The detailed regulations on a number of articles of the Law on Property Auction

On 27/12/2024, the Government issued Decree No. 172/2024/ND-CP detailing a number of articles of the Law on Property Auction No. 01/2016/QH14, amended and supplemented by a number of articles under the Law No. 37/2024/QH15. The Decree clearly stipulates the order and procedures for online auctions.

The Article 11, Decree No. 172/2024/ND-CP stipulates the order of auctions organization in the form of online auctions. Specifically:

- The auction participants purchase the invitation to participate in the auction and register for an access account on the National Property Auction Portal or the online auction website.

The auction participants use the access account to receive instructions on how to purchase documents, submit online auction participation documents, pay deposits, how to participate in the auction, bidding and other necessary contents when participating in the online auction on the National Asset Auction Portal or the online auction page.

- The auction participants who submit valid auction participation documents and deposits will be allowed to use the access account to participate in the auction according to the Auction Regulations.

Those who are eligible to participate in the auction are responsible for accessing the account that has been granted to check in for participation in the auction according to the time specified in the Auction Regulations. Those who are eligible to participate in the auction will bid according to their own code.

In case an eligible bidder does not access the account that has been granted to check in for participation in the auction according to the time specified in the Auction Regulations, it is considered that he/she did not attend the auction as prescribed in Point a, Clause 6, Article 39 of the Law on Asset Auction, except in cases of force majeure.

- The bidding time of the auction is agreed upon by the property auction organization and the person with the auctioned property, but it is at least 15 minutes. In case the highest bidder withdraws the bid within 01 minute before the end of the auction, the bidding time will be extended by 03 minutes after the end of the auction.

- The property auction organization assigns an auctioneer, the Property Auction Council, the organization in which the State owns 100% of the charter capital established by the State Bank of Vietnam to handle bad debts of credit institutions assigns members to run the auction on the National Property Auction Portal or the online auction page. At the end of the auction, the determination of the auction winner is carried out as follows:

In case the bidding is done by the method of bidding up, the auction winner is the person with the highest bid recorded by the online auction system;

In case the bidding is done by the method of setting a price down, the auction winner is the first person to accept the starting price or the reduced price recorded by the online auction system.

The code of the auction winner and the winning price specified in Point a, Point b, Clause 4 of this Article shall be announced on the National Asset Auction Portal or the online auction page immediately after the auction ends.

- The results of the online auction shall be publicly posted on the National Property Auction Portal or the online auction page and sent to the email address of the auction participant registered with the asset auction organization, the Asset Auction Council, the organization in which the State owns 100% of the charter capital established by the State Bank of Vietnam to handle bad debts of credit institutions after the code of the auction winner and the winning price are announced on the National Property Auction Portal or the online auction page.

The Article 12, Decree No. 172/2024/ND-CP on online auction results:

- The organization practicing asset auction, the Asset Auction Council, the organization in which the State owns 100% of the charter capital established by the State Bank of Vietnam to handle bad debts of credit institutions shall notify the auction winner of the auction results immediately after the auction ends.

- The notice must clearly state information about the auctioned asset, the start and end times of bidding, the time when the online auction system records the winning auction code, the starting price of the auctioned asset, and the winning auction price.

The Article 13, Decree No. 172/2024/ND-CP on online auction minutes:

The online auction minutes must be made at the end of the auction and must record the time of the start of the auction, the time of the start of bidding, the end of bidding, the number of auction participants, the winning bid price, and the winning bidder. The auction log recorded by the online auction system must be extracted, certified by the organization operating the National Property Auction Portal or the property auction organization operating the online auction page and attached to the auction minutes.

The use of digital signatures in the online auction minutes shall be carried out in accordance with the provisions of law on electronic transactions. The online auction minutes shall be extracted from the National Property Auction Portal or the online auction information page according to the form issued by the Minister of Justice.

This Decree takes effect from January 1, 2025.

This Decree replaces Decree No. 62/2017/ND-CP dated May 16, 2017 of the Government detailing a number of articles and measures to implement the Law on Property Auction and Decree No. 47/2023/ND-CP dated July 3, 2023 of the Government amending and supplementing Decree No. 62/2017/ND-CP dated May 16, 2017 of the Government detailing a number of articles and measures to implement the Law on Asset Auction.