Vietnam: Guiding the procedures for issuing guarantee for off-plan houses

According to Circular No. 13/2017/TT-NHNN of the State Bank of Vietnam, procedures for issuing guarantee for off-plan houses are as follows:

- The commercial bank shall consider, appraise and decide to issue guarantee to the investor;

- The commercial bank and the investor shall conclude a contract for guarantee for off-plan houses:

+ A contract for guarantee for off-plan houses shall be made in the form of a guarantee agreement;

+ The guarantee sum for an off-plan housing project shall not exceed the sum of total amount which the investor is allowed to receive from the purchaser;

+ A guarantee agreement shall come into force from the date on which it is signed to the date on which the validity of guarantee obligations is terminated.  

- The commercial bank shall give guarantee commitment to each purchaser. To be specific:

+ Within 10 working days from the signing date of the contract for purchase or hire-purchase of house which stipulates the investor's obligations to return payment sums and others received from the purchaser to the purchaser in the event the investor fails to transfer the house to the purchaser on the agreed-upon schedule, the investor must send such contract for purchase or hire-purchase of house to the commercial bank;

+ Within 5 working days from the receipt of the contract for purchase or hire-purchase of house, the commercial bank shall base on the received contract for purchase or hire-purchase of house and the guarantee agreement to make and send the guarantee commitment to the purchaser's address;

+ The guarantee commitment is given in the form of a letter of guarantee;

+ A guarantee commitment shall be valid from the issued date and remain valid at least 30 days after the date of house being transferred to the purchaser as agreed upon in the contract for purchase or hire-purchase of house.

Circular No. 13/2017/TT-NHNN of the State Bank of Vietnam takes effect from November 15, 2017.

- Thanh Lam -

>> CLICK HERE TO READ THIS ARTICLE IN VIETNAMESE