New Text Notification

Vietnam’s new regulation on guarantee for sale of off-plan houses

Duy Thịnh

08:53, 04/10/2017

The State Bank of Vietnam issued Circular No. 13/2017/TT-NHNN to provide amendments on guarantee for sale or hire-purchase of off-plan houses toCircular No. 07/2015/TT-NHNN. To be specific:

- A commercial bank is capable of giving guarantees for off-plan houses if:

+ its license for establishment and operation, or the document stating any amendment or modification to this license includes bank guarantee operations; and

+ it is not prohibited from giving guarantees for an off-plan house while it is under a special control.

- The guarantee commitment is given in the form of a letter of guarantee (according to current regulations, the guarantee commitment is given in the form of a letter of guarantee or a guarantee contract);
- Balance of guarantee: The balance of guarantee for the investor is the total amount which the investor has received from purchasers according to the agreed-upon schedule before the date of houses being transferred to purchasers and gradually reduced until guarantee obligations to purchasers are terminated.

View details at Circular No. 13/2017/TT-NHNN of the State Bank of Vietnam, effective from November 15, 2017.

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