The procedure for mortgage deregistration in secured transactions: From legal provisions to practical application in Viet Nam

Abstract

This paper examines the procedure for deregistering mortgage security within the framework of current legislation and its practical application at Land Registration Offices in Viet Nam. Applying analytical and normative-comparative methods combined with practical data drawn from the processing procedures at several land registration offices, the study reveals a lack of uniformity: some offices allow simultaneous deregistration and new registration, while others require deregistration to be completed before accepting subsequent transactions. The “deregister first- register later” interpretation lacks a solid legal basis and results in duplicated procedures, prolonged processing time, and increased compliance costs. Based on these findings, the paper recommends shortening the processing time for cases involving only deregistration, permitting simultaneous procedures when a new registration is requested, issuing unified inter-agency guidelines, developing an integrated electronic database, and strengthening coordination and oversight mechanisms. The study clarifies the distinction between the legal nature of extinguishing a mortgage and the administrative implementation in practice, thereby proposing reforms to enhance transparency, consistency, and effectiveness within the secured transaction registration system