Determining the price of residential land for compensation when the State recovers land according to current Vietnamese law

Pricing principles when implementing.

Only research on land valuation to serve compensation work and not research on land valuation in general to adjust other land relationships. Accordingly, only research land valuation to determine the specific land price without researching land valuation to determine the land price framework and land price list.

5. Research methodology and methods

The thesis uses a combination of many different research methods, depending on the purpose of the thesis mentioned in the thesis. In particular, the thesis uses legal scientific perspectives and theories in Vietnam. Research methods such as analysis, statistics, comparison, history, proof, synthesis, and induction are used in combination to implement the topic.

6. Theoretical and practical significance of the thesis

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Theoretically, the thesis clarifies a number of theoretical and legal issues about determining residential land prices for compensation when the State recovers land. The thesis introduces the concept, characteristics and role of determining residential land prices in compensation activities when the State recovers land. At the same time, analyze the concept, content and factors affecting the law governing the determination of residential land prices for compensation when the State recovers land.

In terms of practice, the thesis evaluates the legal regulations on determining residential land prices for compensation when the State recovers land and the implementation of these regulations in some localities; From there, we provide complete solutions to the law on determining residential land prices for compensation when the State recovers land on the basis of current Vietnamese law.

The thesis is a scientific work with theoretical and practical significance. The thesis researches quite comprehensively and systematically the regulations on determining residential land prices for compensation when the State recovers land on the basis of current Vietnamese law, which has practical significance in land price determination activities. housing to compensate when the State recovers land. At the same time, the thesis is a useful document to improve the efficiency of determining residential land prices for compensation when the State recovers land on the basis of current Vietnamese law.

7. Structure of the thesis

In addition to the introduction, conclusion and list of references, the content of the thesis includes 3 chapters:

Chapter 1 : Some theoretical issues about residential land prices, residential land valuation, land recovery, compensation when the state recovers land.

Chapter 2 : Law and application of law on valuation of residential land for compensation when the state recovers land according to current Vietnamese law.

Chapter 3 : Improving efficiency in determining residential land prices for compensation when the state recovers land according to current Vietnamese law.

Chapter 1

THEORETICAL ISSUES ABOUT RESIDENTIAL LAND PRICES, RESIDENTIAL LAND PRICE VALUATION AND LAWS ON RESIDENTIAL LAND PRICE DETERMINATION

TO COMPENSATE WHEN THE STATE RECOVERES LAND

1.1. Theoretical issues about residential land prices and residential land valuation

1.1.1. Concept and characteristics of residential land prices

In a market economy, residential land prices are understood to represent the value of residential land use rights. In our country, land is owned by the entire people, the State is the representative owner of the entire people's land; The State allocates land to organizations, households and individuals for use, and land use rights are considered a special commodity. In Clauses 19 and 20, Article 3 of Land Law No. 45/2013/QH13 dated November 29, 2013 (hereinafter abbreviated as: Land Law 2013) stipulates: " Land price is the value of land use rights calculated per unit of land area", "The value of land use rights is the monetary value of land use rights for a specified land area within a specified period of use". From there, it can be understood: Residential land price is the value of residential land use rights expressed in money of residential land use rights for a specified land area during a specified use period, in which the use period is The use determined for residential land is long-term. The price of residential land is a composition of powerful, social, natural factors... that it has or has influence on, to create value in monetary form when successfully exchanged. Land, specifically residential land, is considered a commodity but it is a special commodity. All exchanges must follow certain orders and procedures prescribed by law.

Correct and reasonable valuation of residential land to calculate use tax, collect transfer fees, collect land use fees... will contribute to adjusting the supply and demand relationship of land, creating conditions for a market economy. development, at the same time overcoming the disadvantages of the previous land allocation and land recovery relationship and strengthening the full ownership regime.

Residential land prices according to the price framework issued by the State are the legal basis, creating conditions for the entire people's ownership of land to be mobilized according to market mechanisms. Land price brackets are issued according to classification of area, location... Land price brackets are periodically issued by the government

05 years. Based on the land price framework issued by the government, the People's Committees of provinces and centrally run cities are responsible for developing local land price lists every 5 years, which are publicly announced on January 1. 01 of the first year of the period. The People's Committees of provinces and centrally run cities will announce the 5-year land price adjustment coefficient on January 1 every year. Transactions in the land use rights market use the price frame as a reference to determine the price of the land plot. This has created conditions for residential land users participating in the land use rights market in particular and the real estate market in general to have a reference information channel, as a basis for determining residential land prices for transactions. on the market. However, the land price framework and land price list issued by the Provincial People's Committee only partly reflect the price of residential land, and do not accurately reflect the market value of the land plot, specifically the price in some areas. quite low compared to the actual market value.

