Conditions for converting agricultural land use rights
Article 45 of the 2024 Land Law stipulates the conditions for transferring land use rights:
Households (land users) are allowed to exercise rights such as: transfer, conversion, lease, donation, inheritance, mortgage, capital contribution... when meeting the following conditions:
- Having a land use right certificate (red book), except for some special cases such as inheritance, donation to the State, conversion of agricultural land when consolidating land to exchange plots, donation of land use rights to the State, communities and cases specified in Clause 7, Article 124 and Point a, Clause 4, Article 127 of the 2024 Land Law.
- Land without disputes or disputes that have been resolved by judgments or decisions that are legally effective.
- Land not subject to seizure or other measures to ensure enforcement of judgments.
- Land is still within the term of use.
- Land not subject to temporary emergency measures.
The conditions for converting agricultural land use rights are stipulated in Article 47 of the 2024 Land Law as follows:
Individuals using agricultural land allocated by the State, converted, transferred, inherited, or donated legal land use rights from others are only allowed to transfer agricultural land use rights within the same provincial administrative unit to other individuals and are not required to pay income tax from the conversion of land use rights and registration fees.
Converting agricultural land use rights without a red book is subject to fines
Pursuant to Article 17 of Decree 123/2024/ND-CP regulating the transfer of rights, lease, sublease, mortgage using land use rights without meeting the prescribed conditions:
- The form and level of penalty for converting agricultural land use rights without meeting the prescribed conditions are as follows:
+ Fine from 2 - 3 million VND for the act of converting agricultural land use rights without meeting one of the conditions prescribed in Clause 1, Article 45 of the Land Law;
+ Fine from 3 - 5 million VND for the act of converting agricultural land use rights without meeting the conditions prescribed in Article 47 of the Land Law;
+ Fine from 5 - 10 million VND for the act of converting agricultural land use rights without meeting the conditions prescribed in Clause 1, Article 45 and Article 47 of the Land Law.
- The act of an individual who is an ethnic minority person who is allocated or leased land by the State according to the provisions of Clause 3, Article 16 of the Land Law (except for the cases specified in Clause 1, Clause 2, Article 48 of the Land Law) and transfers, contributes capital, donates, or inherits land use rights shall be subject to a fine of VND 5 - 10 million.
- The act of transferring, leasing, subleasing, inheriting, donating land use rights; mortgaging, contributing capital using land use rights that do not meet one of the conditions prescribed in Clause 1, Article 45 of the Land Law shall be subject to the following forms and levels of sanctions:
Accordingly, the act of converting agricultural land use rights without a red book as prescribed in Clause 1, Article 45 of the 2024 Land Law may be subject to a fine of 2 - 3 million VND. If the additional conditions for converting land use rights in Article 47 of the 2024 Land Law are not met, a fine of up to 10 million VND may be imposed according to the above regulations. However, in the case of converting agricultural land use rights when consolidating land plots and exchanging plots, it is not necessary to meet the conditions for having a red book.
Note, the above fine is the fine for individuals and organizations with the same violation, the fine is twice the individual fine.
