Nowadays, property mortgage activities are very popular. However, depending on the type of property, we have many different ways of doing it. So about the matter “Does car mortgage have to be notarized in Vietnam?” Let’s find out with LSX in the article below.
Legal grounds
- Decree 102/2017/ND-CP
The concept of mortgage property
According to the provisions of the Civil Code, property mortgage is defined as the use of property by one party to secure the performance of an obligation to another party and not to hand over the property to that party. Mortgage transactions are often very common in daily life, the most typical are mortgage transactions of houses or cars to borrow money from a bank.
In terms of semantics, mortgage of property is the use of an asset by a party to replace or perform a previous obligation.
In fact, when the parties have obligations towards each other, they often apply a certain measure to ensure the interests of the obligee. Property mortgage is one of the measures to secure the performance of an obligation prescribed by law, whereby the parties to an obligation relationship choose to use it to secure the performance of an obligation.
Does car mortgage have to be notarized in Vietnam?
An auto mortgage is a mortgage agreement. A mortgage contract is a form of contract to secure property obligations. Normally, property mortgage contracts are signed between individuals, organizations and banks.
Accordingly, to ensure that the borrower fulfills his or her repayment obligations, the bank and the borrower often sign a mortgage contract. In which, borrowers use assets owned by them to secure the performance of their debt repayment obligations to the bank within a certain period of time.
Mortgage contracts are made in writing and often banks will require borrowers to notarize this contract. However, according to the documents currently in force, there is no requirement that the mortgage contract be notarized.
Previously, in Article 9 of Decree 163/2006/ND-CP (which has expired and been replaced by Decree 102/2017/ND-CP) it was stipulated that the notarization of the mortgage contract would be agreed upon by the parties consent and must be notarized only when required by law.
However, by Decree 102 in 2017, the Government no longer has this regulation, but only requires notarization of real estate mortgage contracts including houses, residential land, properties attached to land… in Clause 1, Article 122 of the Law on Housing and point a, Clause 1, Article 167 of the Land Law, Article 54 of the Law on Notary.
That is, there is no mandatory requirement that all property mortgage contracts must be notarized, but only real estate mortgage contracts, house mortgage contracts must be notarized at a notary practice organization.
Notarization of car mortgage contract
As analyzed above, not all mortgage contracts must be notarized except for real estate and houses. But if the parties agree to notarize, this procedure can be done as follows:
Implementing agencies
Notary practice organizations include notary offices or notary offices.
- Prepare profile
• Notarization request form clearly stating the request and information of the person requesting the notarization of the mortgage contract.
• Draft property mortgage contract.
• Identity papers of the mortgagor and bank (copy): Identity card/Citizen ID card or valid passport, household registration book, marriage registration, marital status confirmation.. .
• Property documents: Red book, Vehicle registration… (copy).
• Other papers (if any).
- Settlement time
Like other types of contracts, when notarizing a mortgage contract, the processing and settlement time is no more than 02 working days, if it is complicated, it takes no more than 10 working days.
- Fees and charges to be paid
When notarizing a property mortgage contract, the mortgagor must bear a notarization fee which is calculated according to the value of the property and the notarization remuneration set by the notarial practice organization but not higher than the ceiling level set by the People’s Council. given by the people of the province.
Regulations on car mortgage
About proof of vehicle ownership
Cars are assets that need to be registered for ownership. Therefore, you may only need the vehicle title certificate to identify the vehicle’s owner. In case the vehicle has been transferred but has not yet completed the procedures for registration of the transfer, the vehicle transfer contract may be requested.
About the form of mortgage contract
According to regulations, the mortgage of property must be made in writing, which can be made in a separate document or stated in the main contract. In cases where it is prescribed by law, the mortgage document must be notarized, authenticated or registered.
For car mortgages, the law does not require notarization. The parties can notarize if required.
About secured transaction registration
Secured transactions are registered in cases where the parties are required or required to register in accordance with the law.
Steps to make a car mortgage
Step 1: The parties sign a motor vehicle mortgage contract. According to the current law, mortgage contracts for these properties do not have to be notarized or authenticated in order to take legal effect; therefore, the parties can, depending on their needs, sign with or without notarization.
Step 2: Depending on the agreement of the parties, the mortgagor or the mortgagee shall register the mortgage contract with the Property Transaction Registration Center of the National Register of Secured Transactions..
Registration documents include:
• Application form for registration;
• The application form must accurately describe the chassis number of the motor vehicle. Each frame number of a motor vehicle is declared corresponding to a number box on the application for registration. In case the frame number of a motor vehicle has special characters (for example, the *; #…) sign, the registration requester must fully describe the frame number (numbers, letters and special characters). in the “Property Description” field on the application for registration;
• Mortgage contract in case the application for registration has only the signature and seal of one of the parties to the security interest;
• Authorization document in case the registration requester is an authorized person; and
• Proof of non-payment of fees when registering security interests.
Step 3: Receive the certificate of registration of security interest from the Security Transaction Registration Center. The Secured Transaction Registration Center will process the registration documents within the day of receiving the valid registration documents. If the application is received after 15:00, the Secured Transaction Registration Center will complete the registration within the next working day; in case it is necessary to extend the processing time for registration dossiers, it shall not exceed 03 working days.
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Please see more
- Buy and sell apartments needs notarization of contracts in Vietnam
- What do you need to notarize a rental contract in Vietnam?
- Unilaterally cancel the notarized real estate purchase and sale contract in Vietnam
Frequently asked questions
A mortgage contract is a form of contract to secure property obligations. Normally, property mortgage contracts are signed between individuals, organizations and banks.
To apply for a car loan at a bank, the following conditions must be met:
– Have Vietnamese nationality.
– Age between 18 and 65 years old at the time of settlement.
– The purpose of the mortgage loan is lawful and consistent with the Bank’s regulations from time to time.
– Having a car in Hanoi, Ho Chi Minh City or the provinces where the Bank’s branches want to borrow.
– New car or used car ≤ 7 years from the date of first registration.
– Have a stable monthly income.
– At the time of borrowing, there were no bad debts at credit institutions.
– The validity period of the ID card is 15 years from the date of issue.
– Only request to provide KT3 book if the customer does not have a cash register in the same province/city as the Bank has a business location.
– Car mortgage for no more than 7 years from the first registration.
– Compulsory car loan for both husband and wife to sign (If married)
– The debt guarantor or co-borrower must be a relative who has a relationship with the customer: Father, mother, brother or sister with the customer or the biological child of the customer.
– Maximum 2 co-borrowers (Including spouses of co-borrowers)
– Maximum 2 debt repayment guarantors (Both spouse of the debt guarantor)
– The owner of the mortgaged car or the customer’s spouse meets the conditions.
– If the source of income is from a household business, it is required to prove that the business household has been operating for 12 months and the head of the business household must be 25 years or older at the time of application.
Conclusion: So the above is Does car mortgage have to be notarized in Vietnam?. Hopefully with this article can help you in life, please always follow and read our good articles on the website: lsxlawfirm.com