In particular, in compensation work when the State recovers land, residential land prices play an extremely important role. That is the policy and measure that determines the progress of residential land recovery. Up to now, the biggest problems related to land are the compensation prices for residential land when the State recovers land for public purposes, national security and defense, and socio-economic development purposes. Our country is in the process of industrialization and modernization, so the planning is in the direction of long-term, synchronous and consistent development planning, so the State's recovery of residential land is inevitable. When the State recovers land to ensure benefits for current residential land users, the State must compensate the residential land users. However, currently, compensation for residential land when the State recovers land is often applied according to the unit price according to the Government's land price framework and the land price list issued by the Provincial People's Committee and the price is lower than the market price. . This is the main reason why people whose land is recovered do not agree with the compensation plan. As a result, land users complain for a long time, the land recovery process is congested, and the land cannot be handed over. Faced with the above situation, the State must have measures to determine more reasonable residential land prices, closer to market land prices.

* Characteristics of residential land prices

Residential land is also a type of land. Residential land prices also have the characteristics of land prices but show the uniqueness of residential land.

- Not the same in terms of expression: The price of residential land reflects the effect of residential land in economic activities. Wherever the rights to residential land are, there is the possibility of profit, as well as the price corresponding to the land. each type of benefit. Residential land is expressed through a number of rights such as: ownership right price, use right price, rental right price, mortgage right price... Thus, residential land price is expressed in many different ways, in addition to the The market price of ownership rights and use rights can also be expressed by rental rights or mortgage rights. The residential land price of a plot of land is expressed differently for each different purpose.

- Differences in time of formation: Because residential land has great individual differences, as well as the origin of its formation, it can be residential land inherited from ancestors, or it can be residential land at home. The country allocates land with collection of land use fees..., but lacks a complete market. Residential land prices are historical factors, formed under long-term influences from the past to the future, so it is difficult to compare with each other. Therefore, the work of determining the price of residential land for compensation needs to be based on the characteristics of the residential land - the land plot itself being recovered and the residential land market situation in the land recovery area, from which analysis is conducted. Specify the factors to give specific residential land prices suitable for each given time.

- Residential land price is not a monetary expression of residential land value: Land in general and residential land in particular is a special commodity, not a product of human labor, so it does not have a product price. export. High or low residential land prices depend on the demand for residential land. In the context of socio-economic development and constantly increasing population, the land fund used for residential land is limited, the difference in supply and demand balance increases land prices in both amplitude and speed. .

- Residential land prices are regional and individual: Residential land is a type of real estate. Along with the perfection of infrastructure - technology and unique characteristics in each different area, the price of residential land in different areas is different.

1.1.2. Classification of residential land

To determine accurately and reasonably the price of residential land, it is necessary to recognize and determine the correct type of residential land. According to section a, clause 2, article 13 of the 2013 Land Law, residential land belongs to the non-agricultural land group including: rural residential land and urban residential land:

Rural land : "Residential land used by households and individuals in rural areas includes land for building houses, construction of works to serve daily life, gardens and ponds in the same plot of land in the residential area." rural areas, in accordance with land use planning and rural residential area construction planning approved by competent state agencies" (Clause 1, Article 143 of the 2013 Land Law).

Urban residential land : "Urban residential land includes land for building houses, constructing works to serve daily life, gardens and ponds in the same plot of land in an urban residential area, in accordance with regulations Land use plans and urban construction plans have been approved by competent state agencies" (Clause 1, Article 144 of the 2013 Land Law).

In addition to the two types of residential land mentioned above, the 2013 Land Law has a new feature, which is also a recognition and change by the State and Government to suit the development trend and catch up with developed countries. Specifically, in Article 49, Decree No. 43/2014/ND-CP dated May 15, 2014 regulating land use regime for apartment building construction and Article 2 of Decree No. 01/2017/ND-CP dated January 6, 2017 on amending and supplementing a number of decrees detailing the implementation of the Land Law, land for construction of apartment buildings, mixed-use apartment buildings for living, offices, and commercial establishments. Commercial and service buildings (collectively referred to as apartment buildings) are defined as residential land. But unlike urban land and rural land, land for apartment construction belongs to the common use rights of owners of apartments, offices, commercial establishments, and services in the apartment building. , as for urban land, rural land belongs to the private use rights of individuals or households.

