Vietnam law has regulations on property auction organizations. Let’s find out this issue with Lawyer X through the following situation: “Dear Lawyer! I want to ask what are regulations on property auction service centers in Vietnam? What are regulations on property auction businesses in Vietnam? Thanks for answering my questions!”
Legal grounds
- 2016 Vietnam Law on Property Auction
Regulations on Property auction service centers
– Property auction service centers shall be established under decisions of provincial- level People’s Committees.
– Property auction service centers are public non-business units of provincial-level Justice Departments, have their offices, own seals and bank accounts. Directors of property auction service centers are auctioneers.
Regulations on Property auction businesses
– Property auction businesses shall be established and organized and operate as private businesses or partnerships in accordance with 2016 Vietnam Law on Property Auction and other relevant laws.
– The name of a private auction business shall be given by its owner while the name of an auction partnership may be chosen by its members as agreed upon in accordance with the Law on Enterprises but must include the phrase “private auction business” or “auction partnership”.
– Conditions for registration of operation of a property auction business:
+ A private auction business has its owner being an auctioneer who is concurrently its director. An auction partnership has at least one general partner being an auctioneer and its general director or director being an auctioneer;
+ It has an office, physical foundations and equipment necessary for property auction activities.
– The activities relating to the establishment, organization, operation and termination of operation of property auction businesses not prescribed in 2016 Vietnam Law on Property Auction must comply with the law on enterprises.
Rights and obligations of property auction organizations
– Property auction organizations have the following rights:
+ To provide property auction services in accordance with 2016 Vietnam Law on Property Auction;
+ To recruit auctioneers to work for them in accordance with law;
+ To request auctioned property sellers to provide sufficient and accurate information and papers related to the auctioned property;
+ To receive auction service remuneration and property auction expenses under property auction service contracts;
+ To appoint auctioneers to conduct auctions;
+ To provide the service of carrying out the procedures for transferring the property ownership, use and management rights and other services related to the auctioned property as agreed upon;
+ To determine reserve prices of to be-auctioned property prescribed in Clause 2, Article 4 of 2016 Vietnam Law on Property Auction as authorized by property sellers;
+ To assign auctioneers to instruct auction practice interns;
+ To unilaterally terminate or cancel property auction service contracts or request the court to declare property auction service contracts null and void in accordance with the civil law and 2016 Vietnam Law on Property Auction;
+ Other rights provided by law.
– Property auction organizations have the following obligations:
+ To conduct property auction according to the principles, order and procedures prescribed in 2016 Vietnam Law on Property Auction and take responsibility for property auction results;
+ To promulgate a rule of auction under Article 34 of 2016 Vietnam Law on Property Auction and other relevant laws;
+ To organize auctions continuously at the notified time and venues, except where it is impossible to do so due to force majeure events;
+ To request auctioned property sellers to hand over property and relevant title deeds to auctioned property buyers. In case they are authorized by auctioned property sellers to preserve or manage auctioned property, to hand over such property and relevant title deeds to buyers;
+ To pay compensations for damage caused during the property auction in accordance with law;
+ To perform obligations under property auction service contracts;
+ To keep books to monitor auctioned property and auction registers;
+ To request provincial-level Justice Departments of localities where they are located to grant or revoke auctioneer cards;
+ To purchase insurance for professional liability of their auctioneers under Article 20 of 2016 Vietnam Law on Property Auction;
+ To report to provincial-level Justice Departments of localities where they are located lists of their practicing auctioneers and auction practice interns;
+ To report to provincial-level Justice Departments of localities where they are located on their organization and operation on an annual basis or upon request. Businesses that have branches shall also report to provincial-level Justice Departments of localities where their branches register operation;
+ To fulfill examination and inspection requests of competent state agencies, n/ Other obligations prescribed by law.
Registration of operation of property auction businesses
– A business that satisfies the conditions prescribed in Article 23 of 2016 Vietnam Law on Property Auction shall send a dossier of request for registration of property auction operation to the provincial-level Justice Department of the locality where it is located and pay a charge prescribed by law. Such a dossier must comprise:
+ A written request for operation registration:
+ The business charter, for an auction partnership;
+ A certified copy or a copy enclosed with the original of the auction practice certificate of the private auction business’s owner, or the auction practice certificate of the general partner, general director or director of the auction partnership;
+ Papers proving the existence of the business’s office and written commitments to ensure physical foundations and equipment necessary for the property auction operation.
