Mortgage of land use rights is one of the rights of land users. However, in order to be able to mortgage the land use right, it must meet the conditions prescribed by law. Article 188 of the 2013 Land Law prescribes conditions for exercising the rights to exchange, transfer, lease, sublease, inherit, donate or mortgage land use rights; capital contribution by land use right as follows:
“ Land users may exercise the rights to exchange, transfer, lease, sublease, inherit, donate or mortgage land use rights; capital contribution with land use rights when the following conditions are met :
- a) Having a Certificate, except for the case specified in Clause 3, Article 186 and the case of inheritance specified in Clause 1, Article 168 of this Law;
- b) Undisputed land;
- c) The land use right is not distrained to secure judgment enforcement;
- d) During the land use term.”
At the same time, the Land Law also stipulates the time to exercise the rights of land users, including mortgage, as follows:
“ Land users may exercise the rights to transfer, lease, sublease, donate, mortgage or contribute land use rights as capital upon obtaining the Certificate. For the case of conversion of agricultural land use rights, the land users may exercise their rights after the decision on land allocation or land lease is issued; In case of inheriting land use rights, land users may exercise their rights when they obtain a Certificate or meet all conditions for issuance of a Certificate of land use rights, ownership of houses and other land-attached assets. . ”
Thus, in order to mortgage the land use right at the bank, a certificate of land use right is required. In your case, the handwritten paper will not be valid as collateral at the bank. To avoid future troubles as well as facilitate the exercise of land users’ rights, you should go to a competent agency to carry out procedures for granting a land use right certificate.
Source: According to kiemsat.vn
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