Circular No. 36/2014/TT-BTNMT Detailing Methods of Land Valuation; Formulation and Adjustment of Land Price Lists; Specific Land Valuation and Consultancy on Land Price Determination

Issuing authority and legal basis

Circular No. 36/2014/TT-BTNMT is issued by the Minister of Natural Resources and Environment (Ministry of Natural Resources and Environment) on the proposal of the General Department of Land Administration and the Department of Legal Affairs. It is promulgated pursuant principally to the Land Law dated 29 November 2013 and the Government's Decree No. 44/2014/ND-CP dated 15 May 2014 on Land price, and elaborates the provisions of that Decree. The excerpt supplied does not state the promulgation date or the effective date, and does not name any instrument that this Circular amends, replaces or supersedes.

Scope and subjects of application

Article 1 provides that the Circular details: methods of land valuation; formulation and adjustment of land price lists; specific land prices; and consultancy on land price determination. Article 2 provides that subjects of application are state bodies performing land administration functions and other organizations and individuals concerned with the matters regulated. The Circular is structured in Chapters, including General Provisions (Chapter I) and subsequent chapters on valuation methods, land price lists, specific land prices and consultancy and issuance of Certificate of eligibility (chung chi) for land valuation.

Land valuation methods and selection

Articles 3 to 8 prescribe five valuation methods and the criteria for selecting among them. The methods are the comparison method, the deduction method, the income-based method, the surplus-based method and the land price adjustment coefficient method. For each method the Circular prescribes the order and procedures and contents for investigation, collection and analysis of market land price information and for calculation (for example, steps for the deduction method referring to Article 3, determination of current value of assets attached to land, and examples of application; steps for the income-based method referring to Article 4; and for the surplus-based method and the land price adjustment coefficient method referring to Article 3 and Article 4 of Decree No. 44/2014/ND-CP and Articles 3, 4, 5, 6 and 7 of this Circular). Article 8 requires selection of the appropriate method on the basis of collected information and in accordance with Articles 4 and 5 of Decree No. 44/2014/ND-CP, with checking, comparison and cross-reference between results.

Formulation and adjustment of land price lists

Articles 9 to 27 regulate the content and process for formulating and adjusting land price lists of provincial-level People's Committees. Article 9 provides that on the basis of land valuation principles in Article 112 of the Land Law and the valuation methods in Decree No. 44/2014/ND-CP, the provincial-level People's Committee formulates Price Lists in accordance with Articles 11 and 14 of that Decree, including Price Lists for urban and rural land and additional Price Lists where needed.

The process includes: formulation of a project for building the land price list (Article 10); preparation including establishment of a Steering Committee (Article 11); determination of commune classification, urban classification, zones and land position classification (Articles 12-15); investigation, survey and collection of market land price information and other information on parcels (Article 16) with reference to Article 4 of Decree No. 44/2014/ND-CP and Article 3 of this Circular; synthesis of results (Articles 17-18); construction of the land price list by land position classification and handling of prices in adjacent areas under Article 13 of Decree No. 44/2014/ND-CP (Article 19); tham dinh of the draft by the Department of Natural Resources and Environment (Article 20); completion and submission to the provincial-level People's Council for adoption under Article 12 of Decree No. 44/2014/ND-CP, and promulgation by the provincial-level People's Committee (Article 21). Articles 22 to 27 provide a parallel, streamlined procedure for adjustment of the land price list under Article 14 of Decree No. 44/2014/ND-CP, including focused investigation of price fluctuations, synthesis, construction of the adjusted list, tham dinh, and submission to the Standing Committee of the People's Council and completion.

Specific land prices and consultancy on price determination

Articles 28 to 36 regulate specific land prices and hiring of consultancy organizations. This includes: planning of specific land valuation on the basis of land use plans (Article 28); preparation for implementation (Article 29); investigation, synthesis and analysis of information on the Land parcel and market land prices under Article 4 of Decree No. 44/2014/ND-CP and Articles 3, 4, 5 and 6 of this Circular (Article 30); tham dinh of the land price plan by the Department of Natural Resources and Environment (Article 31); completion and submission to the provincial-level People's Committee for decision under Article 16 of Decree No. 44/2014/ND-CP within no more than 05 days (Article 32); and determination of specific land prices by the land price adjustment coefficient method under Article 18 of Decree No. 44/2014/ND-CP and Article 7 of this Circular, including investigation, construction of the adjustment coefficient and local regulation by the provincial-level People's Committee (Article 33).

Articles 34 to 36 regulate selection of organizations with the function of consultancy on land price determination, signing of lease contracts with such organizations (Contract), and the order and procedures for grant of the Certificate of eligibility (chung chi) for land valuation.

Effect and transition

The excerpt does not reproduce the final articles on effect, transition or implementation organization. No effective date, expiry date, or repealed or replaced instrument is visible in the excerpt. As a detailing Circular for Decree No. 44/2014/ND-CP, it applies together with the Land Law 2013 and that Decree.