– Within 10 working days after receiving a complete and valid dossier, the provincial- level Justice Department shall grant an operation registration certificate to the requesting property auction business. In case of refusal to grant a certificate, it shall notify in writing the reason. The business that has its request for grant of an operation registration certificate rejected may file a complaint or initiate a lawsuit in accordance with law.
– A property auction business may commence its operation from the date it is granted an operation registration certificate.
Change in operation registration contents and re-grant of operation registration certificates of property auction businesses
– In case a property auction business changes its operation registration contents on its name, address of its head office, branch or representative office or its at-law representative:
+ Within 10 working days after it decides on the change, the business shall send a written request for the change to the provincial-level Justice Department of the locality where it has made the operation registration;
+ Within 5 working days after receiving a written request for the change, the provincial- level Justice Department shall decide on the change in operation registration contents for the property auction business. In case of rejection of the request, it shall notify in writing the reason. The business that has its request for the change in operation registration contents rejected may file a complaint or initiate a lawsuit in accordance with law.
– In case it has decided to change operation registration contents of a property auction business but later detects that information declared in the dossier of request for the change is untruthful, the provincial-level Justice Department shall issue a notice of the business’s violation and cancel the changes previously made in operation registration contents, and at the same time notify such to a competent agency for handling in accordance with law.
– In case a property auction business requests re-grant of its operation registration certificate which is lost, torn, burnt or otherwise destroyed:
+ The business shall send a written request for re-grant of such certificate to the provincial-level Justice Department of the locality where it has made the operation registration;
+ Within 7 working days after receiving the written request, the provincial-level Justice Department shall re-grant the operation registration certificate to the business. In case of rejection of the request, it shall notify in writing the reason. The business that has its request for re-grant of operation registration certificate rejected may file a complaint or initiate a lawsuit in accordance with law.
Provision of information on operation registration contents of property auction businesses
Within 7 working days after granting an operation registration certificate or changing operation registration contents of a property auction business, the provincial-level Justice Department concerned shall notify such in writing to the tax office, statistics office and planning and investment office of the locality where the business is located; and publish on its portal the business’s operation registration contents as specified in Clause 1, Article 28 of 2016 Vietnam Law on Property Auction.
Publication of operation registration contents of property auction businesses
– Within 30 days after being granted an operation registration certificate, a property auction business shall publish on three consecutive issues of a central daily or a daily of the locality where it has made the operation registration the following principal contents:
+ Its name;
+ Addresses of its head office, branches and representative offices;
+ Serial number and date of grant of its operation registration certificate, and place of operation registration;
+ Full name and serial number of the auction practice certificate of its owner; full names and serial numbers of auction practice certificates of general partners and general director or director of the auction partnership.
– In case of a change in its operation registration contents, a property auction business shall publicize such change under Clause 1 of this Article.
Branches of property auction businesses
– A branch of a property auction business may be established in or outside the province or centrally run city where such business has made its operation registration. The property auction business shall take responsibility for operation of its branches and appoint an auctioneer to act as the head of the branch.
– A property auction business shall submit a dossier for registration of operation of its branch to the provincial-level Justice Department of the locality where it is located. Such a dossier must comprise:
+ A written request for branch operation registration;
+ The branch establishment decision;
+ A certified copy or a copy enclosed with the original of the operation registration certificate of the business;
+ A certified copy or a copy enclosed with the original of the auction practice certificate of the branch head;
+ Papers proving the existence of the branch office.
– Within 7 working days after receiving a complete and valid dossier, the provincial- level Justice Department shall grant an operation registration certificate to the branch. In case of refusal to grant such certificate, it shall notify in writing the reason. The business that has its request for branch operation registration rejected may file a complaint or initiate a lawsuit in accordance with law.
– A branch shall commence its operation from the date it is granted an operation registration certificate. Within 7 working days after being granted a branch operation registration certificate, a business shall send a written notice enclosed with a copy of the branch operation registration certificate to the provincial-level Justice Department of the locality w here it has made its operation registration.
Representative offices of property auction businesses
– A representative office of a property auction business may be established in or outside the province or centrally run city where such business has made its operation registration. Representative offices may not conduct property auctions.
