Can households in Vietnam mortgage land parcels leased by the State with a term of 50 years and one-off rental payment at commercial banks?
- Can households in Vietnam mortgage land parcels leased by the State with a term of 50 years and one-off rental payment at commercial banks?
- Is it required to have signatures of family members when mortgaging land parcels leased by the State with a term of 50 years and one-off rental payment in Vietnam?
- In case there is a house on a mortgaged land parcel, shall the house be considered as a part of the mortgaged property in Vietnam?
Can households in Vietnam mortgage land parcels leased by the State with a term of 50 years and one-off rental payment at commercial banks?
Pursuant to Clause 1, Article 179 of the Land Law 2013, the rights and obligations of households and individuals using land are as follows:
Rights and obligations of households and individuals using land
1. Households or individuals that use agricultural land allocated by the State within land use quotas, are allocated land with land use levy or leased with full one-off rental payment for the entire lease period, have land use rights recognized by the State, or obtain land through exchange, transfer, inheritance or donation, have the following rights and obligations:
a/ The general rights and obligations prescribed in Article 166 and Article 170 of this Law;
b/ To exchange agricultural land use rights with other households and individuals within the same commune, ward or township;
c/ To transfer land use rights in accordance with law;
d/ To lease land use rights to other organizations, households, individuals or overseas Vietnamese investing in Vietnam;
e/ Individuals using land are entitled to bequeath their land use rights in accordance with their will or law.
If any member of a household to which land has been allocated by die State dies, land use rights of that member may be inherited in accordance with his/her will or law.
If the heir is an overseas Vietnamese who falls into the category defined in Clause 1, Article 186 of this Law, he/she is entitled to inherit land use rights. Otherwise, he/she is only entitled to receive the value of the inherited land use rights;
e/ To donate land use rights under Point c, Clause 2, Article 174 of this Law and to donate land use rights to households, individuals or overseas Vietnamese who fall into the category defined in Clause 1, Article 186 of this Law;
g/ To mortgage land use rights at credit institutions which are licensed to operate in Vietnam, or at other economic organizations or individuals in accordance with law;
h/ To contribute land use rights as capital to organizations, households, individuals or overseas Vietnamese for cooperation in production or business;
i/ In case the land is subject to recovery for project implementation, land users are entitled to invest on land by their own or to lease land use rights to the investor or to contribute land use rights as capital to the investor for project implementation in accordance with the Government’s regulations.
Thus, households in Vietnam can mortgage land parcels leased by the State with a term of 50 years and one-off rental payment at commercial banks.
Is it required to have signatures of family members when mortgaging land parcels leased by the State with a term of 50 years and one-off rental payment in Vietnam?
According to Article 212 of the 2015 Civil Code on multiple ownership between family members as follows:
1. Property of family members living together includes property that they contributed or made together and other properties whose ownership rights are established in accordance with this Code and relevant laws.
2. The possession, use and disposal of multiple ownership property by family members shall be conducted as mutually agreed. With respect to disposal of an immovable property, a movable property required registration, or a property being the primary income of the family, the agreement between all family members being adults with full legal capacity is required, unless otherwise prescribed by law.
If there is no agreement, the regulations on ownership in common prescribed in this Code and relevant laws shall apply, except for the case prescribed in Article 213 of this Code.
Thus, when mortgaging land parcels leased by the State with a term of 50 years and one-off rental payment, signatures of family members with full legal capacity are required.
In case there is a house on a mortgaged land parcel, shall the house be considered as a part of the mortgaged property in Vietnam?
Article 318 of the 2015 Civil Code provides for mortgaged property as follows:
- Where entire immovable property or moveable property having auxiliary objects is mortgaged, such auxiliary objects shall also form part of the mortgaged property, unless otherwise agreed.
- Where a portion of immovable property or moveable property having auxiliary objects is mortgaged, such auxiliary objects shall also form part of the mortgaged property, unless otherwise agreed by the parties.
- With respect to mortgage on land use rights that property on land is owned by the mortgagor, such property shall also be part of the mortgaged property, unless otherwise agreed.
- Where mortgaged property is insured, the mortgagee must notify the insurer that the insured property is being mortgaged. The insurer shall pay the insured sum directly to the mortgagee upon occurrence of an insured event.
If the mortgagee failed to notify the insurer that the insured property was mortgaged, the insurer shall pay the insured sum in accordance with the insurance contract and the mortgagor shall be obliged to make payment to the mortgagee.
Thus, unless otherwise agreed, the house is a part of the mortgaged property.
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