According to Lao Dong reporter's research, buying plots of land without red books, being involved in disputes, lawsuits... and not being able to carry out land division procedures is a story shared by many investors on forums and social networks.
Mr. Nguyen Van Minh (from Dong Ve ward, Thanh Hoa city) said that due to idle money, in 2022, his family was invited by a friend to invest in land in Me Linh district, Hanoi.
According to Mr. Minh, from a group of friends introducing him, he decided to buy a 100m2 plot of land, priced at more than 2 billion VND in Kim Hoa commune, Me Linh district. However, for nearly 3 years, the land plot has not been able to be divided because Mr. Minh had previously only bought and sold it through handwritten documents, and this land has not yet qualified for a red book.
"A plot of land must have a land use right certificate, this is one of the mandatory conditions for dividing the plot. Previously, because I wanted to be cheap, I quickly decided to buy this plot of land even though I only had handwritten documents, with the purpose of waiting for the price to increase over time. Now we cannot complete the procedures for dividing the plot, so the land lot has a reduced value, we have to lower the price to find a buyer" - Mr. Minh said.
Mr. Tran Hoang - a long-time real estate broker in Hanoi - recommends that investors need to carefully research the legality, red book, and be careful before spending money to buy land, not investing according to the psychological effect of the crowd.
According to Mr. Tran Hoang, in addition to learning about the legality of the land plot, investors need to pay attention to whether the land is in dispute or transferred or not.
The decision on the conditions for land division of the People's Committees of some provinces and cities also clearly stipulates that land without disputes can only be divided.
Investigation by Lao Dong reporters shows that the 2023 Law on Real Estate Business stipulates that land use rights cannot be transferred to individuals who build their own houses, self-dividend plots for sale in the areas of wards, districts, cities of special-class urban areas, types I, II and III and are subject to auction of land use rights to invest in housing construction projects according to the provisions of the Land Law.
For the remaining areas, the provincial People's Committee will base on local conditions to determine the areas where project investors are allowed to transfer land use rights with technical infrastructure to individuals to build their own houses.
Mr. Dinh Minh Tuan - Director of Property Guru Vietnam - also informed that the new regulations on subdivision and division of plots can have a great impact on the land market in terms of supply, customer base, and selling price.
Mr. Dinh Minh Tuan believes that in the coming time, the land market may see a large number of products with large areas of investors "holding land" with the purpose of dividing plots for sale.
In the long term, tightening the subdivision and sale of land will help the market develop in a transparent and sustainable direction, prevent speculation, "inflate" virtual prices, and limit waste of land and resources.
