PART FIVE
PROVISIONS ON THE TRANSFER OF LAND USE RIGHTS
Chapter XXVI
GENERAL PROVISIONS
Article 688.- Bases for establishment of land use rights
1. Land is under the State's ownership and the Government's unified management.
2. Land use rights of individuals, legal persons, households and other subjects shall be established upon the land assignment or lease or the land use right recognition by the State.
3. Land use rights of individuals, legal persons, households and other subjects shall also be established upon the transfer thereof by other persons in accordance with the provisions of this Code and the land law.
Article 689.- Forms of transfer of land use rights
1. The transfer of land use rights shall be carried out through contracts, except for the case specified in Clause 3 of this Article.
2. The contracts on land use right transfer must be made in writing, notarized or authenticated in accordance with the provisions of law.
3. The inheritance of land use rights shall comply with the provisions of Articles 733 thru 735 of this Code.
Article 690.- Price for transfer of land use rights
The price for a transfer of land use rights shall be agreed upon by the parties or provided for by law.
Article 691.- Principles for transfer of land use rights
1. Individuals, legal persons, households and other subjects using land shall be entitled to transfer the land use rights only when they are so permitted by law.
2. When transferring the land use rights, the parties shall be entitled to agree on the contents of the contract for the transfer of land use rights but must comply with the provisions of this Code and the land law.
3. The transferee of the land use rights must use the land for the right purposes and within the duration stated in the land use right certificates and in compatibility with land use plannings or plans in the localities at the time of land use right transfer.
Article 692.- Effect of transfer of land use rights
The transfer of land use rights shall take effect as from the time the land use rights are registered in accordance with the provisions of land law.
Chapter XXVII
CONTRACTS FOR EXCHANGE OF LAND USE RIGHTS
Article 693.- Contracts for exchange of land use rights
A contract for exchange of land use rights is an agreement between parties whereby the parties transfer land and land use rights to each other in accordance with the provisions of this Code and the land law.
Article 694.- Contents of contracts for exchange of land use rights
A contract for exchange of land use rights shall contain the following contents:
1. Names and addresses of the parties;
2. Rights and obligations of the parties;
3. Category, grade, acreage, location, code number, boundaries and conditions of the land;
4. Time for the transfer of land;
5. The land use term of the exchanger; the remainder of the land use term for the exchange;
6. The difference in land use right value, if any;
7. Rights of a third party to the exchanged land, if any;
8. The parties' liabilities for breach of the contract.
Article 695.- Obligations of parties to the exchange of land use rights
The parties to an exchange of land use rights shall have the following obligations:
1. To transfer land to each other in strict accordance with the land acreage, grade, category, location, code number and conditions as agreed upon;
2. To use the land for the right purposes and within the prescribed duration;
3. To pay fees for the exchange of land use rights with respect to the area of land received and perform the obligations of a land user as provided for by this Code and the land law;
4. To pay the difference, if the value of the exchanged land use rights of one party is higher than that of the other, unless otherwise agreed upon.
Article 696.- Rights of parties to the exchange of land use rights
The parties to an exchange of land use rights shall have the following rights:
1. To request the other party to transfer the land in strict accordance with the land acreage, grade, category, location, code number and conditions as agreed upon;
2. To request the other party to hand over all the valid papers related to the land use rights;
3. To be granted a land use right certificate for the exchanged land;
4. To use land in strict accordance with the prescribed purpose and duration.
Chapter XXVIII
CONTRACTS FOR ASSIGNMENT OF LAND USE RIGHTS
Article 697.- Contracts for assignment of land use rights
A contract for the assignment of land use rights is an agreement between parties whereby the land use right assignor transfers the land and land use rights to the assignee and the assignee shall pay money to the assignor in accordance with the provisions of this Code and the land law.
Article 698.- Contents of contracts for assignment of land use rights
A contract for the assignment of land use rights shall include the following contents:
1. Names and addresses of the parties;
2. Rights and obligations of the parties;
3. Category, grade, acreage, location, code number, boundaries and conditions of the land;
4. Land use term of the assignor; the remainder of the land use term for the assignee;
5. Assignment price;
6. Mode and time of payment;
7. Rights of a third party to the assigned land;
8. Other information related to the land use rights;
9. The parties' liabilities for breach of the contract.
Article 699.- Obligations of the land use right assignor
The land use right assignor shall have the following obligations:
1. To transfer the land to the assignee in strict accordance with the land acreage, grade, category, location, code number and conditions as agreed upon;
2. To hand over the papers related to the land use rights to the assignee.
Article 700.- Rights of the land use right assignor
The land use right assignor shall have the rights to receive money for the assignment of land use rights; in cases where the assignee is late in making the payment, the provisions of Article 305 of this Code shall apply.
