What are auction forms in Vietnam? When shall an auction in Vietnam be considered failing?

What are auction forms in Vietnam?

Pursant to Article 40 of the Law on Property Auction in 2016 stipulating auction forms and methods:

Auction forms and methods

1. A property auction organization shall reach agreement with a property seller on selecting one of the following auction forms:

a/ Oral auction;

b/ Casting bid tickets directly at an auction;

c/ Delivering sealed bid tickets;

d/ Online auction.

2. Auction methods include:

a/ Ascending-price auction;

b/ Descending-price auction.

3. Auction forms and methods shall be stated in the rules of an auction and notified to bidders.

4. The Government shall detail Point d, Clause 1 of this Article.

As regulated above, there are 04 auction forms in Vietnam, including:

- Oral auction;

- Casting bid tickets directly at an auction;

- Delivering sealed bid tickets;

- Online auction.

What are auction forms in Vietnam? When shall an auction in Vietnam be considered failing? - image from internet

When shall an auction in Vietnam be considered failing?

Pursant to Article 52 of the Law on Property Auction in 2016 stipulating failing auction:

Failing auction

1. An auction shall be considered failing in the following cases:

a/ No one registers for participation in the auction though the time limit for registration has expired;

b/ At the auction, no one offers a bid or no one accepts the set price;

c/ The offered highest bid is lower than the reserve price in case such price is not publicized and an ascending-price auction is conducted;

d/ The winning bidder refuses to sign the auction minutes as prescribed in Clause 3, Article 44 of this Law;

dd/ The person who has offered a bid withdraws such bid, or the person who has accepted the set price withdraws such price as prescribed in Article 50 of this Law while no one else offers another bid;

e/ The case of rejection of the bid winning results prescribed in Article 51 of this Law;

g/ Only one person registers for participation in the auction though the time limit for registration has expired, in case of property auction prescribed in Article 59 of this Law.

2. Within 3 working days after the auction fails, the property auction organization shall return the property and relevant documents of title to the property seller, unless otherwise agreed upon by the parties or otherwise prescribed by law.

3. Property not sold at the auction shall be realized in accordance with law or put for another auction as agreed upon between the property seller and property auction organization.

As regulated above, an auction shall be considered failing in the following cases:

- No one registers for participation in the auction though the time limit for registration has expired;

- At the auction, no one offers a bid or no one accepts the set price;

- The offered highest bid is lower than the reserve price in case such price is not publicized and an ascending-price auction is conducted;

- The winning bidder refuses to sign the auction minutes;

- The person who has offered a bid withdraws such bid, or the person who has accepted the set price withdraws such price while no one else offers another bid;

- The case of rejection of the bid winning results;

- Only one person registers for participation in the auction though the time limit for registration has expired, in case of property auction prescribed in Article 59 of the Law on Property Auction in 2016.

Who are not permissible to register for participation in an auction in Vietnam?

Pursant to Clause 4 Article 38 of the Law on Property Auction in 2016, the following persons may not register for participation in an auction:

- A person having no civil act capacity, person having lost his/her civil act capacity or having his/her civil act capacity restricted, person having difficulties in cognition or behavior control, or person having no cognition or behavior control ability at the time of registration for participation in auction;

- A person working in the property auction organization that conducts the auction; parent, spouse, child or blood sibling of the auctioneer; person directly engaged in property appraisal or valuation; or parent, spouse, child or blood sibling of the person directly engaged in property appraisal or valuation;

- A person authorized by the property owner to realize property, person entitled to decide on the sale of property, person signing the property auction service contract, or person entitled to decide on the sale of others’ property in accordance with law;

- A parent, spouse, child or blood sibling of the person defined at Point c Clause 4 Article 38 of the Law on Property Auction in 2016;

- A person not entitled to buy the auctioned property under regulations applicable to such kind of property.

Best regards!