Proposing sanctions to prevent deposit abandonment in property auctions

Additional crime of violating regulations on property auction activities

Reporting on the reception, revision and explanation of the Draft Law amending and supplementing a number of articles of the Law on Property Auction, Chairman of the National Assembly's Economic Committee Vu Hong Thanh said that after being received and revised, the Draft Law amended and supplemented 43 articles and abolished 3 articles of the current Law; added 3 new articles; increased 18 clauses compared to the Draft Law submitted to the National Assembly at the 6th Session, but mainly amended the legislative technique, without creating many new policies.

7th session, 15th National Assembly . Photo: Quochoi.vn

Regarding prohibited acts, the draft Law has removed the phrase “for the purpose of profiteering” for the act of “disclosing information about auction registrants” at Point d1, Clause 1 and Point d, Clause 2, Article 9 to ensure consistency with practice and feasibility of this provision. At the same time, to ensure objectivity, transparency, and prevent collusion in a property auction, the draft Law has removed the phrase “to pay the price” stipulated at Point d1, Clause 5, Article 9 to expand the prohibited acts.

Regarding the Auctioneer Practice Certificate, the Draft Law has added the crime of violating regulations on property auction activities in Clause 4, Article 15 and Point b, Clause 5, Article 17 as one of the cases in which the Auctioneer Practice Certificate cannot be granted or re-granted in order to ensure the strictness in granting the Auctioneer Practice Certificate, in accordance with the provisions of Article 218 of the Penal Code.

Chairman of the National Assembly's Economic Committee Vu Hong Thanh reported on the reception, revision and explanation of the Draft Law amending and supplementing a number of articles of the Law on Property Auction. Photo: Quochoi.vn

Regarding the rights and obligations of property auction organizations, the Draft Law has been revised in the direction that property auction organizations are provided with property auction services without distinguishing between public and private properties. At the same time, the Draft Law has added the right of property auction organizations to associate with other property auction organizations to organize property auctions as prescribed in Clause 2, Article 4.

Limit the situation of auction winners abandoning their deposits

Regarding registration for participation in the auction, Chairman of the Economic Committee Vu Hong Thanh said that the draft Law has amended and supplemented Clause 2, Article 38 in the direction of reviewing the conditions for participation in the auction for ordinary assets, without requiring professional or technical conditions, and the auction organization only needs to notify those who are not qualified to participate in the auction at least 1 working day before the auction opening date.

Regarding the deposit and handling of the deposit, taking into account the opinions of the National Assembly deputies, the Draft Law stipulates more clearly the deposit for some special assets and often assets of great value, which can affect the stock market, real estate market, the minimum deposit is 10% and the maximum is 20% of the starting price to contribute to limiting the situation of auction winners abandoning the deposit, ensuring consistency with the provisions of current laws on minerals, land, radio frequencies, etc.

National Assembly deputies attending the 7th Session of the 15th National Assembly. Photo: Quochoi.vn

Regarding online auctions, the Draft Law has added Article 43a and Article 43b on online auctions, accordingly, Article 43a stipulates the basic contents of online auctions. It stipulates that asset auction organizations, asset auction councils, organizations in which the State owns 100% of the charter capital established by the State Bank of Vietnam to handle bad debts of credit institutions organize online auctions through the use of the National Asset Auction Portal or use their own online auction information page or rent or use the online auction information page of other asset auction organizations. Article 43b stipulates the framework for online auction procedures and assigns the Government to specify details to ensure the feasibility and effectiveness of the regulations.

Regarding sanctions for violations against auction winners who do not pay the auction winning money, taking into account the opinions of National Assembly deputies, the Draft Law has added cases where auction winners of land use rights in cases of land allocation or lease to implement investment projects or mineral exploitation rights violate the obligation to pay the auction winning money, leading to the decision to recognize the auction results being canceled... Depending on the nature and severity of the violation, they are prohibited from participating in auctions for that type of property for a period of 6 months to 5 years to prevent negative acts, market disruption, and prevent the abandonment of deposits or inflating the value of assets for profit in property auction activities.

Source: https://kinhtedothi.vn/de-xuat-che-tai-ngan-chan-tinh-trang-bo-coc-trong-dau-gia-tai-san.html