Article 701.- Obligations of the land use right assignee
The land use right assignee shall have the following obligations:
1. To pay money to the land use right assignor in full, on time and by the agreed mode;
2. To register the land use rights as provided for by the land law;
3. To ensure the rights of the third party to the assigned land;
4. To perform other obligations as provided for by the land law.
Article 702.- Rights of the land use right assignee
The land use right assignee shall have the following rights:
1. To request the land use right assignor to hand over all papers related to the land use rights;
2. To request the land use right assignor to transfer the land in strict accordance with the land acreage, grade, category, location, code number and conditions as agreed upon;
3. To be granted a land use right certificate for the assigned land;
4. To use land in accordance with the right purposes and duration.
Chapter XXIX
CONTRACTS FOR LAND USE RIGHT LEASE, SUBLEASE
Section 1. CONTRACTS FOR LAND USE RIGHT LEASE
Article 703.- Contracts for land use right lease
A contract for land use right lease is an agreement between parties whereby the lessor shall transfer the land to the lessee for use in a period of time, and the lessee must use such land for the right purpose, pay the rent and return the land when the lease term expires as provided for by this Code and the land law.
Article 704.- Contents of contracts for land use right lease
A contract for land use right lease shall contain the following contents:
1. Names and addresses of the parties;
2. Rights and obligations of the parties;
3. Category, grade, acreage, location, code number, boundary and conditions of the land;
4. Lease term;
5. Lease price;
6. Mode and time of payment;
7. Rights of a third party to the leased land;
8. The parties' liabilities for breach of the contract;
9. Remedy of consequences when the land use right lease contract expires.
Article 705.- Obligations of the land use right lessor
The land use right lessor shall have the following obligations:
1. To register the lease of land use rights;
2. To transfer land to the lessee in accordance with the land acreage, location, code number, category and conditions as agreed upon;
3. To lease land use rights within the term of land allocation or lease;
4. To check and remind the lessee to protect, preserve and use the land for the right purpose;
5. To pay land use tax, unless otherwise agreed upon;
6. To inform the lessee of the rights of the third party to the leased land.
Article 706.- Rights of the land use right lessor
The land use right lessor shall have the following rights:
1. To request the land use right lessee to pay the rent in full;
2. To request the lessee to immediately stop the use of land not for the right purpose, the destruction of land or the reduction of its use value; if the lessee fails to immediately stop such violations, the lessor shall be entitled to unilaterally terminate the performance of the contract and request the lessee to return such land and compensate for damage;
3. To request the lessee to return the land upon expiration of the lease term.
Article 707.- Obligations of the land use right lessee
The land use right lessee shall have the following obligations:
1. To use land for the right purpose, within the boundary and the lease term;
2. Not to destroy the land or reduce its use value and to fulfill other requirements as agreed upon in the land use right lease contract;
3. To pay the rent in full, on time, at the right place and by the agreed mode; in the event the use of land fails to generate profits, the lessee shall still be obligated to pay the rent in full, unless otherwise agreed upon;
4. To comply with the regulations on environmental protection; not to cause damage to the legitimate rights and interests of the surrounding land users;
5. To return the land in the same conditions as when it was received upon the expiration of the lease term, unless otherwise agreed upon.
Article 708.- Rights of the land use right lessee
The land use right lessee shall have the following rights:
1. To request the lessor to transfer the land in strict accordance with the land acreage, location, code number, grade, category and conditions as agreed upon;
2. To use the leased land in a stable manner within the agreed duration;
3. To enjoy the yields and profits from the use of land;
4. To unilaterally terminate the performance of the contract as provided for in Article 426 of this Code;
5. To request the lessor to reduce or exempt the rent in cases where the yields and/or profits are lost or reduced due to force majeurecircumstances.
Article 709.- Delay in payment of rent
When the lessee delays in paying the rent for the lease of land use rights as agreed upon, the lessor may grant an extension; if such extension has expired and the lessee fails to fulfill his/her obligations, the lessor shall be entitled to unilaterally terminate the performance of the contract and request the lessee to return the land. The lessor shall be entitled to request the lessee to make the full payment for the time during which the land use rights were leased, including the interest on the amount of delayed payment at the basic interest rate set by the State Bank corresponding to the period of delayed payment at the time of payment.
Article 710.- Compensation for damage caused by recovery of land
1. When the lessor or the lessee intentionally breaches the obligations of the land user, thus leading to the recovery of land by the State, the breaching party must compensate the other party for the damage.
2. In cases where the contract for the land use right lease is still valid, but for the national security, defense requirements, national interests, public interests and economic development, the State recovers the land, then the contract for the land use right lease shall terminate ahead of time.
