Circular No. 36/2006/TT-BTC guides on conditions and procedures for issuing permits and registering activities related to land price consultancy services.

CIRCULAR

Guidelines on conditions and procedures for issuing permits and registering activities

to provide consultancy services on land valuation

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Pursuant to Decree No. 181/2004/NĐ-CP dated October 29, 2004 of the Government on implementing the Land Law;

Pursuant to Decree No. 188/2004/NĐ-CP dated November 16, 2004 of the Government on methods for determining land prices and price ranges for various types of land;

Pursuant to Decree No. 101/2005/NĐ-CP dated August 3, 2005 of the Government on appraisal;

After reaching consensus with the Ministry of Natural Resources and Environment, the Ministry of Finance provides guidance on implementing consultancy services on land valuation as follows:

I. SCOPE OF APPLICATION

This Circular guides the conditions and procedures for issuing permits and registering activities to provide consultancy services on land valuation.

II. SPECIFIC PROVISIONS

1. Content of consultancy services on land valuation

1.1. Content of consultancy services on land valuation

a) Based on principles and methods for determining land prices as prescribed by law, provide services to determine land prices according to the requirements of organizations, households, and individuals.

b) Based on information about land prices for various types of land as stipulated by the State and land transfer prices on the market as required by organizations, households, and individuals.

c) Provide analysis and forecasting results of the movement of prices for various types of land to organizations and individuals as required.

1.2. Consultancy service contracts on land valuation

Enterprises providing consultancy services on land valuation and organizations or individuals using such services must express their agreements and commitments through consultancy service contracts in accordance with the provisions of law.

A consultancy service contract on land valuation includes the following main contents:

a) Name, address, telephone number, fax number, email address of the land valuation consultancy organization and the service user (customer).

b) Requirements for determining the price of plot number... on map number... Purpose of land valuation consultancy.

c) Rights and obligations of the land valuation consultancy organization.

d) Obligations and rights of the customer.

e) Price of consultancy service on land valuation.

g) Payment method and payment deadline.

h) Applicable laws and dispute resolution methods.

i) Termination of the contract and responsibilities of the parties upon termination of the contract.

k) Conditions and effectiveness of the contract.

l) Duration of the contract and procedures for terminating the contract.

m) Other agreements (if any).

1.3. In specific cases, if customers need to supplement additional content agreed upon by both parties, adjust or supplement other contract contents appropriately, but must comply with the provisions of law regarding economic contracts.

2. Principles of consultancy services on land valuation

Consultancy services on land valuation shall be conducted in accordance with the following principles:

2.1. Comply strictly with the provisions of law on consultancy activities, appraisal, and land valuation.

2.2. Be responsible under the law for all professional activities.

2.3. Adhere to the principles and methods for determining land prices as prescribed by law.

2.4. Ensure the independence, honesty, objectivity, and scientific nature of consultancy services on land valuation.

2.5. Maintain confidentiality of information received from customers requesting consultancy services on land valuation during the provision of such services, except where the customer agrees or the law provides otherwise.

3. Conditions for consultancy services on land valuation

3.1. Appraisal enterprises and enterprises with appraisal functions established and operating in accordance with the provisions of law are eligible to conduct consultancy services on land valuation.

Foreign appraisal organizations that have established branches in Vietnam in accordance with the Law on Trade, relevant laws, and regulations of the Ministry of Finance to engage in appraisal activities may conduct consultancy services on land valuation.

Foreign appraisal organizations not yet established branches in Vietnam, if they carry out appraisals in Vietnam in accordance with Vietnamese appraisal laws, may conduct consultancy services on land valuation.

3.2. Enterprises engaged in real estate consultancy, real estate trading, and brokerage activities in compliance with the provisions of law on enterprises, if they wish to conduct consultancy services on land valuation, must meet the following conditions:

- Have at least three land valuation appraisers with valid appraisal licenses, including the legal representative of the enterprise who must be a land valuation appraiser with a valid license.

The owner of a private appraisal enterprise must be a land valuation appraiser with a valid license; one land valuation appraiser can only own one private appraisal enterprise.

The general partners of a limited liability appraisal company must be land valuation appraisers with valid licenses; one land valuation appraiser with a valid license can only be a general partner of one limited liability appraisal company.

- Register with the business registration authority to provide consultancy services on land valuation and obtain supplementary functions for consultancy services on land valuation in the business registration certificate from the competent business registration authority.

