Cases of failing auction in Vietnam under the Law on Property Auction 2016

Cases of failing auction in Vietnam under the Law on Property Auction 2016 (Internet image) 

Regarding this issue, LawNet would like to answer as follows:

1. Cases of failing auction in Vietnam under the Law on Property Auction 2016

Cases of unsuccessful auctions according to Article 52 of the Law on Property Auction 2016 include:

- 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 as prescribed in Clause 3, Article 44 of the Law on Property Auction 2016;

+ 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 the Law on Property Auction 2016 while no one else offers another bid;

+ The case of rejection of the bid winning results prescribed in Article 51 of the Law on Property Auction 2016;

+ 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 2016.

- 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.

- 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.

2. Regulations on registration for participation in auction in Vietnam

Regulations on registration for participation in auction in Vietnam according to Article 38 of the Law on Property Auction 2016 are as follows:

- 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 the Law on Property Auction 2016 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.

- 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.

- In addition to the conditions for registration for participation in an auction prescribed in the Law on Property Auction 2016 and other relevant laws, the property seller or property auction organization may not set out any other requirements or conditions on bidders.

- 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 of Clause 4 of Article 38 of the Law on Property Auction 2016;

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

3. Regulations on checking of auctioned property in Vietnam

Regulations on checking of auctioned property according to Article 36 of the Law on Property Auction 2016 are as follows:

- From the date of public display of information on property auction to the date an auction opens, a property auction organization shall permit bidders to check property or property samples for at least 2 consecutive days. The name of the property seller and information on property shall be shown on property or property samples.

- From the date of public display of information on property auction to the date an auction opens, for the auctioned property being property rights or property subject to ownership or use right registration, the property auction organization shall permit bidders to check documents of title and relevant documents for at least 2 consecutive days.

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