In cases where the lessee has paid the rent fully in advance, the lessor must reimburse the lessee the remaining rent corresponding to the period of time when the land has not been used; if the lessee has not yet paid the rent, he/she/it must pay only an amount corresponding to the period of time when the land has been used.
The lessor shall be compensated by the State for the damage caused by the recovery of land in accordance with provisions of law, and the lessee shall be compensated by the State for the loss of yields from such land.
Article 711.- The right to continue leasing land use rights when one party dies
1. In cases where the land use right lessor being an individual dies, the lessee shall be entitled to continue leasing land use rights until the lease term expires.
2. In cases where the land use right lessee being an individual dies, the members of his/her household shall be allowed to continue leasing land use rights until the lease term expires, but must notify a competent state agency thereof.
Article 712.- Assignment of land use rights during the term of a land use right lease
When term of a land use right lease remains in effect, the lessor is still entitled to assign land use rights to another person, if so permitted by a competent state agency, but must inform the lessee thereof so that the latter performs his/her obligations to the land use right assignee.
The lessee shall still be entitled to continue the lease until the contractual term of the land use right lease expires.
Article 713.- Termination of contracts for land use right lease
1. A contract for land use right lease shall terminate in the following cases:
a/ The lease term expires and is not extended;
b/ It is so agreed upon by the parties;
c/ The State recovers the land;
d/ One of the parties unilaterally terminates the performance of the contract or cancels the contract as agreed upon or provided for by law;
e/ The land use right lessee being an individual dies without any other members of his/her household or with other members of his/her household but they do not have demand for continued lease;
f) The leased land area is no longer in existence due to a natural calamity;
g) Other cases specified by law.
2. When a land use right lease contract terminates, the lessee must restore the land to its conditions as when it was received, unless otherwise agreed upon or provided for by law. The property attached to the land shall be settled under the parties' agreement.
Section 2. CONTRACTS FOR LAND USE RIGHT SUBLEASE
Article 714.- Contracts for land use right sublease
Unless otherwise provided for by law, the provisions of Articles 703 thru 713 of this Code shall also apply to contracts for land use right sublease.
Chapter XXX
CONTRACTS FOR LAND USE RIGHT MORTGAGE
Article 715.-Contracts for land use right mortgage
A contract for land use right mortgage is an agreement between the parties whereby the land user (hereinafter referred to as the mortgagor) shall use his/her land use rights to secure the performance of civil obligations toward the other party (hereinafter referred to as the mortgagee). The mortgagor may continue to use the land during the mortgage term.
Article 716.- Scope of land use right mortgage
1. Land use rights may be mortgaged in part or in whole.
2. In cases where a land user mortgages his/her land use rights, his/her houses, other construction works, planted forests, tree gardens and other assets which are attached to land, shall belong to the mortgaged property only when it is so agreed upon.
Article 717.- Obligations of the land use right mortgagor
The land use right mortgagor shall have the following obligations:
1. To hand over the land use right certificate to the mortgagee;
2. To fill the mortgage registration procedures; to cancel the mortgage registration when the mortgage contract terminates;
3. To use the land for the right purpose, not to destroy or reduce the value of the mortgaged land;
4. To repay the loan on time and by the mode agreed upon in the contract.
Article 718.- Rights of the land use right mortgagor
The land use right mortgagor shall have the following rights:
1. To use the land within the mortgage term;
2. To receive the loan from the land use right mortgage by the agreed mode;
3. To enjoy the yields and/or profits gained, except in cases where the yields and/or profits also belong to the mortgaged property;
4. To exchange, assign, lease or sublease the mortgaged land use rights if so consented by the mortgagor;
5. To receive back the land use right certificate after the mortgage obligations have been fulfilled.
Article 719.- Obligations of the land use right mortgagee
The land use right mortgagee shall have the following obligations:
1. To register the mortgage together with the mortgagor;
2. To return the land use right certificate when the mortgagor has fulfilled the obligations secured by the mortgage.
Article 720.- Rights of the land use right mortgagee
The land use right mortgagee shall have the following rights:
1. To examine and remind the land use right mortgagor to protect and preserve the land and use it for the right purpose;
2. To enjoy the priority in debt settlement in cases where the mortgaged land use rights are handled.
Article 721.- Handling of mortgaged land use rights
When the term for the performance of the obligations secured by the mortgage of land use rights is due, and the mortgagor has still failed to perform or performed improperly his/her obligations, the mortgaged land use rights shall be handled as agreed upon; if there is no such agreement or the mortgaged land use rights cannot be handled as agreed upon, the mortgagee shall be entitled to initiate a lawsuit at the court.
