1. Does the mortgage of construction in progress include land?
The mortgage of construction in progress includes land. Property ownership certificate and land use right are interdependent, and comprehensive mortgage of real estate is a legal system of "where the house goes, the land goes with the house". Therefore, the projects under construction are mortgaged, that is, including land, rather than separating the two.
Legal basis: Civil Code of People's Republic of China (PRC).
Article 397 Where a building is mortgaged, the right to use the construction land within the occupied area of the building shall be mortgaged together. Where the right to use construction land is mortgaged, the buildings on the land shall be mortgaged together.
If the mortgagor fails to jointly mortgage in accordance with the provisions of the preceding paragraph, the mortgaged property shall be regarded as joint mortgage.
Article 398 The right to use the construction land of township enterprises shall not be mortgaged separately. Where buildings such as factories of township enterprises are mortgaged, the right to use the construction land occupied by them shall be mortgaged together.
Second, the risk of mortgage of construction in progress
1, ownership risk
The rights of projects under construction include land use rights and ownership of Jian 'an projects. Land use rights can be obtained through allocation or transfer. The main risks are: whether the right subject is clear, whether there is ownership dispute, whether the set land area is clear, and whether the land use period is shorter than the loan period.
Construction and installation project refers to the building contracted by the contractor after completing certain construction application procedures and a certain number of construction and installation projects. On the one hand, the risk is whether a certain construction application procedure has been handled, that is, whether the "one book and two certificates" (site selection opinion, construction land planning permit and construction project planning permit) of the Planning Bureau and the "construction permit" of the Construction Management Bureau have been handled; On the other hand, risk is the risk of the contractor's advance payment.
2. Value risk
The causes of value risk are: evaluation, market and ownership definition.
Due to the numerous real estate appraisal institutions, the appraisal level of appraisers is uneven. When the evaluation result is higher than the normal and reasonable market value, the risk of the loan increases sharply. Sometimes, in order to save the relevant expenses for developers, the loan officer estimates for himself. Due to the lack of professional evaluation knowledge, the error of estimation results may be great, which may also cause loan risk.
The Code for Real Estate Appraisal stipulates that the appraisal of real estate mortgage price is based on the normal market value of the appraised object at the time of loan issuance. [3]
There may be a big difference between the evaluation value when issuing loans and the disposal price when disposing of collateral, which may lead to loan risks.
Some real estate development projects are joint development, especially the joint development where one party provides land and the developer provides development funds. The developable land provided by land supply can be allocated land or leased land. The mortgage value of allocated land is lower than that of transferred land.
Projects under construction on allocated land (except the development of affordable housing) may not be able to apply for the pre-sale permit of commercial housing, resulting in the failure to pre-sell projects, the failure to recover development funds on schedule, and the failure to recover bank loans on schedule, resulting in loan risks. On the other hand, the evaluation value of construction in progress of such joint venture and cooperative development projects can only be properly divided according to the relevant clauses stipulated in the joint venture and cooperative development contract, and it cannot be regarded as all owned by the developer, thus causing loan risk.
3. Quality risk
In order to reduce the development cost, the developer takes the reasonable lowest price as one of the winning conditions after implementing the bill of quantities in the bidding process of construction projects, which makes the contractor bid at a very low price in order to win the bid. After winning the bid, there may be some illegal acts in the construction process, such as cutting corners, shoddy and shoddy, which may cause quality hidden dangers. When the mortgagee disposes of the project under construction, there are quality problems, and the disposal price will be much lower than the normal price, which will cause loan risk.
4. Registration risk
Only after the mortgage registration, the loan bank is the real mortgagee and can enjoy the priority of compensation. Some loan banks do not handle mortgage registration, notarization and insurance procedures without authorization according to the reputation of developers. When the developer fails to perform the contract, it will cause loan risk.
5. Repetitive risk
If the land management department and the real estate management department are separated, the land mortgage shall be registered in the land management department, and the projects under construction (including land) shall be registered in the real estate management department. When developers use separate land and projects under construction (including land) to apply for mortgage loans in different banks, and at the same time, because the information of the real estate management department and the land management department is not interoperable, they apply for mortgage registration respectively, resulting in the same land being mortgaged twice, which may cause loan risks.
After the mortgage registration, the project under construction is still sold, and another bank handles the mortgage, and the mortgage amount does not belong to the loan amount for restoring the mortgage of the project under construction of this suite, resulting in repeated mortgage of the property and loan risk.
Step 6 deal with risks
Disposal of projects under construction will affect the image of developers and development projects. At the same time, the disposal behavior is unfair market behavior, which makes the disposal value of the project far lower than the market value, thus causing the risk that the loan cannot be fully recovered.
The mortgage of the project under construction can avoid the above risks well, thus ensuring the mortgage of the project under construction well.
Construction in progress refers to approved houses or other buildings under construction. According to regulations, this kind of building can also be mortgaged. According to the principle of the integration of real estate and premises, after the floor under construction is mortgaged, the land use right within the scope of the project under construction is also mortgaged, regardless of whether there is an agreement between the parties.