Regulations on oral property auction in Vietnam

What is property auction?

Pursuant to the Law on Property Auction 2016, property auction means a method of selling property involving two or more bidders according to the order and procedures prescribed in the Law on Property Auction 2016, except the case specified in Article 49 of this Law.

Regulations on oral property auction in Vietnam (Internet image)

Auction forms and methods in Vietnam

Pursuant to Article 40 of the Law on Property Auction 2016, a property auction organization shall reach agreement with a property seller on selecting one of the following auction forms:

- Oral auction;

- Casting bid tickets directly at an auction;

- Delivering sealed bid tickets;

- Online auction.

Auction methods include:

- Ascending-price auction;

- Descending-price auction.

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

Regulations on oral property auction in Vietnam

The form of oral property auction in Vietnam is specifically regulated in Article 41 of the Law on Property Auction 2016, specifically as follows:

(1) An auctioneer shall conduct an oral auction in the following order:

- Introducing himself/herself and his/her assistant; publicizing a list of bidders and taking the roll call for identifying bidders;

- Reading out the rules of the auction;

- Introducing every auctioned property item;

- Repeating the reserve price, in case such price is publicized;

- Notifying bid increment/decrement and the maximum interval between times of bid offer and price setting;

- Delivering bid tickets to bidders;

- Guiding methods of offering bids and accepting set prices, and answering questions raised by bidders;

- Conducting the offer of bids and acceptance of set prices under (2) and (3).

(2) The offer of bids in case of ascending-price auction is prescribed as follows:

- The auctioneer requests bidders to offer bids;

- Bidders offer bids. A bid offered must at least equal the reserve price, in case such price is publicized. A bidder shall offer a bid higher than that offered by the preceding bidder;

- The auctioneer announces every bid offered by a bidder and asks other bidders to continue offering bids;

- The auctioneer declares the bidder who has offered the highest bid to be the winning bidder after having repeated three times the highest bid which is higher than the reserve price while no one else offers a higher bid.

(3) The acceptance of set prices in case of descending-price auction is prescribed as follows:

- The auctioneer sets a price for bidders to accept. A person who accepts the reserve price is the winning bidder;

- The auctioneer announces a bid decrement and continues conducting the auction if no one accepts the reserve price or decreased price. A person who accepts the decreased price is the winning bidder;

- If two or more persons accept the reserve price or decreased price, the auctioneer shall hold a lot draw for selecting the winning bidder.

Mai Thanh Loi

>> CLICK HERE TO READ THIS ARTICLE IN VIETNAMESE