Are the regulations inappropriate?

(CLO) The Ho Chi Minh City Real Estate Association (HoREA) has recently received a document from Hiep Phuoc Industrial Park Joint Stock Company (HIPC) regarding obstacles and difficulties encountered in implementing the 2024 Land Law and Decree No. 123/2024 at Hiep Phuoc Industrial Park.

Accordingly, HIPC stated that it has reported to the relevant units regarding the registration and issuance of certificates of land use rights, ownership of houses and other assets attached to the land (certificates) at Hiep Phuoc Industrial Park (Hiep Phuoc commune, Nha Be district).

HIPC stated that the 2024 Land Law stipulates that in cases of land use change registration, land users must register the change with the competent authority within 30 days from the date of the change; in the case of enforcement of judgments, the deadline for registration of changes is calculated from the date of handover of the judgment enforcement asset or the auctioned asset.

Furthermore, Decree 123/2024/ND-CP stipulates that in cases of leasing, subleasing, or mortgaging land use rights without meeting the necessary conditions or without registering land use changes, administrative penalties will be imposed on the person who leased, subleased, or mortgaged the land.

An industrial park in Ho Chi Minh City has raised concerns about some obstacles and difficulties encountered in implementing the 2024 Land Law and Decree No. 123. (Photo: ST)

Currently, Hiep Phuoc Industrial Park has cases where sublease contracts are signed with payment made according to the contract's progress, divided into many installments and spread over several years.

Therefore, only after the investor fulfills their payment obligations on time as stipulated in the contract will HIPC proceed with the book splitting procedure, and this process can take many years from the time the contract is signed by both parties.

Therefore, HIPC is unable to complete the procedures for registering and issuing certificates to the land sub-lessee within the 30-day period as stipulated above.

However, according to Decree 123/2024/ND-CP, if businesses are slow to complete the procedures for registering changes in land use, penalties will still be imposed on those who have leased or subleased the land.

"The current regulation, which imposes penalties on those who lease or sublease land but fail to register changes within 30 days of signing the contract, is not in line with reality and will create significant difficulties for businesses operating industrial park infrastructure," HIPC stated.

Regarding this issue, Mr. Le Hoang Chau, Chairman of HoREA, stated that the obstacles and difficulties of Hiep Phuoc Industrial Park (HIPC) are not unique and can occur in all industrial parks, export processing zones, high-tech zones, and industrial clusters (collectively referred to as industrial parks).

After researching regulations related to cases like the one above, HoREA found that the current regulations are not consistent, not interconnected, and do not include cases where the parties agree to pay rent in installments as per Article 481 of the 2015 Civil Code.

Therefore, the Association recognizes the necessity of amending certain points in Decree 123/2024/ND-CP. Specifically, HoREA proposes amending the penalties for administrative violations and the application of remedial measures in cases involving transactions related to the transfer of land use rights, leasing, subleasing, and capital contribution using land use rights.

Accordingly, in cases of leasing, subleasing, or mortgaging land use rights without meeting the necessary conditions or without registering land use changes, administrative penalties will be imposed on the person who leased, subleased, or mortgaged the land.

The association recommends that the 30-day deadline from the date of change, during which land users must register the change with the competent authority as stipulated in this decree, should not be applied to businesses operating infrastructure that lease or sublease land use rights where the parties agree on periodic land rent payments.

Source: https://www.congluan.vn/xu-phat-nguoi-cho-thue-lai-dat-neu-cham-dang-ky-bien-dong-sau-30-ngay-quy-dinh-lieu-da-phu-hop-post325318.html