Regulations on venue of property auction in Vietnam from January 1, 2025

Regulations on venue of property auction in Vietnam from January 1, 2025 (Image from the Internet)

On June 27, 2024, the National Assembly of Vietnam passed the Law amending Law on Property Auction 2024.

1. Regulations on venue of property auction in Vietnam from January 1, 2025

According to Article 37 of the Law on Property Auction 2016 (amended Clause 22 Article 1 of the Law amending Law on Property Auction 2024), the venue of property auction shall be as follows:

- The owner of the auctioned asset and the asset auction organization will mutually agree on the location for conducting the auction session as follows:

+ Locations within the province or city under central authority where the headquarters of the asset auction organization, headquarters of the asset owner, or where the asset (if it is a movable property) is located.

+ Locations within the province or city under central authority where the asset is located if it is immovable property. In cases where the asset is immovable property located in different provinces or cities under central authority, the asset owner and the asset auction organization will select one of these provinces or cities where the immovable property, the asset owner's headquarters, or the auction organization's headquarters is located.

- In cases where the location announced for the auction session does not meet the conditions after the deadline for submitting the auction participation application and deposit according to the Auction Regulations, the asset auction organization shall proceed as follows:

+ Agree on a new location with the asset owner in writing within the same district-level jurisdiction as previously announced.

+ Notify in writing the new location for the auction session to eligible auction participants. This notification must be made at least 1 working day before the auction session date specified in the issued Auction Regulations.

2. Cases where persons may not register for participation in an auction in Vietnam

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

- Individuals without legal capacity, those who have lost or have limited legal capacity, individuals with cognitive and behavioral difficulties, or individuals who are unable to control their behavior at the time of auction registration.

- Employees of the asset auction organization conducting the auction; parents, spouses, children, and siblings of the auctioneer managing the auction session; individuals directly evaluating and valuing the asset; parents, spouses, children, and siblings of the individuals directly evaluating and valuing the asset.

- Individuals authorized by the asset owner to handle the asset, those with the right to decide on selling the asset, sign asset auction service contracts, or decide on selling others' assets as prescribed by law.

- Parents, spouses, children, and siblings of the individuals mentioned in point c, Clause 4, Article 38 of the Law on Property Auction 2016.

- Individuals who are not legally permitted to purchase auctioned assets according to the applicable asset-specific regulations.

More details can be found in the Law amending Law on Property Auction 2024, which comes into force in Vietnam from January 1, 2025.

Vo Tan Dai

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