Conditions for Mortgaging Housing Formed in the Future

Conditions for Mortgage

According to Circular 26/2015/TT-NHNN, the conditions for mortgaging housing construction investment projects and future-formed houses at credit institutions are stipulated as follows:

Regarding the investor:

The investor is allowed to mortgage future-formed houses belonging to housing construction investment projects when the following conditions are fully met:

- Having project documents and project technical designs approved;- Having a Certificate or a decision on land allocation, land lease issued by a competent state agency;- The housing construction investment project belongs to:- A new construction investment project or the renovation of an independent housing building or a housing complex;- A housing area construction investment project with a synchronized technical and social infrastructure system in rural areas;- An urban area construction investment project or a mixed-use land project that allocates land for house construction;- A project to construct mixed-purpose buildings for living and business.

In addition to the above conditions, the following five conditions must also be met:

- The mortgaged house must have its foundation completed as prescribed by construction law;- It is not part of the project that the investor has mortgaged as stipulated in Clause 1, Article 7 of this Circular;- It is not subject to any ownership disputes, complaints, or lawsuits;- It is not under enforcement or administrative decision implementation according to the law by competent state agencies;- It is not subject to land recovery, clearance, or demolition notices issued by competent state agencies.

Regarding organizations and individuals:

The 2014 Housing Law stipulates: Organizations and individuals constructing future-formed houses on their lawful residential parcels or within housing construction investment projects of investors are allowed to mortgage these houses at operating credit institutions in Vietnam to raise funds for housing construction or to purchase the houses themselves, subject to the regulations in Circular 26 as follows:

For future-formed houses built on lawful residential parcels, the following documents are required:

1. Documents certifying lawful homestead land use rights according to land law;
2. Construction permits, if required by relevant laws;
3. Conditions such as: No ownership disputes, complaints, or lawsuits; Not under enforcement or administrative decision implementation; Not subject to land recovery, clearance, or demolition notices.

Future-formed houses purchased from investors within housing construction investment projects must have:

1. Housing purchase contracts signed with the investor;
2. Transfer documents of the housing purchase contract if the transferee according to the purchase contract;
3. Documents proving payment to the investor according to the agreed schedule in the housing purchase contract;
4. No complaints, lawsuits, or disputes regarding the housing purchase contract or the contract transfer;
5. Meeting additional conditions such as: Not under enforcement or administrative decision implementation and not subject to land recovery, clearance, or demolition notices by competent state agencies.

Mortgage Documents

- Mortgage documents for future-formed houses of investors within housing construction investment projects include:1. Project documents, approved project technical designs;2. Certificate or decision on land allocation, land lease issued by a competent state agency (original copy);3. Mortgage contract compliant with legal regulations;4. Documents proving the completion of the foundation according to construction law;5. Other documents (if any);- Mortgage documents for future-formed houses purchased from investors within housing construction investment projects include:1. Housing purchase contracts signed between the mortgagor and the investor compliant with housing law (original copy);2. Transfer documents of the housing purchase contract compliant with housing law if the mortgagor is the contract transferee (original copy);3. Documents proving payment to the investor according to the agreed schedule in the housing purchase contract (original copy);4. Mortgage contract compliant with legal regulations;5. Other documents (if any).- Mortgage documents for future-formed houses of organizations, individuals built on their lawful residential parcels include:1. Documents certifying lawful homestead land use rights according to land law (original copy);2. Construction permits if required by construction law;3. Mortgage contract compliant with legal regulations;4. Other documents (if any).

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