First, the nature and purpose of provident fund guarantee
Provident fund guarantee refers to the guarantee of other loans or borrowings with the funds in the personal provident fund account as the guarantee. This kind of guarantee is particularly common in real estate transactions and is used to support the loan application of buyers. The purpose of provident fund guarantee is to increase the reliability of loan application, reduce loan risk and help property buyers get loans smoothly.
Second, the cancellation conditions of provident fund guarantee
The cancellation of provident fund guarantee is not based on the passage of time, but needs to meet specific conditions. These conditions usually include full repayment of the loan, termination of the guarantee agreement or other circumstances stipulated by relevant laws. Only when these conditions are met will the provident fund protection be cancelled.
Specifically, if the property buyers successfully repay all the loans, the provident fund guarantee will naturally be cancelled. In addition, if the guarantee agreement is dissolved by both parties through consultation for some reason, or the guarantee needs to be dissolved according to the law, then the provident fund guarantee will also be cancelled.
Three, provident fund guarantee cancellation procedures
Cancel the provident fund guarantee, usually need to go through certain procedures. Property buyers need to communicate with lending institutions or relevant departments to understand the specific requirements and procedures for canceling the guarantee. Generally speaking, relevant application materials and supporting documents need to be submitted. After the review by the lending institution or relevant departments, the guarantee shall be released.
In this process, buyers need to pay attention to keep relevant vouchers and documents so as to provide proof when necessary. At the same time, we should also pay attention to the follow-up matters after the cancellation, such as the change of provident fund accounts.
To sum up:
Provident fund guarantee will not be cancelled automatically after one year, but certain conditions and procedures need to be met. Property buyers need to know the conditions and procedures for canceling the guarantee, so as to apply for canceling the guarantee at an appropriate time. At the same time, we should also pay attention to related matters after the cancellation of the guarantee to ensure that personal rights and interests are protected.
Legal basis:
People's Republic of China (PRC) Securities Law
Article 2 provides that:
In economic activities such as lending, trading, goods transportation, processing, contracting, etc., if creditors need to guarantee the realization of their creditor's rights by way of guarantee, they may establish a guarantee in accordance with the provisions of this Law.
This clause clarifies the legality and necessity of guarantee in economic activities. As a form of guarantee, the establishment and revocation of provident fund guarantee should follow the provisions of the guarantee law.
Regulations of People's Republic of China (PRC) Municipality on Housing Provident Fund
Article 28 provides that:
"Workers who use housing provident fund loans to buy housing shall set a mortgage on the purchased housing. The borrower shall sign a mortgage contract with the entrusted bank and go through the mortgage registration procedures. "