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

04 Principles of registration for mortgage of land use rights and assets attached to land in Vietnam (Internet image)

Regarding this issue, LawNet would like to answer as follows:

1. Cases of registration for mortgage of land use rights and assets attached to land in Vietnam

According to Clause 1, Article 4 of Circular 07/2019/TT-BTP, cases of registration for mortgage of land use rights and assets attached to land include:

- Registration for mortgage of land use rights;

- Registration for mortgage of assets attached to land;

- Registration for mortgage of both land use rights and assets attached to land;

- Registration for mortgage of off-the-plan assets attached to land;

- Registration for mortgage of both land use rights and off-the-plan assets attached to land;

- Registration for mortgage of investment projects for construction of houses, investment projects for construction of buildings other than houses or other investment projects for construction as per the law;

- Registration for revision of mortgaged contents;

- Registration for notice on disposal of mortgaged assets in case of registering for mortgage;

- Withdrawal of registration for mortgage.

2. 04 Principles of registration for mortgage of land use rights and assets attached to land in Vietnam

 Principles of registration for mortgage of land use rights and assets attached to land specified in Article 5 of Circular 07/2019/TT-BTP are as follows:

(1) Land registration offices shall proceed with mortgage registration specified in Article 4 of Circular 07/2019/TT-BTP of applicants as specified in Clause 1 Article 8 of Decree 102/2017/ND-CP 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 Circular 07/2019/TT-BTP 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.

(2) 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.

(3) In case a project developer has mortgaged and registered for mortgage of 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 he project developer, buyer and mortgagee agree otherwise.

In case a project developer has mortgaged and registered for mortgage of investment projects for construction of buildings other than houses, other investment projects for construction or off-the-plan construction in projects mentioned above as per the law, before selling construction in the projects, the project developer must apply to revise mortgaged contents to withdraw collateral.

(4) 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.

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