Procedures for deregistration of security interests in land use rights in Vietnam

Procedures for deregistration of security interests in land use rights in Vietnam (Source: Internet)

1. What is registration of security interest?

According to Clause 1, Article 3 of Decree 102/2017/ND-CP, rgistration 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.

2. Security interests subject to registration in Vietnam

According to Article 4 of Decree 102/2017/ND-CP, the security interests subject to registration are as follows:

- The following security interests are 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 (hereinafter referred to as land use right certificate);

+ Pledge or mortgage of aircrafts;

+ Mortgage of seagoing ships.

- The following security interests are 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.

3. Application for deregistration of security interest in land use rights or property on land in Vietnam

Application for deregistration of security interest in land use rights or property on land according to Article 47 of Decree 102/2017/ND-CP is as follows:

- An application for deregistration of security interest in land use rights or property on land shall include:

+ An application form for deregistration (1 original);

+ A written consent of deregistration of security interest given by the secured party (1 original or 1 non-certified copy enclosed with original for collation)

Or a document certifying the release of mortgage given by the secured party’s obligations (1 original or 1 non-certified copy enclosed with original for collation) in a case where the application form for deregistration only bears signature of the grantor;

+ Original of Certificate in case of security interest registration without Certificate;

+ A written authorization if the applicant for registration is an authorized person (1 original or 1 certified true copy or 1 non-certified copy enclosed with original for collation).

- In case of deregistration prescribed in Point i Clause 1 Article 21 of Decree 102/2017/ND-CP, an application for deregistration of mortgage shall include:

+ An application form for deregistration (1 original);

+ Original of Certificate in case of security interest registration without Certificate;

+ A written authorization if the applicant for registration is an authorized person (1 original or 1 certified true copy or 1 non-certified copy enclosed with original for collation).

+ A document certifying the disposal of collateral issued by the civil enforcement agency or bailiff office (1 original or 1 certified true copy or non-certified copy enclosed with original for collation).

4. Procedures for deregistration of security interests in land use rights in Vietnam

Procedures for deregistration of security interests in land use rights according to Clause 1, Article 48 of Decree 102/2017/ND-CP are as follows:

In case of application for registration of security interest in land use right or property on land, modification of registered security interest, deregistration, within the time limit for processing applications, the land registry shall record the registration of mortgage, title retention, modification, or deregistration in chronological order in the cadastral record and Certificate.

Subsequently, the land registry shall certify the registration in the application form for registration.

Quoc Dat

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