From June 13, 2022, participants in the auction of land use rights in Hanoi must pay 20% of the value of the auctioned property in advance?
What are the conditions of the land plot being auctioned in Hanoi today?
Pursuant to Article 7 of Decision 27/2020/QD-UBND in 2020 of the People's Committee of Hanoi, the conditions for the land parcel to be put up for auction in Hanoi today are as follows:
“Article 7. Conditions for the land plot to be put up for auction
The land plot to be put up for auction of land use rights must satisfy the conditions specified in Clause 1, Article 119 of the Land Law, and Clause 1, Article 8 of the Law on Property Auction, specifically:
1. There has been an annual land use plan of the district, district or town approved by the City People's Committee.
2. Having completed the site clearance work, the land has assets attached to the land which are owned by the State.
3. Having been approved by a competent state agency, the land use right auction plan, the starting price for the land use right auction.”
Thus, up to the present time, the land plot put up for auction in Hanoi only needs to ensure the conditions as specified above.
From June 13, 2022, participants in the auction of land use rights in Hanoi must pay 20% of the value of the auctioned property in advance?
Adding more conditions to put the land parcel up for auction in Hanoi?
Pursuant to Clause 3, Article 1 of Decision 24/2022/QD-UBND of the Hanoi People's Committee, additional conditions have been added to put the land plot at auction in Hanoi as follows:
“Article 1. Amending and supplementing a number of articles of the Regulation issued together with the Decision No. 27/2020/QD-UBND dated November 18, 2020 of the City People's Committee, regulating the auction of land use rights to land allocation or land lease in Hanoi city, as follows:
…
3. To add Clause 4, Article 7 as follows:
“4. The investment policy has been approved (in the case of an auction of land use rights for the implementation of an investment project according to the planning subject to the approval of the investment policy).
Accordingly, with the addition of additional conditions, in the near future, the conditions for putting the land plot at auction in Hanoi will be:
- There is an annual land use plan of the district, town or town approved by the City People's Committee.
- Having completed the site clearance work, the land has assets attached to the land which are owned by the State.
- Having been approved by a competent state agency, the land use right auction plan, the starting price for the land use right auction.
- Having been approved for the investment policy (in the case of auction of land use rights to implement the investment project according to the planning subject to the approval of the investment policy).
In the near future, participants in the auction of land use rights in Hanoi must pay in advance 20% of the starting price of the land plot being auctioned?
Pursuant to Article 8 of Decision 27/2020/QD-UBND in 2020 of the Hanoi People's Committee, which stipulates the conditions and subjects to participate in the auction of land use rights in Hanoi as follows:
“Article 8. Conditions on subjects participating in the auction of land use rights
1. For organizations that must be allocated land by the State according to the provisions of Clauses 2, 3 and 4, Article 55 of the Land Law; lease land according to the provisions of Points dd and e, Clause 1, Article 56 of the Land Law, ensuring the conditions for implementing investment projects as prescribed in Clause 3, Article 58 of the Land Law, Article 21 of the 2014 Housing Law and Article 14 of Decree No. 43/2014/ND-CP dated May 15, 2014 of the Government detailing the implementation of the Land Law, specifically:
a) Having financial capacity to ensure the use of land according to the progress of the investment project, including:
- Having capital under his/her ownership to implement the project not less than 20% of the total investment, for projects with a land use scale of less than 20 ha; not less than 15% of the total investment for projects with a land use scale of 20 hectares or more;
- Capable of mobilizing capital for project implementation from credit institutions, foreign bank branches and other organizations and individuals;
b) Deposit in accordance with the provisions of the law on investment, except for the case specified at Point a, Clause 1, Article 27 of Decree No. 118/2015/ND-CP dated November 12, 2015 of the Government detailing and guiding guiding the implementation of a number of articles of the Investment Law;
c) Do not violate the provisions of the law on land, in case they are using land allocated or leased by the State to implement other investment projects.
2. Households and individuals must be subject to land allocation by the State according to the provisions of Clause 1, Article 55 of the Land Law; lease land as prescribed at Points a, c and d, Clause 1, Article 56 of the Land Law, except for the case specified at Point d, Clause 2, Article 118 of the Land Law.
3. Must register to participate in the auction according to the provisions of Article 38 of the Law on Property Auction.
4. Cases of not participating in the auction of land use rights.
a) Cases that do not satisfy the conditions specified in Clauses 1 and 2 of this Article; in case of violation of the contents specified in Clause 3 of this Article.
b) The cases specified in Clause 4, Article 38 of the Law on Property Auction.”
Accordingly, at the present time, the subjects participating in the auction of land use rights in Hanoi need to ensure the conditions as prescribed above.
However, according to Clause 4, Article 1 of Decision 24/2022/QD-UBND of the Hanoi People's Committee, additional conditions for participating in the auction of land use rights in Hanoi are added as follows:
“Article 1. Amending and supplementing a number of articles of the Regulation issued together with the Decision No. 27/2020/QD-UBND dated November 18, 2020 of the City People's Committee, regulating the auction of land use rights to land allocation or land lease in Hanoi city, as follows:
…
4. To add Clause 3b, Article 8 on conditions for participating in the auction, as follows:
“3b. Auction participants must pay a deposit equal to 20% of the starting price of the auctioned asset.”
Thus, in the near future, the subjects participating in the auction of land use rights in Hanoi not only need to meet the requirements and conditions under Article 8 of Decision 27/2020/QD-UBND 2020. The Hanoi People's Committee must also pay a deposit equal to 20% of the starting price of the land plot to be auctioned.
Decision 24/2022/QD-UBND of the People's Committee of Hanoi will take effect from June 13, 2022.
LawNet
