1. What is a land use rights mortgage contract?
1.1. Concept of land use rights mortgage contract
In civil contracts, most parties perform their obligations as agreed, but in reality, not all obligations are fully and seriously performed. One of the solutions to ensure the performance of civil obligations as well as create conditions for households and individuals to borrow capital to invest in production and improve the capacity of land users. The law allows land users to mortgage land use rights to borrow capital for production, meeting the necessary and legitimate needs of workers.
A land use rights mortgage contract is an agreement between the parties, whereby the land user (mortgagor) uses its land use rights to ensure the performance of civil obligations to the other party (the recipient). Mortgage). The mortgagor may continue to use the land during the mortgage term.
Land users have the right to mortgage land use rights, creating a legal and practical basis for banks and credit institutions as well as other lenders to perform their functions and protect their rights.
Mortgage of land use rights is when a land user uses his or her land use rights to ensure the performance of civil obligations because land use rights are only processed to ensure the performance of obligations when the party mortgaging the use rights The land owner fails to perform or improperly performs his/her obligations in a contractual relationship.
1.2. Content of mortgage of land use rights
Are all the terms that the mortgagor and mortgagee agree on in the contract. These terms determine the main content of the contract:
– Contracts for mortgage of land use rights must be made in writing and must go through procedures and be registered at the competent People’s Committee according to the provisions of land law. After registration, the contract is considered valid. If the contract does not comply with the procedures prescribed by law, the contract is invalid.
– Determine the rights and obligations of the parties, land class, area, location, mortgage term, determine methods of handling land use rights…
– These are indispensable provisions in land use rights mortgage contracts.
2. Subject of land use rights mortgage contract
The parties involved in mortgaging land use rights are the mortgagor and the mortgagee of land use rights.
– The mortgagor of land use rights is a Vietnamese household or individual using land with a legal land use right certificate, using their land use rights to ensure the performance of obligations.
– The mortgagee can be a Vietnamese bank or a Vietnamese credit institution that mortgages land use rights for agricultural land. For residential land, the mortgagee can be a Vietnamese economic organization or individual in the country.

3. Subject of the contract
Mortgage of land use rights is a measure to ensure the performance of obligations, its object is all or part of land use rights.
The object of the mortgage is agricultural land and residential land.
Mortgage of land use rights has unique characteristics compared to other forms of land use rights transfer. During the term of the mortgage contract, the mortgagor still directly uses the land and exploits the land to produce and harvest products, except in cases where the yield and income also belong to the mortgaged property. However, the mortgagor’s right to use the mortgaged land is limited in the transfer of land use rights. They are not allowed to convert, transfer, or lease mortgaged land use rights (unless the mortgagee agrees).
The transfer of rights and obligations in the mortgage of land use rights demonstrates the nature of ensuring obligations in that: When the mortgagor cannot perform his/her obligations, the mortgagee has the right to request a competent state agency. the right to organize auctions of land use rights to recover capital and interest. In this case, all rights and obligations of the land user are transferred to another land user as in the transfer of land use rights.
4. Rights and obligations of the parties
4.1. Rights and obligations of the mortgagor
* Rights of the mortgagor of land use rights
– To use the land during the mortgage term (this is different from a normal mortgage).
– Receive loans due to mortgage of land use rights according to the agreed method;
– Enjoy the yields and profits earned, except in cases where the yields and profits are also part of the mortgaged property.
– To convert, transfer, lease, or sublease mortgaged land use rights if agreed by the mortgagee;
– Receive the land use right certificate back after completing the mortgage obligations.
* Obligations of the mortgagor of land use rights
– Deliver the land use right certificate to the mortgagee.
– Carry out mortgage registration procedures; delete the mortgage registration when the mortgage contract terminates;
– Use land for the right purpose, without destroying or reducing the value of mortgaged land;
– Pay the loan on time and in the right manner as agreed in the contract.
4.2. Rights and duties obligations of the mortgagee
* The mortgagee has the right to:
– Check and remind the mortgagor of land use rights to protect and preserve the land and use the land for the right purpose;
– Priority in debt payment in case of handling mortgaged land use rights.
* Obligations of the mortgagee:
– Together with the mortgagee, register the mortgage;
– Return documents certifying land use rights when the mortgagor has fulfilled the obligation to secure the mortgage.
When the due date for performing the obligations secured by mortgage of land use rights is due and the mortgagor fails to perform or improperly performs the obligations, the mortgaged land use rights will be handled according to the agreement; If there is no agreement or cannot be handled according to agreement, the mortgagee has the right to sue in court.
5. Procedure for mortgaging land use rights
(Clause 2, Article 9, Circular 24/2014/TT-BTNMT)
Land use rights mortgage contracts must be notarized and authenticated. Documents submitted when registering mortgages and deregistering mortgages are made in accordance with regulations on registration of secured transactions.