What are cases of cancellation of property auction results in Vietnam? What are legal consequences of cancellation of property auction results in Vietnam?

What are cases of cancellation of property auction results in Vietnam?

Pursuant to Article 72 of the Law on Property Auction in 2016 stipulating cases of cancellation of property auction results in Vietnam:

Case (1): The cancellation of property auction results is agreed upon between the property seller, property auction organization and winning bidder or the cancellation of the conclusion of the contract on purchase and sale of the auctioned property or cancellation of this contract is agreed upon between the property seller and winning bidder, unless the auction causes damage or affects the interests of the State or lawful rights and interests of individuals and organizations;

Case (2): The property auction service contract or contract on purchase and sale of the auctioned property is declared null and void by the court under the civil law in case the winning bidder commits the act of 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;

Case (3): The property auction service contract is cancelled when having one of the following grounds:

- The auction is held by an organization without the property auction function or conducted by an individual other than an auctioneer, unless it is held by a property auction council;

- The property auction organization intentionally allows an unqualified person to participate in an auction who later becomes the winning bidder;

- The property auction organization commits one of the following acts: failing to publicly display information on property auction; failing to disclose information on property auction; improperly implementing regulations on the sale of auction dossiers or organizations registering for participation in auction; or impeding or restricting bidders from registering for participation in auction;

- The property auction organization colludes or is in cahoots with bidders during the auction, thus falsifying information on the auctioned property, auction dossier or property auction results;

- The property auction organization holds an auction at variance with regulations on auction forms and methods according to the rules of the auction, thus falsifying the property auction results.

Case (4): The property seller, bidder, winning bidder, property auction organization or auctioneer commits an act of collusion or price suppression during the auction, thus falsifying information on the auctioned property or auction dossier or property auction results;

Case (5): As decided by the person with administrative sanctioning competence in case of auction of state property when there is one of the following grounds:

- The auction is held by an organization without the property auction function or conducted by an individual other than an auctioneer, unless it is held by a property auction council;

- The property auction organization intentionally allows an unqualified person to participate in an auction who later becomes the winning bidder;

- The property auction organization commits one of the following acts:

+ Failing to publicly display information on property auction;

+ Failing to disclose information on property auction;

+ Improperly implementing regulations on the sale of auction dossiers or organizations registering for participation in auction;

+ Impeding or restricting bidders from registering for participation in auction;

- The property auction organization colludes or is in cahoots with bidders during the auction, thus falsifying information on the auctioned property, auction dossier or property auction results;

- The property auction organization holds an auction at variance with regulations on auction forms and methods according to the rules of the auction, thus falsifying the property auction results.

What are cases of cancellation of property auction results in Vietnam? What are legal consequences of cancellation of property auction results in Vietnam? image from internet

What are legal consequences of cancellation of property auction results in Vietnam?

Pursuant to Article 73 of the Law on Property Auction in 2016 stipulating following regulations:

Legal consequences of cancellation of property auction results

In case of cancellation of property auction results under Clause 2, 3,4 or 5, Article 72 of this Law, the parties shall restore the original state of, and return to one another, the received property or pay cash if they are unable to return the property in kind. The party at fault that causes damage shall pay compensation in accordance with law.

As regulations above, legal consequences of cancellation of property auction results in Vietnam are:

- The parties shall restore the original state of, and return to one another, the received property;

- If they are unable to return the property in kind, it is possible to pay cash;

- The party at fault that causes damage shall pay compensation.

Note: the above legal consequences shall not be applied in the following case: The cancellation of property auction results is agreed upon between the property seller, property auction organization and winning bidder or the cancellation of the conclusion of the contract on purchase and sale of the auctioned property or cancellation of this contract is agreed upon between the property seller and winning bidder, unless the auction causes damage or affects the interests of the State or lawful rights and interests of individuals and organizations.

What are regulations on registration for participation in auction in Vietnam?

Pursuant to Article 38 of the Law on Property Auction in 2016 stipulating registration for participation in auction in Vietnam:

Registration for participation in auction

1. An individual or organization shall register for participation in an auction by submitting a valid auction dossier and making an advance payment to a property auction organization in accordance with this Law and other relevant laws. A bidder must satisfy the law-prescribed conditions, if any, for participation in an auction, and may authorize in writing another person to participate in the auction on the bidder’s behalf.

2. A property auction organization shall sell auction dossiers and receive them within working hours continuously from the date of public display of information on property auction to the date which is 2 days earlier than the date an auction opens.

3. In addition to the conditions for registration for participation in an auction prescribed in this Law and other relevant laws, the property seller or property auction organization may not set out any other requirements or conditions on bidders.

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As regulations above, before participating in property an auction at auction service centers, people joining the auction must submit a valid auction dossier and making an advance payment to a property auction organization. A bidder may authorize in writing another person to participate in the auction on the bidder’s behalf.

Best regards!