What is a property mortgage contract?
Article 317 of the 2015 Civil Code regulates that mortgage of property is the practice of one party (hereinafter referred to as the mortgagor) using property under his/her ownership to secure the performance of an obligation and not handing over the property to the other party (hereinafter referred to as the mortgagee). At the same time, the mortgaged property is held by the mortgagor. The parties may agree to assign a third person to keep the mortgaged property.
The templates of property mortgage contract
First template of property mortgage contract
PROPERTY MORTGAGE CONTRACT
No.: _____________
The Mortgagor:
The Mortgagee
Mortgaged Property and value of Mortgaged Property
Mortgaged Property
Information about the property
Ownership documents
Value of Mortgaged Property: […] (In words: […])
Article 2. Registration of security interest
Article 3. Liability for breach of the Contract
Article 4. Force majeure
Article 5. Rights and obligations of the Parties
Article 6. Validity and termination of the Contract
Article 7. Dispute settlement
Article 8. General terms
Second template of property mortgage contract
THIS MORTGAGE AGREEMENT is made on …, by and between:
THE MORTGAGOR:
AND
THE MORTGAGEE:
IT IS HEREBY AGREED AS FOLLOWS:
Article 1. DEFINITIONS
Article 2. MORTGAGED PROPERTIES
The Mortgaged Properties shall consist of all properties listed below:
[…]; and
Article 3. VALUE OF THE MORTGAGED PROPERTIES
The parties agree that value of the Mortgaged Properties shall be _____ VND (in words: _________ dong);
Article 4. SECURITY REGISTRATION AND FEE PAYMENT
Article 5. OWNERSHIP DOCUMENTS
Article 6. THE RIGHTS OF THE MORTGAGEE
Article 7. THE OBLIGATIONS OF THE MORTGATOR
Article 8. INSURANCE
Article 9. ENFORCEMENT OF THE SECURITY
Article 10. COSTS AND EXPENSES
Article 11. CHANGES TO THE PARTIES
Article 12. THE PARTIES’ UNDERTAKINGS
Article 13. NOTICES
Article 14. GOVERNING LAW AND DISPUTE RESOLUTION
Article 15. FINAL PROVISION
Above is an overview article about the template of a property mortgage contract. If you have a demand or difficulty in drafting a property mortgage contract, please contact us: Phuoc & Partners is a professional consulting firm established in Vietnam and currently has nearly 100 members working in three offices in Ho Chi Minh City, Hanoi and Danang. Phuoc & Partners is also rated as one of the leading consulting firms specializing in business law in Vietnam that has leading practice areas in the legal market such as Intellectual Property, Labour and Employment, Taxation, Merger and acquisition, Litigation. We are confident in providing Clients with optimal and effective legal service.
