Debates on Land use rights of “Commercial Lots” in Vietnam
Quach Ngoc Lan,
Lecturer, Faculty of International Studies, Hanoi University
Abstract
The commercial lots are a new real estate product in Vietnam that attracted property buyers in the last few years. Despite its rapid development, the legal status of this property is confusing among the authorities, real estate developers and property buyers. Various legal interpretations caused economic damages and violated rights of property buyers.
The case of Vinhomes Ocean Park Gia Lam revealed legal challenges and its consequences to the stake holders. By empirical study with observation, note-taking, and textual analysis of Vietnam’s Real estate law, government reports and documents and sales contract, this paper aims to identify the legal terminology differences and legal challenges that customers may take when buying commercial lots therefore provides various legal recommendations to protect the property buyers as well as foster a fair and sustainable real estate business in Vietnam.
This paper concludes that the arbitrary use of new terms without a clear legal basis can mislead property buyers, who may not receive their rightful entitlements despite fulfilling payment obligations. In addition, the lack of clear legal definitions for terms related to land use classification created confusion and inconsistencies in property transactions and inferior values. More importantly, there is a conflict between the “common use” designation of land and the “separate ownership” of constructed properties, leading to disputes over land use rights and property ownership. This confusion led to tremendous consequences, including uncertified land use rights for property buyers leading to legal disputes among key actors, financial losses and other legal risks for customers, market instability and potential for protests and social instability.
As a result, there should be clear and standardized legal definitions, consistent housing terminology in law, and alignment of land use designations with property ownership rights to ensure transparency and fairness in the real estate market.
Keyword: housing terminology, housing law, land law, real estate business, land use rights, Vietnam.
DOI link – https://doi.org/10.69758/GIMRJ/2510S01V13P001
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