Slow transfer of land use right certificates, both fined and facing difficulties in transfer, donation, and mortgage

Tinh Thong Luat Law Office (Ho Chi Minh City Bar Association) answers: After relatives pass away and leave land use rights, many families only carry out procedures to declare or divide inheritance at notary practice organizations and then continue to manage and use land without carrying out procedures to register changes in land use rights.

Many people believe that if co-heirs have agreed with each other or have notarized documents, the land use right naturally belongs to the heir and no further procedures are required. However, this is an incomplete understanding of the provisions of land law and may lead to administrative sanctions.

According to Clause 1, Article 133 of the 2024 Land Law, registration of land changes is mandatory for land users and people who are allocated land by the State for management.

For cases where land use rights have been registered but then change occurs, land users must carry out registration of changes. Notably, point a, clause 1, Article 133 of the 2024 Land Law clearly stipulates that the case of changing land use rights due to inheritance is one of the cases where land change registration is mandatory.

Thus, after completing the declaration or division of inheritance, the heir not only has rights to land use rights but also has the obligation to carry out procedures for registration of changes at the land registration agency to update land user information on the Certificate of Land Use Rights and cadastral records in accordance with the law.

The deadline for carrying out this procedure is also specifically stipulated by law. According to Clause 3, Article 133 of the 2024 Land Law and guiding regulations for implementation, the heir must carry out registration of changes within the legally prescribed time from the date of completion of the division of land use rights that are inherited inheritance.

Registering on time not only helps the State fully update information about land users but also ensures the legitimate rights and interests of the heirs themselves in the process of managing, using and disposing of assets.

In case the heir does not carry out registration of changes according to regulations, they may be administratively sanctioned. Specifically, Clause 2, Article 16 of Decree No. 123/2024/ND-CP stipulates that individuals who do not carry out registration of land changes in cases where registration is required will be fined from 2,000,000 VND to 3,000,000 VND.

For organizations, according to Clause 3, Article 5 of Decree No. 123/2024/ND-CP, the penalty level is equal to twice the penalty level applied to individuals, unless the decree has other regulations.

It is worth noting that monetary penalties do not mean that violators are exempted from performing the obligation to register changes. According to Clause 3, Article 16 of Decree No. 123/2024/ND-CP, the measure to remedy the consequences of this act is to force the implementation of land registration procedures or registration of land changes as prescribed.

In other words, even if the fine has been paid, the heir still has to carry out the procedure for transferring ownership on the Certificate of Land Use Rights.

Delaying or not registering for transfer of ownership after receiving inheritance not only leads to the risk of being penalized but also entails many other legal consequences.

During the time the Certificate is still in the name of the deceased, the heir will face difficulties in carrying out transactions such as transfer, donation, mortgage or capital contribution with land use rights.

In fact, many transfer dossiers are requested by competent authorities or notary organizations to be temporarily suspended to complete procedures for registration of changes before continuing to carry out transactions.

In addition, prolonging for many years may also lead to disputes between co-heirs or cause difficulties in determining land use rights when other legal relations arise.

It can be seen that current law has clearly stipulated the obligation to register changes when land use rights change due to inheritance as well as sanctions for cases of non-compliance.

Therefore, immediately after completing the procedures for declaration or division of inheritance, the heir should proactively carry out procedures for registration of changes at the land registration agency.

This not only ensures that land use rights are fully recognized by the State but also avoids the risk of being administratively sanctioned and limits disputes that may arise in the process of land use later.

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