Vietnam: Real estate mortgages require mandatory registration of security interests

The Government of Vietnam issued Decree No. 102/2017/NĐ-CP on registration of security interests, effective from October 15. According to this Decree, registration of security interests refers to the recording in a security interest register or entry into a database on security interests by a security interest registry of the use of assets by the grantor to secure the secured party’s performance of an obligation.

Individuals and households when registering security interests according to the provisions of law on credit policies serving agricultural and rural development shall be exempt from registration fees.

Security interests subject to registration:

- Mortgage of land use rights;

- Mortgage of property on land whose ownership has been stated in the certificate of rights to use land, ownership of house and property on land;

- Pledge or mortgage of aircrafts;

- Mortgage of seagoing ships.

Security interests subject to registration upon requests:

- Mortgage of other personal/movable property;

- Mortgage of off-the-plan property on land;

- Title retention in case of purchase of property on land, off-the-plan property on land; purchase of aircrafts, seagoing ships; or purchase of other personal/movable property with title retention.

The contents of and documents in applications for registration of security interests in land use right, property on land, aircrafts, seagoing ships must be conformable to those kept at the registry. The applicant shall take legal responsibility for the lawfulness and accuracy of the application form.

The registry may not require any document not prescribed in the application by law; and may not require parties to correct the name or content of security agreement unless otherwise made by the applicant.

How to register

An application for security interest registration shall be filed by any of the following methods:

- via the online registration system;

- in person;

- by post; and

- via emails in a case where the applicant for registration has been granted a user code for the security interest database.

Authorities competent to register or provide information on security interests

- The Civil Aviation Administration of Vietnam affiliated to the Transport Ministry shall register and provide information on security interest in aircrafts.

- Vietnam Maritime Administration or Maritime Sub-Administration, Maritime Administration of Vietnam Maritime Administration affiliated to the Ministry of Transport (hereinafter referred to as Vietnam sea-going ship registry) shall register and provide information on security interest in seagoing ships.

- Branches of land registry and land registry affiliated to Services of Natural Resources and Environment (hereinafter referred to as land registry) shall register and provide information on security interest in land use rights and property on land.

- Transaction and asset registration centers of the National Registration Agency for Secured Transactions affiliated to the Justice Ministry (hereinafter referred to as registration center) shall register and provide information about security interest in personal/movable property and other properties not falling within the registering competence of authorities defined in Clauses 1, 2 and 3 of this Article.

Processing time limit

- The authority competent to register or provide information on security interests shall process an application for registration and provision of information within the working day in case of satisfactory application; if the application is received after 15:00, the registration and provision of information shall be completed within the next working day; with a possible extension up to 3 working days if necessary.

- If an application for registration of security interest in land use right, property on land is submitted at People’s Committee of commune, ward, or district-level town (hereinafter referred to as the People’s Committee of commune) or at receipt division of single-window system, the time limit for processing applications shall begin from the date on which the land registry receives the application forwarded by the People’s Committee of commune or the receipt division of single-window system.

The right to request provision of information on security interests

- Any natural person, juridical person, or household has the right to find out or request provision of information about security interests kept in the register, the security interest database, and national security interest database.

- Any People’s Court, People’s Procuracy, investigation body, civil enforcement agency, or competent regulatory agency has the right to request the registry to provide information about security interests for its professional activities and under its management. The information provided in this case shall not be charged as per the law.

Source: Vnexpress.net

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