2. The principle that the land use right is consistent with the above-ground buildings. When the land use right is mortgaged, the above-ground buildings, other attachments and all rights and interests are mortgaged together. Therefore, when signing the land use right mortgage agreement, the above-ground buildings, attachments and their rights and interests should be listed in detail.
3. Insurance issues. If the land use right is mortgaged and there are buildings or other attachments on the land, the mortgagor shall go through the insurance formalities for the above-ground buildings, and indicate in the insurance policy that the mortgagee is the first beneficiary, and the term of the insurance contract shall be longer than the term of the mortgage agreement.
4. When the land use right is mortgaged, the registration formalities shall be handled. If the land use right of raw land or buildings is not mortgaged, it should be registered with the land management authority first, and then with the real estate management bureau. If the land use right is mortgaged with buildings or other attachments on the ground, you only need to register with the real estate administration and apply for his right certificate.
5. Before the land use right is mortgaged, the applicant shall be appraised by the appraisal institution. Under normal circumstances, the mortgagor mortgages his land use right in the hope of obtaining loans from banks or financial institutions, and one of the bases of the loan amount of financial institutions is the value of the land use right. Therefore, before mortgage, an appraisal agency with real estate appraisal qualification should be invited to conduct appraisal. The mortgagee will make a decision on whether to accept the mortgage according to the evaluation report.
6. Resolutions of the board of directors. If the mortgagor is a foreign-funded enterprise, it must provide the decision of the board of directors to agree to the mortgage before the mortgage, and the joint stock limited company must provide the resolution of the shareholders' meeting and the board of directors to agree to the mortgage.
7. A lawyer should be asked to issue a legal opinion. In order to prove the subject qualification of the mortgagor, the legality, validity and authenticity of the land use right, and the legality and feasibility of the whole mortgage process of the land use right, and protect the rights and interests of the mortgagee, the mortgagee shall hire a lawyer to issue a legal opinion on the mortgage issue.
8. The land use right shall be notarized when mortgaged. Because the mortgage of land use right involves the mortgage of real estate, the subject matter is significant, so when signing the mortgage agreement of land use right, the mortgagor and the mortgagor should go through notarization procedures at the State Notary Office.
9. When disposing of collateral, it shall apply to the real estate management agency for assistance. When the mortgagor fails to perform his obligations within the time limit stipulated in the mortgage agreement, or the mortgagor is dissolved or bankrupt within the validity period of the agreement, the mortgagee may dispose of the mortgaged property-land use right according to the relevant national laws and the provisions of the mortgage agreement. When dealing with the land use right, the mortgagee shall apply to the land management department for assistance in handling the mortgaged land use right, and go through the formalities for the transfer of the land use right.
10. End of mortgage. If the land use right mortgage agreement expires or is revoked for other reasons, the mortgage agreement cancellation procedures shall be handled with the land management department and the real estate management department.