On 25 April 2014, the State Bank of Vietnam, the Ministry of Construction, the Ministry of Justice and the Ministry of Natural Resources and Environment issued Joint Circular No. 01/2014/TTLT-NHNN-BXD-BTP-BTNMT (“Circular 01”) guiding procedures for mortgaging houses in the future according to Decree No. No 71/2010/ND-CP guiding the implementation of the Housing Law (the “Decree 71”).
Circular 01 provides details of the procedures to mortgage houses of organizations and individuals formed in the future (including mortgage procedures, notarization of mortgage contracts and mortgage registration). It applies to loans taken from credit institutions to purchase houses in residential housing development projects and urban construction investment projects of real estate trading enterprises (“Housing Development Projects”).
Circular 01 provides specific conditions that future houses need to satisfy in order to be mortgaged. The value of the mortgaged house must be agreed by the two parties and based on a determined value at the time of executing the house purchasing contract. The notarization and registration of security transactions are compulsory for this mortgage contract, and the detailed procedures of Circular 01 have now clarified previous uncertainties under Decree 71.
It is worth noting that the mortgagor can mortgage future houses to only one credit institution for housing loans. If the Housing Development Project is mortgaged as a guarantee for another civil obligation, the real estate trading enterprise must apply for registration procedures to change the registered mortgaged assets (withdrawal of collateral) before selling the house.
Circular 01 takes effect from 16 June 2014 and replaces Joint Circular No. 05/2007/TTLT-BTP-BXD-BTNMT-NHNN dated 21 May 2007
| Issue date
| Effective date
| Expired Date
||Nguyen Tran Nam |
||Joint Circular No. 01/2014/TTLT-NHNN-BXD-BTP-BTNMT dated April 25, 2014 of the State Bank of Vietnam, the Ministry of Construction, the Ministry of Justice and the Ministry of Natural Resouces and Environment guiding procedures for mortgage of houses to be formed in the future under the Government’s Decree No. 71/2010/ND-CP of June 23, 2010, detailing and guiding the implementation of the Housing Law |
||Ministry of Construction |
| Type of Document
||Housing and Real Estate Market |