GUARANTEE FOR SALE OR HIRE-PURCHASE OF OFF-PLAN HOUSES
At the Circular No. 13/2017/TT-NHNN dated September 29, 2017 of the State Bank of Vietnam on amending the Circular No. 07/2015TT-NHNN dated June 25, 2015 by the Governor of the State Bank of Vietnam on bank guarantee.
A guarantee for sale or hire-purchase of off-plan houses (hereinafter referred to as the “guarantee for off-plan houses”) is considered as a bank guarantee whereby the commercial bank undertakes to act on behalf of the investor to fulfill their financial obligations to the purchaser or the hire-purchaser (hereinafter referred to as the “purchaser”) in the event the investor fails to transfer the house to the purchaser on the agreed-upon schedule without returning or insufficiently returning payment sums and others paid according to the signed contract for purchase or hire-purchase of house to the purchaser. The investor must take on their debt obligations and repay the commercial bank.
A commercial bank is capable of giving guarantees for off-plan houses if its license for establishment and operation, or the document stating any amendment or modification to this license includes bank guarantee operations; and it is not prohibited from giving guarantees for off-plan house while it is under a special control. The State Bank of Vietnam shall publish the list of commercial banks capable of giving guarantees for off-plan houses in each period on its website.
Also in accordance with this Circular, within 10 working days from the signing date of the contract for purchase or hire-purchase of house which stipulates the investor's obligations to return payment sums and others received from the purchaser to the purchaser in the event the investor fails to transfer the house to the purchaser on the agreed-upon schedule, the investor must send such contract for purchase or hire-purchase of house to the commercial bank; within 5 working days from the receipt of the contract for purchase or hire-purchase of house, the commercial bank shall base on the received contract for purchase or hire-purchase of house and the guarantee agreement to make and send the guarantee commitment to the purchaser's address; and a guarantee commitment shall be valid from the issued date and remain valid at least 30 days after the date of house being transferred to the purchaser as agreed upon in the contract for purchase or hire-purchase of house.
This Circular takes effect on November 15, 2017.
