Guidelines for change in the collateral being land use rights or property on land in Vietnam

Guidelines for change in the collateral being land use rights or property on land in Vietnam (Internet image)

1. Guidelines for change in the collateral being land use rights or property on land in Vietnam

According to Article 36 Decree 99/2022/ND-CP, regulations on change in information about the grantor, change in the collateral being land use rights or property on land are as follows:

- The applicant for registration may concurrently submit the application for registration of the secured transaction along with the application for registration of land or asset adjustments or may register the land or asset adjustments before registering the secured transaction in cases where the following information changes:

+ Changes in the map sheet number, parcel number, or parcel address that do not match the information on the Certificate due to administrative unit rearrangements, land consolidation, remapping, or redefining the shape, size, and area of the parcel;

+ Changes in the current status of the type of house (or type of construction work), building name (or construction work name), number of floors, or information on other assets attached to the land that lead to incompatibility with the details on the Certificate;

+ Changes in the name or surname and name of the securing party, including changes based on documents from competent authorities.

- In cases where the registration request form does not declare information on the shape, size, or area of the parcel, the house, or the construction work or other assets attached to the land, and these details on the Certificate have changed, the applicant is not required to register the changes.

- If there is a change in information as prescribed in point b, clause 1, Article 36 of Decree 99/2022/ND-CP and the applicant does not carry out registration for changes in assets according to the land law, the Land Registration Office will register the secured transaction based on information on the secured assets provided in the issued Certificate. They will not be liable for registering the secured transaction for assets that do not comply with the changed current status. The securing party and the secured party must take responsibility for registering the secured transaction for the changed assets without carrying out registration for changes as per the land law.

- The Land Registration Office does not require registration for changes or cancel registration but only confirms the changes on the Certificate or reissues the Certificate following the land law in cases where there are changes in the securing party's information, except for changes in the name or surname and name. Changes to the information on the secured property, such as the parcel, house, construction work, or other assets attached to the land that differ from the information on the Certificate due to land consolidation, remapping, partitioning, merging, or reshaping that do not alter the securing party's usage or ownership rights over the assets, are also accounted for.

If a new Certificate is issued, the Land Registration Office records the secured transaction registration on the newly issued Certificate.

For secured property formed in the future that has now materialized and has a Certificate, and there is a request for a change in registration, the Land Registration Office will re-record the registration details on the Certificate issued for the asset.

- For changes in the securing party, or changes in the name or surname and name of the land user, house owner, construction work owner, or owner of other assets attached to the land, including changes based on documents from competent authorities and there is a request to register the change, the Land Registration Office does not require the previous registration to be canceled before carrying out the change registration.

- If the investor has mortgaged and registered the mortgage on a housing construction investment project or future housing, non-housing construction investment project, agricultural investment project, forest development project, or other projects that use land or constructions in these projects, before signing a contract for selling the house or construction within the project, the investor must discharge the mortgage on the sold asset and perform change registration to withdraw the mortgage on the house or construction, except where the mortgagee and the asset buyer agree to continue using the asset to secure obligations. Registration for changing the securing party follows the provisions at point a, clause 1, Article 18 of Decree 99/2022/ND-CP.

- If the land user or a third party establishes a construction work or other assets attached to the land that are not part of the secured assets based on the agreement in the secured contract and has a need to add these assets to secure the obligation, they must follow the procedures for certifying ownership before registering changes to add the secured assets if these assets are subject to ownership registration, except for assets formed in the future. The applicant for registration can concurrently submit the ownership certification dossier for the asset attached to the land and the change registration dossier.

- Perform change registration to withdraw assets that are recovered, demolished, destroyed, or confiscated, and simultaneously add secured assets for the rights to use new land, new house, new construction, or other new assets attached to the land as replacements or replacements made in the following cases:

+ Assets are replaced or exchanged for new land use rights, new houses, new constructions, or other new assets attached to the land for the securing party as prescribed by law;

+ New assets are created to replace secured assets that are houses, constructions, or other assets attached to the land that have been demolished or destroyed per the agreement between the securing party and the secured party;

+ New assets are created because houses, constructions, or other assets attached to the land were demolished or destroyed by the securing party and the contract agreed that new assets would be used to secure the obligations.

- If the land user, house owner, construction work owner, or owner of other assets attached to the land requests land changes registration due to remapping, extending land use period before the end of the usage period, changing land use purposes, or other cases as per the land law, the Land Registration Office does not require the cancellation of previously registered secured transactions before performing registration for land changes.

- If the applicant submits both the land change registration dossier and the secured transaction registration dossier as stipulated in clause 1 Article 36 of Decree 99/2022/ND-CP or submits both the ownership certification application for the asset attached to the land and the change registration dossier as stipulated in clause 7 Article 36 of Decree 99/2022/ND-CP, then the procedures provided in clause 2 Article 35 of Decree 99/2022/ND-CP shall be followed.

2. Application for registration of changes to land use rights or property on land in Vietnam

The application for registration of changes to land use rights or property on land in Vietnam according to Article 32 of Decree 99/2022/ND-CP includes:

- Request form as per Form No. 02a in the Appendix (01 original copy).

- One of the following documents (01 original copy or 01 certified copy):

+ Amendment or supplement document to the secured contract in cases of change registration as agreed in this document;

+ Document on the transfer of debt claims or obligations in cases of change registration due to the transfer of debt claims or obligations;

+ Other documents proving the grounds for change registration in cases not covered by points a and b, clause 2, Article 32 of Decree 99/2022/ND-CP.

- The original Certificate in cases where the secured asset has a Certificate.

- In cases of change registration as stipulated in point b, clause 1, Article 18 of Decree 99/2022/ND-CP, in addition to the documents stipulated in clause 1, Article 32 of Decree 99/2022/ND-CP, the registration dossier must also include the Certificate for land use rights or the Certificate of ownership for houses, constructions, or other assets attached to the land if these assets have been issued Certificates.

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