Chapter XXXI
CONTRACTS FOR LAND USE RIGHT DONATION
Article 722.- Contracts for land use right donation
A contract for the donation of land use rights is an agreement between the parties whereby the donor transfers his/her land use rights to the donee without requesting any compensation, and the donee agrees to receive them in accordance with the provisions of this Code and the land law.
Article 723.- Contents of contracts for land use right donation
A contract for land use right donation shall contain the following contents:
1. Names and addresses of the parties;
2. The reasons for donation of the land use rights;
3. The rights and obligations of the parties;
4. The land category, grade, acreage, location, code number, boundary and conditions;
5. The remaining land use duration of the donor;
6. A third party's rights to the donated land;
7. The parties' liabilities for breach of the contract.
Article 724.- Obligations of the land use right donor
The land use right donor shall have the following obligations:
1. To transfer the land in strict accordance with the agreed land acreage, grade, category, location, code number and conditions;
2. To hand over the papers related to the land use rights to the donee for carrying out the procedures for land use right registration.
Article 725.- Obligations of the land use right donee
The land use right donee shall have the following obligations:
1. To register the land use rights at a competent state agency defined by the land law;
2. To ensure a third party's rights to the donated land;
3. To perform other obligations as provided for by the land law.
Article 726.- Rights of the land use right donee
The land use right donee shall have the following rights:
1. To request the donor to transfer the land in strict accordance with the agreed land acreage, grade, category, location, code number and conditions;
2. To use the land for the right purpose and within the set time limit;
3. To be granted the land use right certificate.
Chapter XXXII
CONTRACTS FOR CAPITAL CONTRIBUTION WITH LAND USE RIGHT VALUE
Article 727.- Contracts for capital contribution with the land use right value
A contract for capital contribution with the land use right value is an agreement between the parties whereby the land user (hereinafter referred to as the capital contributor) contributes his/her capital with the land use right value for production and/or business cooperation with other individuals, legal persons, family households and/or other subjects under the provisions of this Code and the land law.
Article 728.- Contents of the contracts for capital contribution with the land use right value
A contract for capital contribution with the land use right value shall contain the following contents:
1. Names and addresses of the parties;
2. Rights and obligations of the parties;
3. The land category, grade, acreage, location, code number, boundary and conditions;
4. The remaining land use duration of the capital contributor;
5. The time limit for capital contribution;
6. The land use right value contributed as capital;
7. A third party's rights to the land contributed as capital;
8. The parties' liabilities for breach of the contract.
Article 729.- Obligations of parties contributing capital with the land use right value
A party contributing capital with the land use right value shall have the following obligations:
1. To transfer the land in strict accordance with the time limit, the land acreage, grade, category, location, code number and conditions as agreed upon in the contract;
2. To register the land use rights at a competent state agency as provided for by the land law.
Article 730.- Rights of parties contributing capital with the land use right value
A party contributing capital with the land use right value shall have the following rights:
1. To enjoy profits according to the proportion of capital contribution with the land use right value;
2. To assign, bequeath the capital portion contributed with the land use right value, unless otherwise agreed upon or provided for by law;
3. To receive back the land use rights contributed as capital as agreed upon or upon the expiration of the capital contribution time limit;
4. To cancel the contract and demand compensation for damage if the party receiving the contributed capital fails to pay the profits on time or fails to make full payment thereof.
Article 731.- Obligations of parties receiving capital contributed with the land use right value
A party receiving capital contributed with the land use right value shall have the following obligations:
1. To pay profit portion to the party contributing capital with the land use right value on time and by the mode agreed upon in the contract;
2. To ensure a third party's rights to the land contributed as capital;
3. To fulfill other obligations provided for by the land law.
Article 732.- Rights of parties receiving capital contributed with the land use right value
A party receiving capital contributed with the land use right value shall have the following rights:
1. To request the party contributing capital with the land use right value to transfer the land in strict accordance with the time limit, the land acreage, grade, category, location, code number and conditions as agreed upon in the contract;
2. To use the land for the right purposes and within the agreed time limit;
3. To be granted a land use right certificate in cases where the contributed capital-receiving party is a legal person, except for cases of capital contribution in business cooperation contracts.
Chapter XXXIII
INHERITANCE OF LAND USE RIGHTS
Article 733.- Inheritance of land use rights
The inheritance of land use rights means the transfer of land use rights from the decedent to his/her heir(s) under the provisions of this Code and the land law.
Article 734.- Individuals entitled to bequeath land use rights
Individuals who are assigned or leased land by the State or are transferred the land use rights shall have the right to bequeath the land use rights as provided for in Part Four of this Code and the land law.
Article 735.- Inheritance of the rights to use land assigned to households by the State
If a member of a family household assigned land by the State dies, such member's land use rights shall be left to his/her heirs in accordance with the provisions of Part Four of this Code and the land law.
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