Procedures for changing land use purposes
Question: DTD & Associates LLP let me ask: My family has 3000m2 of land for perennial crops in Tay Nguyen. But now, because of daily life demand, I want to convert 200m2 of land for perennial crops into residential land. So, what is the procedure for converting such land use purpose? I sincerely thank!
Answer: Hello, thank you for trusting and sending your request for legal advice to DTD & Associates LLP. The content of your question has been researched and advised by our team of lawyers as follows:
+ Law on Land No. 45/2013/QH13 issued by the National Assembly dated November 29, 2013 (“the 2013 Land Law”)
+ Decree No. 43/2014/ND-CP issued by the Government dated May 15, 2014 detailing a number of articles of the Land Law (“Decree No. 43/2014/ND-CP”)
+ Circular No. 30/2014/TT-BTNMT issued by the Ministry of Natural Resources and Environment dated June 02, 2014 on applications for land allocation, lease, repurposing and expropriation (“Circular No. 30/2014/TT-BTNMT”)
+ Decree No. 45/2014/ND-CP issued by the Government dated May 15, 2014 providing the collection of land use levy (“Decree No. 45/2014/ND-CP”)
+ Decree No. 01/2017/ND-CP issued by the Government dated January 06, 2017 on amendments to the Decrees on the implementation of the Land Law (“Decree No. 01/2017/ND-CP”)
According to the information you have provided, you are currently looking to convert 200m2 out of a total area of 3,000m2 of perennial crop land to build houses. Then, you first need to perform the procedure of splitting the parcel in order to carry out changing the land use purpose of the above 200m2.
After completing the procedure of splitting the parcel, you can carry out the procedure of changing the land use purpose. Perennial crop land is agricultural land while residential land is non-agricultural land. Therefore, you need to convert agricultural land into non-agricultural land in order to build houses on the above 3,000m2 area. Accordingly, the conversion procedure will be as follows:
Firstly, regarding conditions for changing the purpose of land use from agricultural land to non-agricultural land:
Pursuant to Article 52 of the 2013 Land Law:
Article 52. Bases for land allocation, land lease and change of land use purpose
1. The annual district-level land use plans which have been approved by competent state agencies.
2. Land use demands as indicated in investment project documents or in applications for land allocation, land lease or change of land use purpose.
Accordingly, in order to be able to change the land use purpose, that land area must be included in the district's annual land use plans, approved by competent state agencies and your land use demands must be indicated in the application for change of land use purpose. In addition, the conversion of land use purpose from agricultural land to non-agricultural land requires the permission of a state agency and must fulfill its financial obligations in accordance with Article 57 of the 2013 Land Law.
Article 57. Change of land use purpose
1. Cases in which change of land use purpose requires permission by competent state agencies:
d/ Change of agricultural land to non-agricultural land;
2. When changing the land use purpose under Clause 1 of this Article, land users shall fulfill financial obligations as prescribed by law. The land use regime and the rights and obligations of land users are those applicable to the type of the land used for the new purpose.
Secondly, regarding procedures for changing land use purpose:
When the above conditions are met, you will need to prepare a set of documents to change the land use purpose from agricultural land to non-agricultural land.
*Documents preparation
According to Clause 1, Article 6 of Circular 30/2014 / TT-BTNMT, the requested documents includes:
1) A completed application form for repurposing of land provided in the form No. 1 attached hereto;
2) Either of the certificate of land use rights or certificate of house ownership and land use rights or the certificate of land use rights, house ownership and other property pertaining to land.
3) In addition, it is necessary to attach a household registration book, identity card or citizenship card.
*Agencies receiving dossiers
District-level Natural Resources and Environment Divisions (according to Point b, Clause 1, Article 60 of Decree No. 43/2014 / ND-CP)
Note: If the application is not sufficient, it must notify and guide the applicant to supplement and complete the application within no more than 03 working days.
Thirdly, duration for settlement:
According to Clause 40, Article 2 of Decree 01/2017 / ND-CP, the duration for changing the land use purpose does not exceed 15 working days.
Fourth, regarding collection of land use levy upon change land use purpose:
According to Point b, Clause 2, Article 5 of Decree No. 45/2014 / ND-CP:
Article 5. Collection of land use levy upon change of land use purpose
2. For households and individuals:
b/ In case of change from agricultural land allocated by the State without land use levy to residential land, land use levy shall be collected at a level equal to the difference between land use levy calculated based on the residential land price and land use levy calculated based on the agricultural land price at the time of issuance of a decision on change of land use purpose by a competent state agency;
Accordingly, in case you want to change the purpose of land use from perennial crop land to residential land, the amount of money you have to pay is:
Land use levy = 200 x residential land price / m2 - 200 x current agricultural land price / m2