– Within 5 working days after establishing a representative office, a business shall notify in writing the address of such representative office to the provincial-level Justice Department of the locality where it locates the representative office and provincial-level Justice Department of the locality where it has made its operation registration.
Termination of operation of property auction businesses
– A property auction business shall terminate its operation in the following cases:
+ It is dissolved;
+ It is consolidated or merged with another business;
+ It falls bankrupt;
+ It has its operation registration certificate revoked under Clause 1, Article 32 of 2016 Vietnam Law on Property Auction.
– Within 7 working days after a property auction business terminates its operation, the provincial-level Justice Department shall notify such in writing to the tax office, statistics office and planning and investment office of the locality where the business is located; and publish on its portal information on termination of operation of the business.
Revocation of operation registration certificates of property auction businesses
– A property auction business shall have its operation registration certificate revoked in the following cases:
+ It no longer satisfies the conditions prescribed in Clause 3, Article 23 of 2016 Vietnam Law on Property Auction;
+ Contents declared in its operation registration dossier are untruthful;
+ It has ceased its operation for one year without notifying such to the provincial-level Justice Department of the locality where it has made operation registration;
+ It has been administratively sanctioned for failure to send reports under Point I, Clause 2, Article 24 of 2016 Vietnam Law on Property Auction and relapses into violation; + Another case as decided by the court.
– The revocation of the operation registration certificate of a property auction business shall be carried out according to the following order and procedures:
+ For the case specified at Point a, Clause 1 of this Article, the provincial-level Justice Department shall request in writing the property auction business to satisfy the conditions prescribed in Clause 3, Article 23 of 2016 Vietnam Law on Property Auction within 30 days after being requested. Upon the expiration of the above time limit, if the property auction business still fails to satisfy the conditions prescribed in Clause 3, Article 23 of 2016 Vietnam Law on Property Auction, the provincial-level Justice Department shall issue a decision to revoke the operation registration certificate of the business;
+ For the case specified at Point b, Clause 1 of this Article, the provincial-level Justice Department shall issue a notice on violation of the business and decide to revoke the operation registration certificate of the business;
+ For the case specified at Point c, Clause 1 of this Article, the provincial-level Justice Department shall send a written notice to the at-law representative of the business, requesting him/her to come to the office of the provincial-level Justice Department to make explanation. After 10 working days from the date of expiration of the time limit stated in the notice, if the requested representative fails to come to the office of the provincial-level Justice Department, it shall issue a decision to revoke the operation registration certificate of the business;
+ For the case specified at Point d, Clause 1 of this Article, the provincial-level Justice Department shall issue a decision to revoke the operation registration certificate of the business.
– Provincial-level Justice Departments of the localities where property auction businesses have made their operation registration shall publish on their portals information on the revocation of operation registration certificates of such businesses; and notify the revocation in writing to tax offices, statistics offices and planning and investment offices of the localities where the businesses have made their operation registration and report it to the Ministry of Justice.
Please see more:
- Instructions for exclusive registration of company logos in Vietnam
- Service of changing the legal representative of Vietnamese enterprises
Services of Lawyer X
Prestigious professional services: Firstly, the team of consultants and consultants for many years in the field of civil status, and customer support.
On-time: Certainly, with the motto “Get your lawyer right at your fingertips”, we ensure the service always performs on time. The rights and interests of customers always come first.
Cost: Besides, Lawyer X’s service costs are highly competitive; depending on the nature of the particular case. So, we want our guests to have the best possible service experience. Therefore, costs which guaranteed to be the most suitable and economical for customers.
Confidentiality of client information: Finally, all personal information of clients Lawyer X will be 100% confidential.
If you need any further information, please contact LSX Law firm: at +84846175333 or Email: [email protected]
Frequently asked questions
Yes! Property auction service centers shall be established under decisions of provincial- level People’s Committees.
Property auction service centers are public non-business units of provincial-level Justice Departments, have their offices, own seals and bank accounts. Directors of property auction service centers are auctioneers.
Property auction businesses shall be established and organized and operate as private businesses or partnerships in accordance with 2016 Vietnam Law on Property Auction and other relevant laws.
Conclusion: So the above is Regulations on property auction organizations in Vietnam. Hopefully with this article can help you in life, please always follow and read our good articles on the website: lsxlawfirm.com
