Mortgage of land use rights has been taking place actively and increasingly popular in the context of the current market economy. Land use rights become collateral assets, financial intermediaries, and bridges for credit institutions to circulate capital for the economy. The land law of our country has very specific provisions on conditions and procedures for mortgage, which clearly states the cases in which land use rights are not mortgaged. LSX Lawfirm will give you an article about: “The case of not mortgaged land use rights in Vietnam”, as follows:
Legal grounds
– Land Law No. 45/2013/QH13
– Civil Code No. 91/2015/QH13
Conditions for mortgage of land use rights in Vietnam
Article 317 of the 2015 Civil Code stipulates that mortgage of property means the use of property by one party (the mortgagee) to secure the performance of an obligation and not handing over the property to the other party (the mortgagee). challenge).
Accordingly, understood that the mortgage of land use rights means that the land user uses the land use rights under his/her ownership to secure the performance of obligations and does not assign the land to the mortgagee. In this case, the mortgagor will deliver the Certificate to the mortgagee.
According to Article 188 of the 2013 Land Law, a mortgage of land use rights permitted; when the following conditions met:
Firstly, have a Certificate, except for the case specified in Clause 3, Article 186 and the case of receiving an inheritance specified in Clause 1, Article 168, specifically:
- For the case of conversion of agricultural land use rights; the land users may exercise the mortgage right after the decision on land allocation or land lease issued.
- In case of inheriting land use rights, land users may exercise their mortgage rights upon obtaining a Certificate or meeting all conditions for issuance of a Certificate of land use rights and ownership of houses; and other assets attached to land. attached to the land.
- In case the land user allowed to delay the performance of financial obligations; or entitled to debit the financial obligations, the financial obligations fulfilled before exercising the rights.
– Land without dispute;
– The land use right is not distrained to secure judgment enforcement;
– During the land use period.
Note:
+) In addition to the above conditions, when exercising the rights to exchange, transfer, lease, sublease; inherit or donate land use rights; the right to mortgage land use rights; or contribute capital with land use rights must also satisfy the conditions for each case as detailed in Articles 189, 190, 191, 192, 193 and 194 of the 2013 Land Law.
+) The mortgage of land use rights, capital contribution with land use rights must be registered at the land registration agency and take effect from the time of registration in the cadastral book.
Cases in which land use rights are not mortgaged in Vietnam
According to the provisions of Article 188 above, if the land does not meet these conditions, the red book cannot mortgage. Specifically, land users do not have red books or other documents proving land use rights; disputed land; land use rights distrained to ensure judgment enforcement; expired land.
In addition, there are a number of other cases where land use rights did not mortgage as follows:
Case 1: The person who is obliged to manage the estate is the land use right
Point b, Article 617 of the 2015 Civil Code stipulates the obligations of the administrator of the estate appointed in the will or appointed by agreement of the heirs, as follows:
Article 617. Obligations of the estate administrator
…………
b) Preservation of heritage; may not sell, exchange, donate, pledge, mortgage or otherwise dispose of the property, without the written consent of the heirs.
Therefore, if the conservator of the estate is in the time of preserving the estate of another person; he cannot use that property as collateral. In this case, the administrator of the estate has the right to mortgage; if the preservation period expires but no heirs receive the estate; the court will issue a decision to hand over the estate to the administrator.
Case 2: Land of religious establishments, residential communities.
According to Clause 2, Article 181 of the 2013 Land Law, it stipulates that religious establishments and residential communities using land may not convert, transfer; lease or donate land use rights; must not mortgage or contribute capital with land use rights.
You can refer to the article related to Regulations on apartment ownership or In case the company’s head office address is located in an apartment building in Vietnam
Related artice: Procedures for foreigners to buy apartments in Vietnam
Foreigners buy apartments of Vietnamese individuals
Case 3: Land for civil aviation activities.
Clause 1, Article 156 of the 2013 Land Law stipulates that land for civil aviation activities at airports and airfields includes:
- Land for construction of headquarters of state management agencies operating regularly at airports and airfields;
- Land for construction of items in airport and aerodrome infrastructure; including land for construction of runways, taxiways, aircraft aprons, facilities to ensure flight operations and ensure aviation security; airport emergency, fences, public service roads; internal port roads and other works and ancillary areas of the airport;
- Then Land for construction of facilities and works in service of aviation service business at airports and airfields;
- Land for construction of works in service of non-aviation service business.
At the same time, in Clause 4 of this Article, organizations and individuals using land at airports and airfields must use the land for the right purposes; may not exchange, transfer, donate or lease land use rights, mortgage or contribute capital with land use rights.
Related questions
The purpose is to make a place to live for people whose houses and land have been cleared. People choose one of the following two cases:
Receive compensation and move to another place
Moving into a resettlement area (a type of apartment building with basic services)
This is a type of apartment for people with low income. People who have been working for a long time but do not have enough money to buy a house have to rent a house to live in. In general, you will have to show low income to get into this type of housing.
Social housing is only granted a certificate of house ownership, lease and transfer after 5 years of receiving the house.
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