According to the revised Law on Property Auction recently passed by the National Assembly, if the winner of the auction for land use rights to implement an investment project violates the payment obligation, the result must be canceled and he/she will be banned from participating in the auction from 6 months to 5 years depending on the severity of the violation.
With 95.27% of delegates voting in favor, the National Assembly passed the Law amending and supplementing a number of articles of the Law on Property Auction in the afternoon session of June 27 of the 7th Session.
One of the notable contents of the amended Asset Auction Law is the regulations on handling violations for auction participants, auction winners, and related individuals and organizations.
People who win land auctions and then abandon their deposit will be banned from 6 months to 5 years according to the new regulations.
According to the new law, auction participants, auction winners, individuals and organizations involved in violating the provisions of this law, depending on the nature and severity, will be subject to disciplinary action, administrative sanctions or criminal prosecution. If damage is caused, compensation must be paid according to regulations.
The winner of the auction of land use rights in cases of land allocation or land lease to implement investment projects or mineral exploitation rights violates the obligation to pay the auction winnings, leading to a decision to recognize the auction results. If the price is canceled, depending on the nature and severity of the violation, you will be banned from participating in the auction for that type of asset for a period of 6 months to 5 years.
In addition, the points and clauses of Article 39 of the amended Law on Asset Auctions regarding deposits and handling of deposits have many notable points.
The law requires auction participants to pay a deposit. The deposit is deposited into a separate payment account of the property auction organization opened at a commercial bank or a branch of a foreign bank in Vietnam.
Auction participants, property owners and property auction organizations may agree to replace the deposit with a bank guarantee.
The deposit is agreed upon by the auction organization and the person whose property is being auctioned, but is at least 5% and at most 20% of the starting price.
In case of auction of land use rights for land allocation and lease to implement investment projects, the minimum deposit is 10% and the maximum is 20% of the starting price.
Ninh Phan