When can security interest in land use rights be deregistered? What is the application for deregistration of security interest in land use rights in Vietnam?
Do I need to register security interests when I mortgage land use rights?
Pursuant to Clause 1, Article 25 of Decree No. 99/2022/ND-CP stipulating as follows:
Registration falling under the authority of the land registry
1. Cases subject to registration:
a) Mortgage of land use rights;
b) Mortgage of house, property on land whose ownership has been stated in the Certificate;
c) Mortgage of the project on housing construction, construction of non-residential buildings, agricultural investment project, forest development project, or other investment project that uses land and land use rights assigned by the State with land use levy imposed or leased out in the form of lump-sum payment for the entire lease period;
d) Registration of change or deregistration for the case specified at Points a, b and c of this Clause.
Thus, mortgage of land use rights is one of the cases where registration of security is required.
When can security interest in land use rights be deregistered? What is the application for deregistration of security interest in land use rights in Vietnam? (Image from the Internet)
When can security interest in land use rights be deregistered?
Pursuant to Clause 1, Article 20 of Decree No. 99/2022/ND-CP stipulating the cases in which the registrant of a security interest may submit an application for deregistration of a security interest in respect of land use rights as follows:
- As agreed between the grantor and the secured party;
- The entire secured obligation is terminated;
- The entire content or part of the content of the security contract is deregistered but the deregistered content contains the registered security interest;
- The registered security interest is replaced by another security interest as agreed between the grantor and the secured party;
- The collateral no longer exists as it is contributed as capital to a commercial legal entity or a non-commercial legal entity being a social enterprise; is replaced, transferred, consolidated, merged, mixed; assembled, manufactured or otherwise processed; is recovered, destroyed, totally lost, demolished, confiscated or in other cases as prescribed by the Civil Code and other relevant laws.
- If the collateral no longer falls into the case specified at this point but a new property arises or is replaced by a new property and this property is used to secure the performance of an obligation as agreed in the security contract or according to law, the registry shall not carry out the deregistration but to carry out the change registration according to the case specified at Points b, c, d and dd, Clause 1, Article 18 of Decree No. 99/2022/ND-CP;
- The collateral has been completely realized by the secured party in accordance with the law on performance of obligations or has been realized by a civil judgment enforcement agency in accordance with the law on performance of civil judgment enforcement;
- Property on land with annual rental payment is currently a collateral but the State appropriates the land without compensation for the property on land.
In case the property mentioned in this point has newly arisen property or replaced by new property and is exchanged for compensation by the State for property on land, the registration shall be carried out in accordance with point dd of this clause;
- The collateral is an aircraft that is no longer registered under Vietnamese nationality;
- Collateral is an annual tree that is harvested, is a temporary work that is demolished, but the registered information does not include yields or other property obtained from the annual tree harvest or obtained from demolition of the temporary work;
- The mortgagee of land use rights and property on land of land-using individuals or households being an economic organization other than credit institution becomes a foreign-invested enterprise; the mortgagee being is a Vietnamese citizen becomes a foreign citizen and does not transfer the right to receive collateral to another organization or individual that fully meets the conditions prescribed by the law of the Socialist Republic of Vietnam, unless the Land, Housing Law, other relevant laws and other regulations otherwise stipulate;
- The secured party is a legal entity dissolved in accordance with law;
- The legally effective judgment or decision of the Court requires the registry to carry out the deregistration;
- Registration of mortgage of property rights arising from a house sale contract or from a contract for the sale of other property on land has been converted to registration of house mortgage or mortgage of other property on land specified at Point b, Clause 1, Point b, Clause 2 and Clause 5, Article 26 of Decree No. 99/2022/ND-CP.
What is the application for deregistration of security interest in land use rights in Vietnam?
Pursuant to Article 33 of Decree No. 99/2022/ND-CP stipulating the application for deregistration of security interest in land use rights as follows:
- An application form, made according to Form No. 03a in the Appendix enclosed with Decree No. 99/2022/ND-CP (01 original).
- Certificate (original) in case the collateral has a Certificate.
- In case the applicant for deregistration is not the secured party and there is no signature or seal (if any) of the secured party on the application form, apart from the documents specified in Clause 1, and Clause 2 of this Article also submit the following documents (01 original or 01 certified true copy):
+ A document showing that the secured party agrees to deregister or certify that the security contract has been terminated or liquidated, or showing confirmation of the release of the security in case the applicant for deregistration is the grantor;
+ Contract or other legally effective document evidencing the lawful transfer of collateral in case the applicant for deregistration is the legal transferee of the collateral, except for cases specified in point c of this clause;
+ The auctioned asset sale contract that has been legally effective or written certification of judgment enforcement results in case the applicant for deregistration is a civil judgment enforcement agency, enforcer or; the applicant for deregistration or the purchaser of collateral in collateral realization in accordance with the law on civil judgment enforcement;
+ A competent authority's document stating that the secured party being an economic organization other than a credit institution becomes a foreign-invested enterprise or a Vietnamese citizen becomes a foreigner in the case of deregistration specified at Point k, Clause 1, Article 20 of Decree No. 99/2022/ND-CP;
+ The written certification of the competent authority on the dissolution of the legal entity in the case of deregistration specified at Point l, Clause 1, Article 20 of Decree No. 99/2022/ND-CP.
Thus, when the registrant of a security interest wants to deregister the security interest with respect to land use rights, it is necessary to prepare a dossier for deregistration of security interest for the land use right as prescribed above.
Decree No. 99/2022/ND-CP takes effect from January 15, 2023.
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