What are the cases in which the property seller may cancel the property auction service contract in Vietnam?

What are the cases in which the property seller may cancel the property auction service contract in Vietnam? (Internet image)

Regarding this issue, LawNet responded as follows:

1. What is property auction service contract?

According to Clause 1, Article 33 of the Law on Property Auction 2016, a property seller shall sign a property auction service contract with a property auction organization to conduct property auction.

Such a contract shall be made in writing and must comply with the civil law and the Law on Property Auction 2016.

2. What are the cases in which the property seller may cancel the property auction service contract in Vietnam?

The property seller may cancel the property auction service contract when having one of the following grounds:

(i) 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;

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

(iii) 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;

(iii) 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;

(iv) 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.

(Clause 6, Article 33 of the Law on Property Auction 2016)

3. Rights and obligations of property seller in Vietnam

3.1. Rights of property seller in Vietnam

Pursuant to Clause 1, Article 47 of the Law on Property Auction 2016, the property seller has the following rights:

- To supervise the process of holding an auction;

- To participate in the auction;

- To request the property auction organization to stop the auction when having grounds to believe that this organization commits a violation prescribed at Point b or c, Clause 2, Article 9 of the Law on Property Auction 2016;

- To request the auctioneer to stop the auction when having grounds to believe that the auctioneer commits a violation prescribed at Point c. Clause 1, Article 9 of the Law on Property Auction 2016 or that a bidder commits a violation prescribed at Point b, c or d, Clause 5, Article 9 of the Law on Property Auction 2016;

- To unilaterally terminate or cancel the property auction service contract or contract on purchase and sale of the auctioned property or request the court to declare such contract to be null and void in accordance with the Law on Property Auction 2016 and civil law;

- Other rights as provided by law.

3.2. Obligations of property seller in Vietnam

The property seller has the following obligations:

- To take responsibility for the auctioned property;

- To sign a contract on purchase and sale of the auctioned property or submit property auction results to a competent agency for approval;

- To hand the auctioned property and documents of title related to such property to the property buyer as agreed upon in the contract on purchase and sale of the auctioned property or as prescribed by law;

- To report to a competent agency on the selection of a property auction organization, developments of the auction and property auction results, in case of auction of state property;

- Other obligations as prescribed by law.

(Clause 2, Article 47 of the Law on Property Auction 2016)

Nguyen Thi Hoai Thuong

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