Conditions for land without a red book to be mortgaged
People are allowed to mortgage land use rights when meeting the following conditions:
Having a Certificate of Land Use Rights (red book, pink book) except for cases of inheritance of land use rights, conversion of agricultural land when consolidating land, exchanging plots, donating land use rights to the state.
The land is not in dispute.
Land is not subject to seizure or other measures to ensure enforcement of judgments; not subject to temporary emergency measures as prescribed by law.
Land within the term of use.
At the same time, according to Clause 4, Article 45 of the 2024 Land Law, in case of inheritance of land use rights, the inheritor is allowed to exercise the right when having a Certificate of land use rights or a Certificate of house ownership rights and land use rights or a Certificate of land use rights, house ownership rights and other assets attached to land or a Certificate of land use rights, ownership rights of assets attached to land or meeting the conditions for granting a Certificate of land use rights and ownership rights of assets attached to land according to the provisions of this Law.
In case of inheritance without a red book, the land use right can still be mortgaged if the conditions of Clause 1 and Clause 4, Article 45 of the 2024 Land Law are met.
However, whether or not to mortgage land use rights without a red book depends on the mortgagee.
General requirements for guaranteed assets
According to Article 295 of the 2015 Civil Code, assets used to secure civil obligations must meet certain conditions.
Specifically, the property under guarantee must be owned by the guarantee party, except in special cases such as holding or reserving ownership.
Guaranteed assets can be described in general, but must be determined in practice. In addition, collateral can be existing assets or future assets.
However, future land use rights are not considered legal guaranteed assets, due to not meeting the conditions according to the provisions of the land law.
The value of the collateral property can be greater than, equal to or less than the value of the secured obligation, depending on the agreement between the parties.
