Concept and issues of property loan contract disputes | iGuide

iGuide Stories

Concepts and issues related to property loan contract disputes

This article provides an overview of the concept and issues related to property loan contract disputes. It explains the factors leading to disputes, current legal regulations and effective ways to resolve disputes, helping the parties involved protect their rights and maintain sustainable cooperative relationships.

Cause of occurrence property loan contract dispute Usually due to the borrower not paying money or goods on time, not paying interest as agreed in the contract to the lender.

1. Regulations on asset loan contracts

According to Article 463 of the 2015 Civil Code, “A property loan contract is an agreement between the parties, according to which the lender delivers property to the borrower; when the payment is due, the borrower must return to the lender property of the same type in the correct quantity and quality and only pay interest when agreed or prescribed by law.”

2. Rights and obligations of the parties in the contract

The rights and obligations of the lender are stipulated in Article 465 of the Civil Code as follows:

Deliver the assets to the borrower in full, with the correct quality and quantity at the agreed time and place.
Compensate the borrower for damages if the lender knows that the property is not of guaranteed quality but does not notify the borrower, except in cases where the borrower knows but still accepts the property.
The borrower shall not be required to return the property before the due date, unless otherwise provided by relevant laws.
In case the parties have an agreement on the purpose of using the borrowed property, if the borrower uses it for the wrong purpose, the lender has the right to reclaim the property.

The rights and obligations of the borrower are stipulated in Article 466 of the 2015 Civil Code as follows:

The borrower of money must repay the full amount when due; if the property is an object, the borrower must return an object of the same type, quantity and quality, unless otherwise agreed.
In case the borrower cannot return the item, he can pay in cash the value of the borrowed item at the place and time of repayment, if agreed by the lender.
In case of an interest-free loan, if the borrower fails to repay or does not repay in full when due, the lender has the right to request payment of interest at the interest rate prescribed in Clause 2, Article 468 of this Code on the amount of overdue payment corresponding to the period of overdue payment, unless otherwise agreed or otherwise provided by law.
In case of interest-bearing loans, if the borrower fails to repay or does not repay in full when due, the borrower must pay interest.

3. Types of interest the borrower must pay

Interest on the principal at the interest rate agreed in the contract corresponding to the loan term that has not been paid by the due date; in case of late payment, interest must also be paid at the interest rate prescribed in Clause 2, Article 468 of this Code;
Interest on overdue principal is equal to 150% of the contractual loan interest rate corresponding to the period of overdue payment, unless otherwise agreed.

4. Method of resolving disputes over property loan contracts

When it happens property loan contract dispute The parties should agree and negotiate to resolve this issue on the principle of mutual respect, aiming for the most beneficial result for both parties.

In case the parties cannot agree on a solution, they may request the Court to resolve the dispute.

5. Pursuant to the provisions of Article 5 of the 2015 Civil Procedure Code

The parties have the right to file a lawsuit requesting the Court to resolve the dispute.

A property loan contract is a civil contract as prescribed in Article 26 of the Civil Procedure Code. Pursuant to Article 39 of the 2015 Civil Procedure Code, the competent court to resolve disputes will be the district court where the defendant resides or works, if the defendant is an individual, or where the defendant has its headquarters, if the defendant is an agency or organization.

In addition, the parties have the right to agree with each other in writing to request the Court at the place of residence or work of the plaintiff, if the plaintiff is an individual, or at the place of headquarters of the plaintiff, if the plaintiff is an agency or organization, to resolve the dispute.