Vietnam Law has general provisions on auction activities. Let’s find out this issue with Lawyer X through the following situation: “Dear Lawyer! I want to ask what are principles for property auction in Vietnam? What are regulations on reserve price and appraisal of property to be auctioned? Thanks for answering my questions!”
Legal grounds
- 2016 Vietnam Law on Property Auction.
Principles for property auction
Principles for property auction copmprise:
– Compliance with law.
– Assurance of independence, honesty, publicity, transparency, equality and objectivity.
– Protection of lawful rights and interests of auctioned property sellers, bidders, winning bidders, auctioned property buyers, property auction organizations and auctioneers.
– Auctions shall be conducted by auctioneers, except those conducted by property auction councils.
Protection of lawful rights and interests of bona fide auctioned property sellers, bidders, winning bidders and auctioned property buyers
– Competent state agencies shall, within the ambit of their tasks and powers, guarantee the exercise of lawful rights and interests of bona fide auctioned property sellers, bidders, winning bidders and auctioned property buyers.
– In case there is a third party disputing for the ownership of an auctioned property item, such ownership shall still belong to the bona fide auctioned property buyer.
The settlement of a dispute over the ownership of an auctioned property item, a complaint or lawsuit about the legal validity of a successful auction, and the cancellation of property auction results prescribed in Clauses 2, 3 and 4, Article 72 of 2016 Vietnam Law on Property Auction shall be effected according to summary procedures prescribed by the civil procedure law.
– In case there is a judgment or decision of a competent state agency on partial modification or whole cancellation of decisions related to a property item before such property is put for auction but the property auction order and procedures still comply with 2016 Vietnam Law on Property Auction, such property shall still be under the ownership by the bona fide buyer, except where the property auction results are cancelled under Article 72 of 2016 Vietnam Law on Property Auction.
Reserve price and appraisal of property to be auctioned
– The reserve price of an auctioned property item shall be determined before:
+ The signing of a property auction service contract;
+ A property auction council is formed, unless otherwise provided by law;
+ The wholly state-owned organization established by the Government to settle non- performing loans of credit institutions conducts by itself the auction.
– The reserve price of an auctioned property item shall be determined as follows:
+ For the types of auctioned property specified in Clause 1, Article 4 of 2016 Vietnam Law on Property Auction, their reserve prices shall be determined under the relevant regulations applicable to such types of property;
+ For the types of auctioned property specified in Clause 2, Article 4 of 2016 Vietnam Law on Property Auction, their reserve prices shall be determined by their sellers or by property auction organizations or other individuals or organizations as authorized by their sellers.
– An auctioned property item shall be appraised in accordance with law or at the request of bidders and with the consent of its seller. The appraisal order and procedures must comply with the relevant regulations applicable to relevant types of property. In case of appraisal upon request, the requester shall pay appraisal expenses.
Prohibited acts in auction in Vietnam
– Auctioneers are prohibited to commit the following acts:
+ Letting other individuals or organizations use their auction practice certificates;
+ Taking advantage of their capacity as auctioneers to act for the self-seeking purpose;
+ Colluding or being in cahoots with auctioned property sellers, bidders, price assessment organizations, auctioned property appraisal organizations and other individuals or organizations to falsify information about auctioned property, suppress prices, falsify auction dossiers or property auction results;
+ Illegally preventing individuals and organizations from participating in auctions;
+ Violating the professional code of ethics of auctioneers;
+ Committing other prohibited acts prescribed by relevant laws.
– Property auction organizations are prohibited to commit the following acts:
+ Letting other organizations use their names or operation registration certificates for auction practice;
+ Colluding or being in cahoots with auctioned property sellers, bidders, price assessment organizations, auctioned property appraisal organizations and other individuals or organizations to falsify information about auctioned property, suppress prices, falsify auction dossiers or property auction results;
+ Obstructing or causing difficulties to bidders in registering their participation in an auction or participating in an auction;
+ Disclosing information about registered bidders for the self-seeking purpose;
+ Receiving from auctioned property sellers any money amount, property or benefit other than auction service remuneration or property auction expenses as prescribed by law or other service charges related to auctioned property as agreed upon;
+ Committing other prohibited acts as prescribed by relevant laws.
– Property auction councils are prohibited to commit the acts prescribed at Points b, c, d and e, Clause 2 of this Article.
– Auctioned property sellers are prohibited to commit the following acts:
+ Colluding or being in cahoots with auctioneers, property auction organizations, and other individuals or organizations to falsify information about auctioned property, suppress prices, falsify auction dossiers or property auction results;
+ Receiving from auctioneers, property auction organizations or bidders any money amount, property or benefit in order to falsify property auction results;
+ Committing other prohibited acts as prescribed by relevant laws.
– Bidders, winning bidders and other individuals and organizations are prohibited to commit the following acts:
+ Providing untruthful information and documents; using forged papers to register their participation in an auction or to participate in an auction;
+ Colluding or being in cahoots with auctioneers, property auction organizations, auctioned property sellers, other bidders and other individuals or organizations to suppress prices or falsify property auction results;
+ Obstructing property auction activities; disturbing or causing disorder at an auction;
+ Intimidating or forcing auctioneers or other bidders to falsify property auction results;
+ Committing other prohibited acts as prescribed by relevant laws.
Please see more:
- Instructions for exclusive registration of company logos in Vietnam
- Service of changing the legal representative of Vietnamese enterprises
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Frequently asked questions
– The reserve price of an auctioned property item shall be determined before:
+ The signing of a property auction service contract;
+ A property auction council is formed, unless otherwise provided by law;
+ The wholly state-owned organization established by the Government to settle non- performing loans of credit institutions conducts by itself the auction.
The reserve price of an auctioned property item shall be determined as follows:
+ For the types of auctioned property specified in Clause 1, Article 4 of 2016 Vietnam Law on Property Auction, their reserve prices shall be determined under the relevant regulations applicable to such types of property;
+ For the types of auctioned property specified in Clause 2, Article 4 of 2016 Vietnam Law on Property Auction, their reserve prices shall be determined by their sellers or by property auction organizations or other individuals or organizations as authorized by their sellers.
Auctioneers are prohibited to commit the following acts:
+ Letting other individuals or organizations use their auction practice certificates;
+ Taking advantage of their capacity as auctioneers to act for the self-seeking purpose;
+ Colluding or being in cahoots with auctioned property sellers, bidders, price assessment organizations, auctioned property appraisal organizations and other individuals or organizations to falsify information about auctioned property, suppress prices, falsify auction dossiers or property auction results;
+ Illegally preventing individuals and organizations from participating in auctions;
Conclusion: So the above is General provisions on auction activities in Vietnam. Hopefully with this article can help you in life, please always follow and read our good articles on the website: lsxlawfirm.com
