Can residential land be mortgaged to borrow money in Vietnam?

Can residential land be mortgaged to borrow money in Vietnam?

Pursuant to Clause 1, Article 179 of the 2013 Land Law stipulating rights and obligations of households and individuals using land, according to which:

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.

According to this Article, you can 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.

Is the mortgaged property inherited in Vietnam? 

Pursuant to Clause 8, Article 40 of Law on Notary 2014 on notarization of ready-made contracts and transactions, according to which:

8. If agreeing with the whole contents of the draft contract or transaction, the notarization requester shall sign every page of the draft. The notary shall request the notarization requester to produce the originals of the papers specified in Clause 1 of this Article for comparison before writing testimonies and signing every page of the contract or transaction.

Thus, when wanting to divide the inheritance, the co-heirs must present the original certificate of land use right before the Notary Public signs the written agreement on division of the inheritance in Vietnam.

Best Regards!