agrees to receive back the land use rights and return the money to the transferee (almost never happens in reality).

When not falling into one of the above two cases, the transferee must "accept"; in this case, people need to clearly understand the rights of the person whose land is under the planning.

Linh Trang
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