4. Procedures for issuing permits and registering consultancy services on land valuation

4.1. Conditions for issuing permits

Real estate consultancy enterprises, real estate trading, and brokerage enterprises that meet the conditions stipulated in Point 3.2, Section 3, Part II of this Circular and submit registration documents for consultancy services on land valuation will be considered for supplementary functions for appraisal in the business registration certificate to conduct consultancy services on land valuation.

Appraisal enterprises and enterprises with appraisal functions (including foreign appraisal organizations) stipulated in Item 3.1, Point 3 of Section II of this Circular, which have been established in accordance with the law and obtained permits or registrations for appraisal services from competent authorities, do not need to register for consultancy services on land valuation.

4.2. Procedure for issuing permits

The procedure for registering to conduct consultancy services on land valuation in accordance with the law on enterprises.

Within thirty days from the date of issuance of the business registration certificate, enterprises providing consultancy on land prices must notify in writing to the Ministry of Finance (Price Management Department) along with a certified copy of the following documents: Business Registration Certificate, Decision on Establishment of the Enterprise, and a list of registered valuation experts at the enterprise.

5. Documents for registering consultancy on land prices

5.1 - Enterprises engaged in real estate consultancy, trading, and brokerage, if organizing consultancy on land prices, shall submit the business registration documents to the competent registration authority requesting to supplement the appraisal function in the business registration certificate.

5.2 - The contents of the business registration documents shall be implemented in accordance with the laws on enterprises and the following provisions:

- A request for business registration (including consultancy on land prices) according to a unified form prescribed by the competent registration authority in accordance with the law on enterprises.

- A list of price valuers and certified copies (with notarization) of the valuer cards still valid of the price valuers who have registered their practice at the enterprise.

- Certified copies (with notarization) of labor contracts between the enterprise and the price valuers or decisions on hiring labor for the price valuers.

6. Rights of enterprises providing consultancy on land prices

- Negotiate and sign consultancy contracts on land prices.

- Request organizations and individuals who have signed consultancy contracts on land prices to provide necessary information and documents for the implementation of the consultancy contract.

- Collect consultancy service fees according to the agreement recorded in the consultancy contract.

- Cancel or unilaterally suspend the performance of the consultancy contract and demand compensation for damages in case the service user violates the commitments made in the consultancy contract.

- Hire specialists to perform the consultancy contract on land prices.

- Participate in domestic and international professional associations.

- Other rights as stipulated by law.

7. Obligations of enterprises providing consultancy on land prices

- Adhere to the principles of consultancy on land prices.

- Fully implement all contents agreed upon in the consultancy contract on land prices.

- Compensate for losses caused by the service user when violating the commitments made in the consultancy contract. The resolution of compensation for losses shall be carried out in accordance with the law.

- Implement professional liability insurance in accordance with current laws on professional liability insurance for appraisals.

- Bear responsibility for managing the professional activities of valuers working for the enterprise; report to the Ministry of Finance (Price Management Department) the number and names of valuers registered for practice at the enterprise. There is a responsibility to promptly report changes regarding valuers or violations of the law by valuers at the enterprise.

- Fully fulfill financial obligations as prescribed by law.

- Fulfill other obligations as prescribed by law.

8. Conditions for individuals practicing consultancy on land prices

Individuals practicing consultancy on land prices must be price valuers holding a price valuer card issued by the Ministry of Finance (for foreign price valuers, the professional qualification certificate issued by a foreign organization authorized by the Vietnamese Ministry of Finance is recognized), who have registered their practice as price valuers and are currently working at organizations and enterprises permitted to engage in price consultancy.

The registration of practice as a price valuer by price valuers shall be carried out in accordance with Circular No. 17/2006/TT-BTC dated March 13, 2006, of the Ministry of Finance guiding the implementation of Decree No. 101/2005/NĐ-CP dated August 3, 2005, of the Government on Appraisal.

Price valuers practicing consultancy on land prices must comply with the current legal provisions on conditions for practice, rights and obligations of price valuers, and the professional ethics of price valuers.

III. IMPLEMENTATION

1. This Circular takes effect fifteen days from the date of publication in the Official Gazette.

2. Relevant Ministries, the Price Management Department - Ministry of Finance, People's Committees of provinces and centrally-administered cities shall instruct relevant departments to guide consulting organizations on land prices to implement this Circular.

3. State management of land price consultancy, handling disputes over land price consultancy shall be applied in accordance with Articles 21 and 22 of Chapter IV: State Management of Appraisal, Article 23 of Chapter V: Handling Disputes over Appraisal stipulated in Decree No. 101/2005/NĐ-CP dated August 3, 2005, of the Government on Appraisal.

In the process of implementing this Circular, if any difficulties arise, please report to the Ministry of Finance for guidance on resolution.