Proposal to raise land auction deposit to 50% of starting level

VTV.vn - The Ministry of Justice wants to increase the deposit level of individuals participating in land auctions from a maximum of 20% to 50% to limit price inflation and profiteering.

Illustration photo.

The Ministry of Justice recently held a meeting to listen to a report on the draft Resolution of the Government regulating the handling of difficulties and obstacles in property auction activities.

According to the report, recent practices have shown that there has been a situation of taking advantage of property auction activities, paying unusually high prices and then not paying the winning bid, or so-called "abandoning deposits", colluding, lowering prices or colluding to manipulate prices in land use rights auctions in some localities for personal gain.

This affects the healthy development of the real estate market, poses many risks to security and social order, and impacts socio -economic development and the investment and business environment.

The above situation comes from a number of main reasons such as: the starting price is low compared to the market price, so the deposit to participate in the auction is low (maximum 20%) which has led to the situation that many people and investors who do not need to use the land also participate in the auction for the purpose of making a profit.

Therefore, the drafting of the Government Resolution regulating the handling of difficulties and obstacles in property auction activities is aimed at promptly overcoming difficulties and obstacles, clearing resources in land use rights auction activities, effectively serving state management and socio-economic development.

The Draft Resolution stipulates that in the case of allocating residential land to individuals, or in the case of allocating or leasing land to carry out investment projects, the deposit to participate in the auction of land use rights must be at least 10% and at most 50% of the starting price.

The draft also clearly states that the winner of the land use rights auction in the case of land allocation to individuals who violate the obligation to pay the auction winning price, leading to the decision to recognize the auction results being canceled, depending on the nature and level of violation... will be banned from participating in the land use rights auction in the case of land allocation for a period of 6 months to 5 years.

Source: https://vtv.vn/de-xuat-nang-tien-dat-coc-dau-gia-dat-len-50-muc-khoi-diem-10025092514151392.htm