Is Car Title Loan Notarization Required in Vietnam?

Anh Tuan, owner of a small construction material shop on Nguyen Trai Street, Ha Dong, always dreamed of owning a Hyundai truck to facilitate his business. After years of saving, he finally accumulated enough money to buy a used 2020 truck from Thanh Cong truck dealership on Pham Hung Street. However, he only had enough for a down payment. To bring the truck home, Anh Tuan decided to take out a bank loan and use the Hyundai truck as collateral. The question “Does a car title loan require notarization?” left him wondering. Are there any complicated procedures? Anh Tuan sought advice from XE TẢI HÀ NỘI.

Is Car Title Loan Notarization Required?

Whether or not a car title loan requires notarization is a question of great concern to many, especially those who need a bank loan. According to the 2014 Law on Notarization and Circular No. 03/2016/TT-BTP of the Ministry of Justice, a property mortgage contract must be notarized.

This means that when you want to use a car (including a truck) as collateral for a loan from an individual or organization, you must have the mortgage contract notarized at a competent authority. This ensures the legality of the contract and protects the rights of the parties involved.

Why Must a Car Title Loan Contract Be Notarized?

• Ensures Legality: A notarized contract is legally valid, helping parties avoid legal risks later.
• Protects Rights: A notarized contract clearly states the rights and obligations of each party, helping to resolve disputes (if any) more easily and transparently.
• Simple Procedures: The procedures for notarizing a car title loan contract are now quite simple and fast. You just need to prepare all the necessary documents and go to a competent authority.

Steps to Notarize a Car Title Loan Contract

To notarize a car title loan contract, you need to follow these steps:

1. Prepare Documents: Includes personal identification documents of the mortgagor and mortgagee, vehicle registration, household registration book, ID card, etc.
2. Draft the Contract: The mortgage contract needs to be drafted in detail, clearly stating information about the mortgagor, mortgagee, collateral, asset value, mortgage term, etc.
3. Submit Documents and Notarize: Bring the prepared documents to a notary public or notary office for verification and notarization.
4. Receive Results: After completing the notarization procedure, you will receive the original notarized contract.

Frequently Asked Questions About Car Title Loans

Can a mortgaged car be repossessed?

Repossession of a mortgaged car only occurs when the mortgagor violates the terms specified in the contract, such as failing to repay the debt on time.

Where is a reputable place to get a car title loan?

You should choose reputable banks or credit institutions for car title loans.

Note: The information in this article is for reference only. For specific advice on your situation, you should contact legal experts or competent authorities directly.

Want to learn more about car purchase contracts? Check out the article Car Purchase Contract 2019.

Car title loan

Bank and car loan

Car title loan contract

XE TẢI HÀ NỘI – Providing reputable, quality trucks at competitive prices in Hanoi. Contact us now for advice and to own your dream truck!