mortgaging red books is the common name for people to refer to mortgaging houses and land to borrow money. The following provisions are regulations on the implementation of mortgage rights under the Land Law, Housing Law and Civil Code, not including specific conditions for each bank.
Conditions for mortgaging land use rights
Clause 1, Article 27 of the 2024 Land Law stipulates: Land users are allowed to exercise the rights to convert, transfer, lease, sublease, inherit, donate land use rights; mortgage, contribute capital using land use rights according to the provisions of this Law and other relevant laws.
Clause 1, Article 45 of the 2024 Land Law, land users are allowed to mortgage land use rights when the following conditions are met:
- Having a Certificate, 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, communities and cases specified in Clause 7, Article 124 and Point a, Clause 4, Article 127 of this Law.
- Land is not in dispute.
- Land use rights are not subject to seizure to ensure enforcement of judgments.
- Within the land use term.
- Land use rights are not subject to temporary emergency measures as prescribed by law.
Conditions for exercising housing mortgage rights
Pursuant to Articles 160 and 161 of the 2023 Housing Law, to mortgage a house, it must meet the conditions of the house when participating in the transaction and the conditions of the mortgagor, specifically:
According to Clause 1, Article 160 of the 2023 Housing Law, for mortgage transactions with houses, the house must meet the following conditions:
- Having a Certificate as prescribed by law, except in the case of mortgaging a house formed in the future (a house under construction investment and not yet accepted for use).
- Not subject to disputes, complaints, or lawsuits about ownership rights as prescribed by law on dispute resolution, complaints, and denunciations.
- Currently in the housing ownership period in the case of limited-term housing ownership.
- Not subject to seizure to enforce a judgment or to enforce an administrative decision that has come into legal effect by a competent state agency or not subject to temporary emergency measures or preventive measures according to a decision of a Court or a competent state agency.
- Not in cases where there is a decision to reclaim land, a notice of clearance or demolition of housing by a competent authority.
- The conditions specified in Point b and Point c of this Clause do not apply to the purchase and sale or hire-purchase of future housing.
Pursuant to Clause 1, Article 161 of the Housing Law 2023, home mortgages must meet the following conditions: The seller, the lessee, the lessee, the lessee, the lessee, the lessee, the lessee, the lessee, the lessee, the lessee, the lessee, the lessee, the lessee, the lessee, the lessee must meet the conditions on the subject participating in the transaction according to the provisions of the law on civil matters.
Note: Houses and land with separate mortgage conditions. In case a person has an individual house and wants to mortgage both the house and land, the mortgage right can only be exercised if the land use right meets the conditions under Clause 1, Article 45 of the 2024 Land Law and the house meets the conditions under Clause 1, Article 160 of the 2023 Housing Law.
