Can one red book mortgage at many banks?
Mortgage is one of the relatively common security measures to fulfill obligations with assets. Accordingly, the obligor uses the property under its ownership to secure the performance of the obligation towards the obligee.
Red book (certificate of land use right) is one of the most preferred security assets of the bank. Typically, the loan value is about 70-80% of the property’s value. Many people also wonder if a red book can be mortgaged many times at many banks?
Regarding the conditions for mortgage of red books, according to Clause 1, Article 188 of the 2013 Land Law, land users are allowed to exercise the right to mortgage red books when fully meeting the following conditions:
Have a certificate of land use rights, ownership of houses and other land-attached assets. For the case of conversion of agricultural land use rights, the land users may exercise their mortgage rights after the State’s decision on land allocation or land lease is issued; In case of inheriting land use rights, land users may exercise their mortgage rights when fully meeting the conditions for issuance of certificates of land use rights and ownership of houses and other land-attached assets.
In case the land user is late to fulfill its financial obligations or is allowed to owe its financial obligations to the State, the financial obligations must be fulfilled before the mortgage is made.
– Land without dispute;
– The land use right is not distrained to secure judgment enforcement;
– During the land use period.
At the same time, the Civil Code 2015 stipulates that a property is used to secure the performance of many obligations as follows:
– The security property has a value at the time of establishment of the security transaction that is greater than the total value of the secured obligations, unless otherwise agreed upon or otherwise provided by law.
The securing party must notify the latter of the security property being used to secure the performance of other obligations. Each warrant must be in writing.
– Where property must be disposed of to perform a due obligation, other obligations that are not yet due are considered due and all parties jointly secured are entitled to participate in the disposal of the property. The secured party which has notified about the disposal of the property shall be responsible for the disposal of the property, unless otherwise agreed upon by the jointly secured parties. In case the parties wish to continue to perform undue obligations, they may agree on the use of other assets by the securing party to secure the performance of undue obligations.
Thus, a red book can be mortgaged at many banks when the following conditions are met:
Firstly, at the time of mortgage, the value of the real estate is greater than the total amount borrowed at the banks.
Second, there is no agreement on restricting or disallowing the use of the mortgaged red book to continue the mortgage. For example, if there is a clause in the mortgage contract at bank A that does not allow the mortgagor to continue using the red book to mortgage another bank, it will not be able to mortgage the red book for the second time.
Third, the condition of the mortgaged property needs to be notified by the mortgagor to the next mortgage-receiving bank. Each mortgage must be made in writing, notarized and authenticated in accordance with current law. At the same time, the mortgage of land use rights must be registered at the land registration agency and take effect from the time of registration in the cadastral book.
at Blogtuan.info – Source: cafebiz.vn – Read the original article here
