Principles of registration for mortgage of land use rights and assets attached to land in Vietnam

Individuals, juridical persons, households, branches of Land Registration Offices and Land Registration Offices affiliated to Departments of Natural Resources and Environment (hereinafter referred to as “land registration offices”) when registering for mortgage of land use rights or assets attached to land must comply with the principles specified in Article 5 of Circular No. 07/2019/TT-BTP of the Ministry of Justice of Vietnam, specifically as follows:

- Land registration offices shall proceed with mortgage registration specified in Article 4 of this Circular of applicants as specified in Clause 1 Article 8 of Decree No. 102/2017/NĐ-CP of Vietnam’s Government and shall only proceed with registration for mortgage of land use rights, assets attached to land in case mortgagors are persons holding land use rights or owners of assets attached to land. Parties to mortgage agreements must be responsible for details of the agreements on value of collateral, secure obligations, assurance of civil obligation satisfaction of mortgagors or other persons as specified in Clause 3 Article 4 of this Circular and other relevant regulations of civil laws; details of the agreements on collateral other than land use rights, assets attached to land and other categories that both parties are permitted to enter into agreement on as per the law.

- In case a person has registered for mortgage of property rights arising from a home purchase agreement, he/she cannot register for mortgage of that off-the-plan house; or if he/she has registered for mortgage of an off-the-plan house, he/she cannot register for mortgage of property rights arising from a home purchase agreement.

- In case a project developer has mortgaged and registered for mortgage or investment projects for construction of houses or off-the-plan houses, before selling houses in the projects, he/she must apply to revise mortgaged contents to withdraw collateral unless the project developer, buyer and mortgagee agree otherwise.

- Land registration offices shall proceed with registration for mortgage of off-the-plan assets attached to land by acknowledging registration contents according to information declared in applications. Applicants must be legally responsible for the legality, truthfulness and accuracy of declared information and of documents and papers in applications.

View more details at: Circular No. 07/2019/TT-BTP of the Ministry of Justice of Vietnam takes effect from January 10, 2020.

Thu Ba

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