Thereby, it can be determined that there are three types of residential land: rural residential land, urban residential land and land for apartment construction with different forms of residential land use: private use and common use.

1.1.3. Concepts, characteristics and principles of residential land valuation

Asset valuation in general and residential land valuation in particular have a long history of formation and development in many countries around the world. Valuation is an objective activity that exists in the economic life of production and goods, especially in economies developed under the market mechanism. Valuation is a type of professional activity that is both economic - technical and legal, as well as social and artistic. Valuation activity is a professional service that is formed, exists and develops in association with the

The formation, existence and development of the market are essential for the operation of the market economy. Can be understood simply: Valuation is the determination of the price of assets in the market. However, in many cases there is no market to determine prices. Valuers must rely on non-market bases. Valuation is a special form of price determination: Valuation work is performed by trained, knowledgeable, experienced and highly professional professionals.

To reflect this characteristic, many scholars believe that the concept of valuation needs to be clearly defined, as a specialized term: According to the Oxford dictionary: "Valuation" is an estimate of the monetary value of an object, of an asset", "is an estimate of the current value of assets in business" . According to Professor W.Seabrooke - University of Portsmouth, UK: " Valuation is an estimate of the value of specific asset ownership rights in monetary form for a clearly defined purpose" [25 ] . According to Fred Peter Marrone - Marketing Director of AVO (Australian Valuation Association) presented in the valuation training class in Ho Chi Minh City on May 25, 1999: "Valuation is the determination of the value of real estate at a time, taking into account the nature of the real estate and the purpose of the valuation. Therefore, valuation is about applying comparative market data that you have collected and analyzed, then comparing it with the assets being appraised to form their value . Fred Peter Marrone also said: Valuation is often described as an “inexact science”. It is identified as a science because it is based on analytical work. It is “inaccurate” because it is considered only an opinion until the transaction occurs, not a proven fact. According to Professor Lim Lan Yuan - School of Construction and Real Estate - National University of Singapore: "Valuation is an art or science of estimating the value for a specific purpose, of a specific asset, at any one time, taking into account all the characteristics of the asset, as well as considering all the underlying economic factors of the market, including the types of investment options” [32].

In our country, Law on Real Estate Business No. 63/2006/QH11 dated June 29, 2006 also introduces the concept: " Real estate valuation is the activity of consulting and determining the price of a specific type of real estate." possible at a certain point in time”.

Although there may be many other definitions, the basic characteristics of valuation need to be recognized: Valuation is the work of estimating; Valuation is an activity that requires expertise; The value of assets is calculated in money; The asset being valued can be any asset, but mainly real estate; Determined at a specific time; Determined for a certain purpose; Data used directly or indirectly related to the market .

To fully and clearly generalize the above characteristics, it is necessary to have a precise definition: " Valuation is a monetary estimate with the highest reliability of the benefits that an asset can bring." for a certain subject for a certain purpose, at a certain time".

Residential land valuation is a form of applied economic analysis, which is the estimation of the value of specific residential land use rights in monetary form for a clearly defined purpose under specific and specific conditions. on a certain market with appropriate methods.

Residential land valuation is a professional activity of an economic and technical nature. It is legal, social and performed at a high level is the art of land valuation.

Residential land valuation has a close relationship with the formation and development of the real estate market.

Residential land valuation is analyzed and applied in business and commercial activities and is the basis for calculating service fees in real estate business.

Correct valuation of residential land can be done when there is complete, accurate, basic information about the owner's rights and obligations in Land Law relations, location, size, shape, type, class. land as well as land users, history, origin of residential land and assets attached to residential land.

From here, we can define residential land valuation for compensation as: Determining the specific residential land price for the purpose of replacing residential land recovered by the State in kind (residential land) or money at the time of determination. .

* Characteristics of residential land valuation for compensation

First, diversity: Each residential land recovery project is associated with a specific location and area; Therefore, they differ fundamentally in terms of natural, socio-economic conditions, as well

Determining the price of residential land for compensation when the State recovers land according to current Vietnamese law - 2

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