Conditions for exercising the right to mortgage red book
Pursuant to Clause 1, Article 45 of the 2024 Land Law, land users are allowed to mortgage land use rights when the following conditions are met:
- Have a Certificate of land use rights or a Certificate of house ownership and land use rights or a Certificate of land use rights, house ownership and other assets attached to land, except in the following cases:
+ Inheritance of land use rights.
+ Converting agricultural land when consolidating fields, exchanging plots, donating land use rights to the State and communities.
+ Foreign-invested economic organizations receive real estate project transfers.
+ Households and individuals using land that have not been granted a Certificate of land use rights, a Certificate of house ownership rights and land use rights, a Certificate of land use rights, house ownership rights and other assets attached to land, a Certificate of land use rights, ownership rights of assets attached to land but are eligible for a Certificate of land use rights, ownership rights of assets attached to land are allowed to transfer land use rights, lease, sublease land use rights, and contribute capital using land use rights to implement projects.
- Land has no dispute or the dispute has been resolved by a competent state agency, a court judgment or decision, an arbitration decision or award that has come into legal effect.
- Land use rights are not subject to seizure or other measures to ensure enforcement of judgments according to the provisions of the law on civil judgment enforcement.
- During the land use period.
- Land use rights are not subject to temporary emergency measures as prescribed by law.
Does the red book mortgage contract have to be notarized?
According to Clause 3, Article 27 of the 2024 Land Law, the notarization and authentication of contracts and documents exercising the rights of land users are carried out as follows:
- Contracts for transfer, donation, mortgage, capital contribution using land use rights, land use rights and assets attached to land must be notarized or certified, except for the case specified in Point b of this Clause.
- Contracts for leasing, subleasing land use rights, land use rights and assets attached to land, contracts for converting agricultural land use rights; contracts for transferring, contributing capital in the form of land use rights, land use rights and assets attached to land, assets attached to land in which one party or parties participating in the transaction are real estate business organizations must be notarized or certified at the request of the parties.
- Documents on inheritance of land use rights, land use rights and assets attached to land are notarized or certified according to the provisions of civil law.
- Notarization and certification are carried out in accordance with the provisions of law on notarization and certification.
Thus, when mortgaging a red book, the mortgage contract must be notarized and authenticated.
What does a red book mortgage file include?
Specifically, in Article 27 of Decree 99/2022/ND-CP, the person requesting mortgage registration submits a set of documents, including the following papers:
- Original request form No. 01a.
- Guarantee contract or notarized or certified guarantee contract (1 original or 1 certified copy).
- Original certificate (red book, pink book) except in case of simultaneous submission of security measure registration dossier with:
+ Registration file for changes in land and assets attached to land; or
+ Documents certifying ownership of assets attached to land.
Can mortgaged land be sold?
Pursuant to Clause 8, Article 320 and Clause 5, Article 321 of the 2015 Civil Code, the mortgagor is not allowed to sell, exchange or donate the mortgaged property, unless the mortgagee agrees.
Thus, the mortgagor is only entitled to sell the land if the mortgagee agrees.
