What is a property auction in Vietnam? If the auction is unsuccessful, will the judgment creditor receive assets?
What is a property auction in Vietnam?
Pursuant to the provisions of Clause 2, Article 5 of the Law on Property Auction 2016, Property auction means a method of selling property involving two or more bidders according to the order and procedures prescribed in Law on Property Auction 2016, except the case specified in Article 49 of Law on Property Auction 2016
What is a property auction in Vietnam? If the auction is unsuccessful, will the judgment creditor receive assets? (Image from the Internet)
Vietnam: What actions are strictly prohibited for auction participants?
Pursuant to the provisions of Clause 5, Article 9 of the Law on Property Auction 2016, 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.
How to handle assets for which there is no bidder or unsuccessfully auctioned assets in Vietnam?
Pursuant to the provisions of Article 104 of the Law on Enforcement of Civil Judgments 2008, amended by Clause 36, Article 1 of the Law amending and supplementing a number of articles of the Law on Enforcement of Civil Judgments 2014 stipulates as follows:
Handling of assets for which there is no bidder or unsuccessfully auctioned assets
1. Within 5 working days after receiving the auctioneering organization’s notification that there is no bidder for assets put up for first-time auction or auction is unsuccessful, the enforcer shall notify and request involved parties to reach agreement on reduction of asset prices.
Within 10 days after receiving the notification, if involved parties do not agree or cannot reach agreement on reduction of asset prices, the enforcer shall decide on reduction of asset prices for further auction.
2. From the second-time price reduction on, if there is no bidder for the auction or the auction is unsuccessful, the judgment creditor may receive assets for clearing against sums of money receivable under the judgment enforcement.
In case the judgment creditor agrees to receive assets for clearing against sums of money receivable under the judgment enforcement, within 10 days after receiving the notification that there is no bidder for the auction or the auction is unsuccessful, the enforcer shall notify such to the judgment debtor.
Within 30 days after receiving the notification on the judgment creditor’s consent to receiving assets for judgment enforcement, if the judgment debtor fails to fully pay sums of money receivable under the judgment enforcement and judgment enforcement expenses to receive back assets put up for auction, the enforcer shall hand over assets to the judgment creditor. For assets being real estate or movables subject to compulsory ownership and use right registration, enforcers shall issue decisions to hand over assets to judgment creditors for conducting registration procedures and granting asset ownership and use right certificates. Judgment debtors and current managers or users of assets that fail to voluntarily hand over assets to judgment creditors may be subject to coercive judgment enforcement.
3. In case judgment creditors disagree to receive assets for judgment enforcement, enforcers shall issue decisions on reduction of asset prices for further auction. If the reduced asset value is equal to or lower than coercive enforcement expenses, but judgment creditors still refuse to receive for clearing against sums of money receivable under the judgment enforcement, these assets shall be returned to judgment debtors for management and use. Judgment debtors may not put these assets in civil transactions until they complete their judgment execution obligation.
4. For assets put up for auction for payment of state budget remittances, within 10 days after receiving the notification that there is no bidders for the auction or the auction is unsuccessful, enforcers shall decide on reduction of asset prices for further auction.
5. Each price reduction provided in Clauses 1, 3 and 4 of this Article does not exceed 10% of the reserve price of the preceding auction."
Thus, based on the above regulations, if there is no bidder for assets put up for first-time auction or auction is unsuccessful, the enforcer shall notify and request involved parties to reach agreement on reduction of asset prices.
From the second-time price reduction on, if there is no bidder for the auction or the auction is unsuccessful, the judgment creditor may receive assets for clearing against sums of money receivable under the judgment enforcement.
Therefore, based on the above regulations, in case the auction is unsuccessful, the judgment creditor may receive assets for clearing against sums of money receivable under the judgment enforcement.
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