Buying an apartment mortgaged to a bank: how to release the mortgage safely

Legal basis: 2015 Civil Code (No. 91/2015/QH13) — Article 320 clause 8, Article 321 clause 5, Article 328, Article 330 · Decree 99/2022/NĐ-CP on registration of security interests, Article 20 · 2023 Law on Housing, Article 164 · Updated 20 October 2026.

A mortgaged apartment may only be sold with the mortgagee bank's consent (2015 Civil Code, Article 321 clause 5); selling without the bank's consent breaches the mortgagor's obligations (Article 320 clause 8). So a safe transaction always involves the bank, and the money repaying the loan goes straight to the bank rather than through the seller. The original pink book is held by the bank — only after the mortgage is deregistered do the parties notarise the sale contract and transfer the title.

1. Before paying a deposit: verify the loan

• Ask the seller to obtain a statement of the outstanding balance from the bank: principal, interest and early repayment fees up to the planned settlement date.
• Ask whether the bank agrees to the sale and to early settlement; some loan agreements carry an early repayment penalty.
• Ask for a copy of the mortgage contract to see whether the unit also secures other loans (one pink book can secure several loans).
• Check the mortgage and any blocking orders at the land registration office and with a notary office — as for any unit with a pink book (see buying an apartment with a pink book).

2. Three safe ways to release the mortgage

Option 1 — A three-party agreement at the bank. The buyer, the seller and the bank sign an agreement: the buyer transfers exactly the settlement amount (principal, interest, fees) into the loan repayment account at the bank; the bank settles the loan, returns the original pink book and signs the mortgage release documents; the parties notarise the sale contract; the buyer pays the rest to the seller and the title is transferred. The agreement should state: the amount, the receiving account, when the bank returns the pink book, who holds the pink book after release, and what happens if one party does not sign the sale contract.

Option 2 — An escrow deposit in a blocked account. An escrow deposit means placing money in a blocked account at a credit institution to secure performance of an obligation (Civil Code, Article 330). The buyer pays into the blocked account; the money is only released to the seller (or used to repay the loan) once the conditions the parties agreed are met — for example, the bank has returned the pink book and the sale contract has been notarised. If the conditions are not met, the money goes back to the buyer as agreed.

Option 3 — The seller swaps the collateral. The seller mortgages another asset to the bank to take the apartment's pink book back; once the mortgage is deregistered, the sale proceeds like an unmortgaged unit. This needs none of your money, but depends on the bank accepting the replacement asset.

Buying a unit that a bank is selling to recover debt (auction, sale of liquidated assets) is a different case: the procedure follows the notice from the bank or the auction organisation, and an advance deposit is usually required.

3. How long deregistering the mortgage takes

Once the bank has received the full amount and agrees to release, the file — the deregistration request form (Form No. 03a) and the original pink book — is submitted to the land registration office. It is usually done on the working day a valid file is received; files submitted after 3 pm may be done on the next working day; with good reason it can take longer, but no more than 3 working days (Decree 99/2022/NĐ-CP).

4. Common risks

Risk	Prevention
Giving the money to the seller "to repay the bank themselves", and the seller does not repay	Only transfer to the loan repayment account at the bank or to a blocked account
The loan is repaid, then the seller changes their mind and does not sell	The three-party agreement states the deposit penalty (Article 328) and who holds the pink book; consider a notarised deposit contract
The settlement amount is higher than expected (interest, early repayment penalty)	Get a balance statement for the exact settlement date
The pink book secures several loans	Read the mortgage contract; have the bank confirm all secured obligations
The unit has a blocking order or a dispute besides the loan	Check at the land registration office and a notary office before paying a deposit

Reference example (assumption: purchase price 3 billion dong, settlement balance 1.2 billion dong): you transfer 1.2 billion into the loan repayment account under the three-party agreement; the bank returns the pink book and releases the mortgage; the contract is notarised; you pay the remaining 1.8 billion to the seller (possibly through a blocked account, released once the title transfer file has been submitted). For title transfer costs, see procedure and costs of transferring an apartment title.

5. Buying with a loan

If you borrow to buy, your bank will need to take a mortgage on this unit after the title transfer. Ask in advance: will your bank disburse to repay the seller's bank, and is disbursement before or after notarisation? Borrowing from the same bank that holds the pink book can be simpler, as one bank handles both the release and the new mortgage. Estimate your monthly payments with the home-buying cash-flow calculator.

This article is for reference only and does not replace legal or financial advice for your specific case.

1. The seller obtains a balance statement (principal, interest, early repayment fees) and the bank's written consent to the sale and early settlement.
2. Check the mortgage and any blocking orders at the land registration office and a notary office.
3. Sign a deposit contract stating: the price, the amount paid to settle the loan, the receiving account (loan repayment account at the bank or a blocked account), the release deadline, the notarisation deadline and the deposit penalty.
4. Sign a three-party agreement with the bank (or open a blocked account as agreed).
5. Transfer the settlement amount to exactly the account stated; get the bank's settlement confirmation.
6. The bank returns the original pink book and signs the mortgage release documents; submit the deregistration file to the land registration office.
7. Notarise the sale contract; pay the remaining amount as agreed.
8. Within 30 days of notarisation: file for title transfer and declare the 2% tax and the 0.5% registration fee.
9. Receive the pink book in your name; if you borrowed, sign a new mortgage with your bank.

Sources in Vietnamese; titles kept in the original, with a short English translation in brackets.

• Bộ luật Dân sự số 91/2015/QH13 (Civil Code No. 91/2015/QH13) — Articles 320, 321, 328, 330: full text, Dak Lak Department of Justice, 24 November 2015.
• Vietnam Banks Association — Hướng dẫn giải chấp sổ đỏ tại ngân hàng (Guide to releasing a land certificate mortgage at a bank — Decree 99/2022/NĐ-CP), 6 July 2025.
• VIB — Mua nhà thế chấp ngân hàng (Buying a home mortgaged to a bank — three-party agreement, swapping collateral, buying liquidated assets), 27 September 2024.
• VnExpress — Bán nhà đang thế chấp (Selling a mortgaged home — a view on the draft amended Law on Housing), 22 July 2026.
• Luật Nhà ở số 27/2023/QH15 (Law on Housing No. 27/2023/QH15) — Article 164: full text on caselaw.vn, 27 November 2023.