Is it possible to rent out land that is being mortgaged in Vietnam?

Is it possible to rent out land that is being mortgaged in Vietnam?

I lent money from a bank and used my land to mortgage. However, I also want to rent out this land to earn extra income. In this case, am I allowed to rent out the land?

Answer:

Pursuant to Article 321 of the Civil Code in 2015 stipulating rights of mortgagor as follows:

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- Sell or replace mortgaged property being goods rotating during the production and business process. In the case of a sale of mortgaged property being goods rotating during the production and business process, the right to require the purchaser to pay money, the proceeds received or the assets formed from the proceeds received shall form the mortgaged property in substitution for the property which was sold.

+ When a warehouse is mortgaged, the mortgagor may substitute goods in the warehouse but must ensure the value of the goods in the warehouse remains the value agreed.

- Sell, exchange or give mortgaged property not being goods rotating during the production and business process with the consent of the mortgagee or as prescribed by law.

- Lease or lend the mortgaged property provided that notice must be provided to the lessee and the borrower that the property is being mortgaged and that the mortgagee must also be notified that such notice has been provided.

According to the regulations above, you have the right to rent out the land that is being mortgaged at the bank. However, you must notify the mortgagee. In this case, the bank is the mortgagee of your land use rights.

Is it possible to rent out land that is being mortgaged in Vietnam? - Source: Internet

Can a car that is being mortgaged to a bank in Vietnam be sold again?

I mortgaged my car to the bank to borrow money. Now, I want to sell this car to buy another car. Is it possible? Thank you!

Answer:

Pursuant to Article 320 of the Civil Code in 2015 stipulating obligations of mortgagor as follows:

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- Provide information about the actual condition of the mortgaged property to for the mortgagee.

- Deliver the mortgaged property to the mortgagee for realization in one of the cases prescribed in Article 299 of this Code.

- Notify the mortgagee of any third person rights with respect to the mortgaged property (if any). In the case of failure to provide such notice, the mortgagee shall have the right to cancel the contract of mortgage of property and demand compensation for damage or the right to maintain the contract and agree on the rights of the third person with respect to the mortgaged property.

- Do not sell, exchange or give the mortgaged property, except in the cases provided in Clauses 4 and 5 of Article 321 of this Code.

According to the regulations above, the mortgagor is obligated not to sell the mortgaged property, except in the case where the mortgaged property is a commodity circulating in the production and business process, is agreed by the mortgagee or is stipulated by law.

Therefore, in your case, if you do not have the consent of the mortgagee, you are not allowed to sell the car that is being mortgaged to the bank.

Can the mortgage documents in Vietnam be mortgaged again?

I have mortgaged my car documents to a friend to borrow money. Can the mortgagee take those documents to mortgage again?

Answer:

Pursuant to Article 322 of the Civil Code in 2015 stipulating obligations of mortgagees as follows:

1. Where the parties agree that the mortgagee will hold the documents relating to the mortgaged property, to return to the mortgagor such documents upon termination of the mortgage.

2. Follow procedures for realization of mortgaged property in accordance with regulations of law.

Pursuant to Article 323 of the Civil Code in 2015 stipulating rights of mortgagees as follows:

1. Examine and inspect directly the mortgaged property provided that such examination and inspection does not hinder or cause difficulty to the use and exploitation of the mortgaged property.

2. Require the mortgagor to provide information on the current status of the mortgaged property.

3. Require the mortgagor to apply necessary measures to preserve the property and the value of the property if there is a danger that use and exploitation of the mortgaged property will cause loss of value or depreciation in value of the property.

4. Conduct the registration of mortgage as prescribed by law.

5. Require the mortgagor or a third person holding the mortgaged property to deliver it to the mortgagee for realization if, upon expiry of the term for fulfillment of the obligation, the obligor has failed to perform or performed incorrectly the obligation.

6. Hold documents related to mortgaged property as agreed by parties, unless otherwise prescribed by law

7. Follow procedures for realization of mortgaged property as prescribed in Article 299 of this Code.

According to the regulations above, the mortgagee only has the right to keep the documents related to the mortgaged property. In case you want to mortgage these documents, you need to have the consent of the mortgagor. Therefore, the mortgagee cannot arbitrarily take your car documents to mortgage again.

Best regards!