Circular No. 03/2007/TT-BXD supplements the implementation of Decree No. 127/2005/NĐ-CP dated October 10, 2005, guiding the implementation of Resolution No. 23/2003/QH11 dated November 26, 2003, and Resolution No. 755/2005/NQ-UBTVQH11 dated April 2, 2005, of the Standing Committee of the National Assembly regarding the handling of specific cases concerning real estate during the process of managing real estate and socialist transformation policies before July 1, 1991.

CIRCULAR

Supplementary guidance on the implementation of Decree No. 127/2005/NĐ-CP

dated October 10, 2005 of the Government guiding the implementation of Resolution

No. 23/2003/QH11 dated November 26, 2003 of the National Assembly and Resolution

No. 755/2005/NQ-UBTVQH11 dated April 2, 2005 of the Standing Committee of the National Assembly regarding the handling of specific cases concerning real estate during the implementation of policies for managing real estate and socialist transformation policies before July 1, 1991

Pursuant to Decree No. 36/2003/NĐ-CP dated April 4, 2003 of the Government stipulating the functions, tasks, powers, and organizational structure of the Ministry of Construction;

Pursuant to Decree No. 127/2005/NĐ-CP dated October 10, 2005 of the Government guiding the implementation of Resolution No. 23/2003/QH11 dated November 26, 2003 of the National Assembly and Resolution No. 755/2005/NQ-UBTVQH11 dated April 2, 2005 of the Standing Committee of the National Assembly regarding the handling of specific cases concerning real estate during the implementation of policies for managing real estate and socialist transformation policies before July 1, 1991 (hereinafter referred to collectively as Resolution No. 755/2005/NQ-UBTVQH11);

The Ministry of Construction provides supplementary guidance on the implementation of Decree No. 127/2005/NĐ-CP dated October 10, 2005 of the Government (hereinafter referred to collectively as Decree No. 127/2005/NĐ-CP) as follows:

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1. The determination of the price of houses as the basis for payment when the State requisitions houses is carried out according to the following provisions:

a) In the case where the State requisitions houses or other types of buildings that are not residential, the amount for payment shall be determined based on the area of the building at the time of requisition and the new construction cost price of Class 2 residential buildings issued by the People's Committees of provinces and centrally-administered cities at the time of payment;

b) In the case where the State requisitions villas, the amount for payment shall be determined based on the area of the villa at the time of requisition and the new construction cost price of Class 2 villas issued by the People's Committees of provinces and centrally-administered cities at the time of payment.

2. The procedures for handling real estate for which the State has made a requisition decision are carried out according to the following provisions:

a) In the case where there is a requisition decision and the State has paid the money (including cases where the owner has received the money or the owner has not received the money and the amount has been deposited in a bank), but by the date Resolution No. 755/2005/NQ-UBTVQH11 comes into effect, the owner is still directly using the real estate, the provincial People's Committee completes the legal procedures to establish full ownership according to Article 3 of Decree No. 127/2005/NĐ-CP. The person currently using the real estate may enter into a lease agreement with the State; if the housing falls within the scope of sale, they will be allowed to purchase it according to the provisions of Decree No. 61/CP dated July 5, 1994 of the Government on the sale and trading of housing.

For cases where the money for requisition has been deposited in a bank, the bank receiving the deposit is responsible for paying both the principal and interest according to the regulations on non-term deposits to the owner or their legitimate heirs;

b) In the case where there is a requisition decision but the State has not yet paid the money, and by the date Resolution No. 755/2005/NQ-UBTVQH11 comes into effect, the State has not managed or allocated the use of the real estate, the previous requisition procedure will not continue to be implemented, and the provisions of Article 5 of Decree No. 127/2005/NĐ-CP will be applied to handle the real estate.

3. The determination of transactions involving the immediate transfer of real estate through sales, gifts, or exchanges stipulated in Clause 3, Article 5 of Decree No. 127/2005/NĐ-CP is applicable in cases where these transactions have been established in reality (the seller has received the full payment and transferred the property to the buyer for use; the donor has transferred the real estate to the recipient for use; the parties involved in the exchange have transferred the real estate to each other for use). The person currently using the real estate must provide proof of the sale, exchange, or gift transaction and the real estate must not be disputed over ownership.

4. The handling of real estate with inheritance papers stipulated in Clause 4, Article 5 of Decree No. 127/2005/NĐ-CP is regulated as follows:

a) In the case where the person currently using the real estate has one of the following documents, they will be granted a Certificate of Ownership of House and Land Use Right by the competent state agency:

a.1. A valid will;

a.2. A record of inheritance asset division;

a.3. A judgment or decision of the Court that has taken legal effect.

b) In the case where the person currently using the real estate does not have the documents specified in point a above but can prove that they are an heir, they will be granted a Certificate of Ownership of House and Land Use Right for the area of real estate they are currently using by the competent state agency.

5. This Circular takes effect 15 days after its publication in the Official Gazette. Any previous regulations contrary to this Circular are abolished.

During the implementation, if there are difficulties, please send comments to the Ministry of Construction for amendment or supplementation within the authority or for submission to the Prime Minister for decision./.

- Prime Minister, Deputy Prime Ministers;

- Central agencies of mass organizations;

- National Academy of Administration;