What are rights and obligations of investors of off-plan housing guarantee in Vietnam?

What are rights and obligations of investors of off-plan housing guarantee in Vietnam?

Pursuant to Clause 10 Article 13 of the Circular 11/2022/TT-NHNN (takes effect from 01/04/2023) stipulating rights and obligations of investors of off-plan housing guarantee in Vietnam as follows:

 10. The investor shall have the following rights and obligations:

a) The investor is entitled to:

Request the commercial bank to issue the letter of guarantee to all buyers of the off-plan housing project guaranteed by the bank during the validity period of the contract for off-plan housing guarantee.

b) The investor is obliged to:

(i) send the letter of guarantee issued by the commercial bank to the buyers after receiving it from the commercial bank (as agreed);

(ii) In case the commercial bank and the investor have agreed to terminate the contract for off-plan housing guarantee before its expiry date, within the following working day, the investor shall post a notice on its website (if available) and send a written notice to the housing authority of province where the investor’s housing project is located;

(iii) inform the commercial bank of the accurate amount received from each buyer from the effective date of the letter of guarantee.

What are rights of buyers of off-plan housing guarantee in Vietnam?

Pursuant to Clause 11 and 12, Article 13 of the Circular 11/2022/TT-NHNN (takes effect from 01/04/2023) stipulating rights of buyers of off-plan housing guarantee in Vietnam as follows:

11. A buyer is entitled to:

a) receive the letter of guarantee issued by the commercial bank directly from the commercial bank or the investor within the validity period of the contract for off-plan housing guarantee and before the planned house transfer date specified in the purchase contract or lease-purchase contract;

b) request the commercial bank to fulfill guarantee obligations in respect of the investor’s financial obligation by submitting the letter of guarantee and relevant documents (if any).

12. Apart from the provisions of this Article, other contents about the off-plan housing guarantee shall comply with relevant regulations in this Circular.

What documents are included in the application for issuance of bank guarantee in Vietnam?

Pursuant to Article 14 of the Circular 11/2022/TT-NHNN (takes effect from 01/04/2023) stipulating the application for issuance of bank guarantee in Vietnam as follows:

1. An application for issuance of guarantee shall, inter alia, include the following primary documents:

a) The application form;

b) Documents about customers;

c) Documents on guaranteed obligations;

d) Documents on security (if any);

dd) Documents about other related parties (if any).

2. Based on the actual status of guarantee operations of each credit institution or FBB and specific characteristics of each customer group, each method of issuing guarantee (traditional method or e-guarantee method), the credit institution or FBB shall provide specific guidelines on documents to be submitted to the credit institution or FBB for their consideration and issuance of guarantee.

What are regulations on bank guarantee issuance agreement in Vietnam?

Pursuant to Article 15 of the Circular 11/2022/TT-NHNN (takes effect from 01/04/2023) stipulating bank guarantee issuance agreement in Vietnam as follows:

1. In order to issue guarantee to a customer, the credit institution or FBB and the customer are required to enter into a guarantee issuance agreement. If the guarantee is issued on the basis of a counter guarantee, the guarantor shall not be obliged to enter into the guarantee issuance agreement with the counter-guarantor.

2. A guarantee issuance agreement shall have the following contents:

a) Applicable laws. Where no applicable laws is specified, this means that the parties have agreed to apply the law of Vietnam;

b) Information about the parties of the guarantee relationship;

c) Guaranteed obligations;

d) Guarantee sum and currency;

dd) Form of guarantee commitment issuance;

e) Conditions for fulfillment of guarantee obligations;

g) Rights and obligations of the parties;

h) Guarantee service fee;

i) Agreement on debt incurrence, interest rate charged on the sum paid and obligation to repay the debt when guarantee obligations are required to be fulfilled;

k) Reference number, signing date and validity period of the guarantee issuance agreement;

l) Dispute settlement;

m) Other contents which must not be contrary to regulations of law.

3. Any modification or annulment of contents of the guarantee issuance agreement shall be agreed upon and decided by relevant parties in compliance with regulations of law.

Best regards!