Limit of receiving agricultural land use rights transfer
Article 177 of the 2024 Land Law stipulates that individuals are allowed to receive the transfer of agricultural land use rights but not exceeding 15 times the land allocation limit prescribed in Article 176 of this Law. This limit depends on each type of land and area.
For example, in the plains, the limit for annual land allocation is 3 hectares, so each individual can only receive a maximum transfer of 45 hectares.
The determination of the limit should be based on land conditions, production technology, labor shift and economic structure, urbanization process. The People's Committee (UBND) at the provincial level shall specify the limit for receiving the transfer of agricultural land use rights of individuals, in accordance with local realities.
Risks of transferring agricultural land exceeding the limit
In case of receiving agricultural land transfers exceeding the limit, people may face many legal risks.
Firstly, the transfer contract is at risk of being invalidated partly due to violations of the provisions of law.
Second, agricultural land exceeding the limit is not granted a red book. Buyers are only granted a certificate for the land within the limit, the rest is easily disputed, especially when the seller and the buyer do not clearly agree on the responsibility for the land outside the limit.
Third, the risk of land reclamation. Agricultural land exceeding the limit is easily reclaimed by the State, limiting further transfers, reducing its use value and commercial value.
Fourth, it is difficult to mortgage loans. Banks often refuse to mortgage land exceeding the limit due to legal risks.
Fifth, it is difficult to accumulate large plots of land. Modern agriculture needs a large area of cultivation, but individuals must not be named in excess of the limit. Enterprises often have to lease state land instead of buying directly from farmers.
Recommendations for receiving land transfers exceeding the limit
Before buying and selling land, you should clearly understand the locality transfer limit to avoid legal risks.
If you want to accumulate large-scale production land, you should consider leasing land from the State or contributing capital using land use rights instead of only receiving transfers.
When signing a contract, it is necessary to clearly state the area within and outside the limit, to avoid future disputes.
