What is a property auction? What are the regulations on the reserve price and appraisal of property to be auctioned in Vietnam? – Hong Nhung (Binh Phuoc, Vietnam)
Article table of contents
What is property auction? Reserve price and appraisal of property to be auctioned in Vietnam (Internet image)
1. What is property auction?
Property auction means a method of selling property involving two or more bidders according to the order and procedures prescribed in this Law, except the case specified in Article 49 of the Law on Property Auction 2016, except for the auction in case only one person registers for participation in auction, one person participates in auction, one person offers bids or one person accepts the set price
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Auction in case only one person registers for participation in auction, one person participates in auction, one person offers bids or one person accepts the set price in Vietnam is stipulated as follows: - An auction in case only one person registers for participation in auction, one bidder participates in auction, one person offers bids or one person accepts the set price shall be conducted only after the first auction fails, specifically as follows: + In case of an ascending-price auction, when the time limit for registration for participation in auction has expired but only one person registers for participation in the auction, or more than one person registers for participation in the auction but only one person participates in the auction, or more than one person participates in the auction but only one person offers bids, or more than one person offers bids but only one person offers the highest bid which is at least equal to the reserve price, the property shall be sold to this person if so consented in writing by the property seller; + In case of a descending-price auction, if only one person registers for participation in the auction, or more than one person registers for participation in the auction but only one person participates in the auction and accepts the reserve price or decreased price, the property shall be sold to this person if so consented in writing by the property seller. - The property auction prescribed in Clause 1 of this Article shall be conducted only after the order and procedures for auction are completely carried out in accordance with the Law on Property Auction 2016 and there is no complaint relating to such order and procedures until the date of auction. - An auction minutes must, in addition to the contents prescribed in Clauses 2 and 4, Article 44 of the Law on Property Auction 2016, state that only one person has participated in the auction or only one person offered bids or accepted the valid set price, and contain the consent of the property seller. |
(Clause 2, Article 5, Article 49 of the Law on Property Auction 2016)
2. Reserve price and appraisal of property to be auctioned in Vietnam
Reserve price means the minimum starting price of a to be-auctioned property in case of ascending-price auction or the maximum starting price of a to be-auctioned property in case of descending-price auction.
- The reserve price of an auctioned property item in Vietnam shall be determined before:
+ The signing of a property auction service contract;
+ A property auction council is formed, unless otherwise provided by law;
+ The wholly state-owned organization established by the Government to settle non- performing loans of credit institutions conducts by itself the auction.
- The reserve price of an auctioned property item shall be determined as follows:
+ For the types of auctioned property specified in Clause 1, Article 4 of the Law on Property Auction 2016, their reserve prices shall be determined under the relevant regulations applicable to such types of property;
+ For the types of auctioned property specified in Clause 2, Article 4 of the Law on Property Auction 2016, their reserve prices shall be determined by their sellers or by property auction organizations or other individuals or organizations as authorized by their sellers.
- An auctioned property item shall be appraised in accordance with law or at the request of bidders and with the consent of its seller.
The appraisal order and procedures must comply with the relevant regulations applicable to relevant types of property. In case of appraisal upon request, the requester shall pay appraisal expenses.
(Article 8 of the Law on Property Auction 2016)
Diem My
- Key word:
- property auction in Vietnam
