Guidance on having mortgaged off-the-plan residences in housing construction projects
The State Bank of Vietnam issued the Circular No. 26/2015/TT-NHNN dated December 09, 2015 guiding the procedures and formalities for mortgaging and releasing mortgage of housing construction projects and off-the-plan residences, allow that investors are allowed to mortgage projects and off-the-plan residences in the projects at credit institutions to borrow capital for the investments into the projects or construction of such residences.
Similarly, organizations and individuals building off-the-plan residences on their legitimate lands are allowed to mortgage such residences at credit institutions to borrow capital for the construction of such residences. Organizations and individuals purchasing off-the-plan residences from investors’ housing construction projects are allowed to mortgage such residences at credit institutions for purchasing such residences.
For organizations and individuals mortgaging off-the-plan residences purchased from investors’ housing construction projects, organizations and individuals can mortgage off-the-plan residences can have house purchase contracts made with the investors; have the agreements for transfer of house purchase contracts if being the transferees of house purchase contracts according to the regulations; have written evidences of installing payments for the residences to the investor according to the schedule agreed in the house purchase contract; no complaint, lawsuit or dispute over house purchase contracts or transfer of house purchase contracts exists…
Besides, the Circular also details the housing construction projects eligible for mortgage loans such as an investment project freshly constructing or renovating an independent residence or a cluster of residences; an investment project constructing residences with synchronized technical and social infrastructures in rural areas; an investment project constructing urban areas or using mixed types of lands, parts of which are exploited for the construction of residences; a construction investment project that has buildings for both residential and business purposes.This Circular takes effect on December 10, 2015.