Risks of buying land without a red book that people should know

Minh Huy (T/H) |

Buying land without a red book carries legal and financial risks. Buyers may lose everything if a dispute arises.

5 big risks when buying a house or land without a red book

+ Not verifying the exact origin of the land:

Houses and land without land use right certificates will cause difficulties in verifying the origin of that land.

For example, land users will not know whether the land they buy is in the planning area or not; whether the land is being encroached upon or disputed or not?

+ Disputes are likely to occur:

When transferring land use rights, it must be registered at the land registration office. This transfer is only effective from the time of registration in the land registry. If the house or land does not have a red book and the change is not registered, even if the buyer pays, he or she will not have the right to use that land.

+ No mortgage loan:

According to Article 45 of the 2024 Land Law, land users who want to mortgage their houses and land to borrow money must have a red book.

+ Restricted land use rights:

Land users without red books will have their rights restricted such as: Transfer, donation, inheritance, mortgage, conversion of land use purpose, leasing... (except for households and individuals who have not been granted red books but are eligible for red books according to the 2024 Land Law).

+ Difficult to get construction permit:

The application for a construction permit requires documents proving land use rights according to the provisions of the 2024 Land Law. If the purchased land does not have a red book, it is very difficult to build a new house or renovate it.

Limit risks when buying land without red book?

When buying land without a red book, to limit risks, the buyer needs to make a deposit contract, which clearly states the terms of the seller's commitment and compensation when the seller fails to fulfill the commitment.

Clearly state that the land currently does not have a red book. After completing the procedures to apply for a red book, the seller must complete the procedures to transfer the red book to the buyer.

On the buyer's side, you should find out information about the land: is the land encroached upon, disputed, or planned?

The buyer requires the seller to hand over the originals of all documents related to the land. In case the property is jointly owned by the seller and his/her spouse, both parties must participate in the transaction.

Minh Huy (T/H)
TIN LIÊN QUAN

There is money to make red books for ethnic minorities but it is difficult to implement

|

Quang Tri - Support for residential land, granting red books for residential land and production land to ethnic minorities, although funded, is difficult to implement.

Transferring the name of the inherited house and land title should understand these steps clearly

|

The heir needs to clearly understand the documents and procedures to transfer the red book name conveniently and quickly.

Why are people not allowed to mortgage red books?

|

Red books are not assets. Therefore, people cannot mortgage red books but can only use them as collateral.

1 victim of a series of accidents in Hanoi did not survive

|

Many people were injured in the series of accidents that occurred on the morning of July 9 at the Tran Dai Nghia - Dai La intersection (Hanoi), a man did not survive.

The only waste treatment plant closed, by the end of July, Ca Mau had no more place to bury waste

|

Ca Mau - After the waste treatment plant closed, Ca Mau took the waste to bury. This is a temporary solution, but by the end of July there is no more burial place.

Da Nang stops all paragliding activities in Son Tra mountain area

|

The Management Board of Son Tra Peninsula and Da Nang tourist beaches said that it has stopped all paragliding activities on Son Tra peninsula since July 9.

Dam Vinh Hung officially continues the lawsuit with Bich Tuyen's husband

|

On July 8 (ie July 9, Vietnam time), the US court officially allowed Dam Vinh Hung to continue pursuing the lawsuit with Bich Tuyen's husband.

Israel declares it has the potential to cease fire with Hamas

|

Israeli officials said the possibility of a ceasefire with Hamas is significant, although more time is needed to agree on details.

There is money to make red books for ethnic minorities but it is difficult to implement

HƯNG THƠ |

Quang Tri - Support for residential land, granting red books for residential land and production land to ethnic minorities, although funded, is difficult to implement.

Transferring the name of the inherited house and land title should understand these steps clearly

Minh Huy (T/H) |

The heir needs to clearly understand the documents and procedures to transfer the red book name conveniently and quickly.

Why are people not allowed to mortgage red books?

Minh Huy (T/H) |

Red books are not assets. Therefore, people cannot mortgage red books but can only use them as collateral.