Decree No. 17/2010/ND-CP on property auction

Issue no OS/March 2010 (Gong Baanos 125-1261March 19, 2010) OFFICIAL GAZETTE 5 Part I. LEGAL DOCUMENTS THE GOVERNMENT DecreeNo. 17120101ND·CP of March 4, 2010, on property auction THE GOVERNMENT Pursuant to the December 25, 2001 Law on Organization of the Government; Pursuant to the June 14, 2005 Civil Code; Pursuant to the November 26, 2003 Land Law; Pursuant to the June 3, 2008 Law on Management and Use ofState Property; Pursuant to the November 14, 2008 Law on Enforcement ofCivil Judgments; Pursuant to the July 2, 2002 Ordinance on Handling ofAdministrative Violations; and the Apt il 2, 2008 Osdiruuu:e Amending urul Supplementing the 2002 Ordinance a ll Handling ofAdministrative Violations; At the proposalof the MinisterofJustice, DECREES: Chapter1 GENERAL PROVISIONS Article 1. Scope of regulation 1. This Decree provides for property auction principles, order and procedures, auctioneers, property auction organizations, and state management of property auction activities . 2. This Decree applies to the auction or the following kinds of property: aJ Property for judgment enforcement under the law on judgment enforcement; blProperty beingmaterialevidencesormeans used in administrative violations which are confiscated into state funds under the law on handling of administrativeviolations; cl Security property subject to auction under the law on security transactions; d/ State propertysubject to auction under the law on management and use of state property; property being land use rights in case the State allocates landandcollects landuse levyor leases land through auction under decisions of competent state agencies; elOtherproperty subject toauction under law. 3. Individuals and organizations that select professional auction organizations defined in Article 14 of this Decree for selling their own property shall comply with property auction principles, order andproceduresprovided in this Decree. 4. The sale of state property overseas or of special property in people's armed forces units is not regulated by this Decree but ruustcomply with relevant laws applicable to such property. Article 2. Interpretation of terms In this Decree, the terms below are.construed as Iollows: 1. Property auction means a form of public sale of property in which increasing bids are offered by two or more bidders according to the principles, orderandprocedures providedin this Decree. Offerof increasing bids means the offer of bids from lower to higher levels until the highest bidder is identified. 6 OFFICIAL GAZETTE Issue no DB/March 2010 (Gong BaD nos 125-1261March 19, 2010) 2. Auctioneer means a person possessing an auction practicecertificate under this Decree. 3. Successful buyer of property at auction means the person who offers the highest bid compared to the reserve price. If nobody offers a bid higherthanthe reserveprice,property may be sold at the reserveprice. 4. Property put up for auction may include movable s, real estate, valuable papers and property rightspermittedfor trading under law. 5. Bid difference meanstheminimum amount by which a bid must exceed the preceding bid. The property auction organization shall specify a bid difference suitableto each auction. 6. Personshavingpropertyput up for auction include property owners, persons authorized by property owners to sell property, persons responsible for delivering property for auction or individuals or organizations having the right to sell others' property under law. 7. BIdders include individuals or representatives of organizations qualifiedto bid for property at auction under this Decree and other relevant laws. Article 3. Property auction principles 1. Property auction must adhere to the principles of publicity, continuity, objectivity, honesty, equality, and protection of the lawful rights and interests of the involved parties. ? . All aucti on s mu st b e r-on dnr-terl hy auctioneers according to the property auction order and procedures provided in this Decree, except the case specified in Article 20 of this Decree and unless otherwise provided in laws and ordinances. Article 4. Protection of lawful rights and interests of successful buyers of auctioned property 1.The lawfulrightsandinterests of successful buyers of auctioned property shall be protected under law. Competent state agencies shall, within the ambit of their tasks and powers, guarantee the lawful rights and interests of successful buyers of auctioned property. 2. In case a third party has a dispute over the ownership or use right of the auctioned property, such ownershipor use right shall be determined under the civil law. 3. In case a competent state agency issues a decision partially amending or annulling all decisions concerning the to-be-auctioned property due to violations of law committed before the property is put up for auction while theauction of suchproperty hasbeenheldstrictly according to the orderandprocedures prescribed by law, such property will still come under the ownershipor use right of its successful buyer. Organizations or individuals that cause damagedue to theirfaultshallpaycompensation under law. Chapter II AUCTIONEERS Article 5. Criteria for an auctioneer A Vietnamese citizen permanently residing inVietnam whosatisfies all thefollowing criteria may work as an auctioneer: 1. Having good moral qualities; 2. Being a university graduate in law or economics; 3. Having completed an auction profession training course. Issueno08/March 2010 (Cong 8ao nos 125-126/March 19, 2010) OFFIC IAL GAZETTE 7 Article 6. Auction profession training 1. Holders of university degree in law or economics may register to attend auction profession training courses with auction profession training establishments. 2. The duration of an auction profession training course is 3 months. Training contents include legal knowledge, professional ethics, auctio n prac tice skills, and probation at a protessional auction organization,A person who completes the auction profession training proeram will he l ~~l1 p;rl an auction profess ion training certificate by the auction profession training establishment. 3. The Ministry of Justice shall specify the framework program for auction profession training courses and auction profession training establishments. Article 7. Persons who are not required to attend auction profession training or are entitled toa shortened auctionprofessiontrainingduration I. The following persons are not required to attend auction profession training: aIProfessors, associate professors anddoctors of law; professors, associate professors and doctors of economics; lawyers and executors. bl Principal verifiers in the court system and principal examiners in the procuracy systern. . princ ipal inspectors; principal verifiers in ju dgment enforce ment; princi pal officials; principal researchers and principal lecturers in law or economics; cl Senior verifiers In the court system and senior examinersin theprocuracy system; senior inspectors: se nior verifie rs in judgme nt enforcement; senior officials and senior researchers in law or economics; dl Judges, procurators, investi gators, auctioneers, notaries public and civil judgment enforcers. 2. Holders of university diplomas in law are entitled to a shortened legal knowledge trainlug duration. The Ministry of Justice <han specify the shortened auction profession training duration. Article 8. Issuance of auction practice certificates 1 A nnssier of TP:t}uest for an auction practice certificate comprises: aIAn application for the certificate; bl A curriculumvitae stuck with a photo and certified by a competent agency; cl A judicial record card; dI A copy of the university degree in Jaw or economics; eI A copy of the auction profession training certificate, or evi dencing paper for those not required to attend auction profession training specified in Article 7 of this Decree; fl Two 3 em x 4 cm photos. 2. An applicant for an auction practice certificate shall send one dossier set to the Ministry of Justice and pay a fee under regulations. Within 15 working days after receiving a valid dossier, the Ministry of Justice shall issue an auction practice certificate to the applicant. In case of refusal, it shall notify in writing the reason to the applicant. 3. The auction practice certificate serves as a ground for practicing property auction. Article 9. Persons ineligible for issuance of auction practice certificates S OFriCIAL GAZeTTE Iscueno OS/March 2010 (Gong Bao nos 125·1261March 19,2010) 1. Cadres and civil servants; army officers and professional army men and defense workers in People 'sArmy agencies and units; operational officers and non-commissioned officers and technical officers and non-commissioned officers in People's Public Security agencies and units, except cadres and civil servants who need auction practice certificates to work for property auction service centers. 2. Persons who hav e lost their civil act capacity or have it restricted. 3. Persons who are currently subject to penal liability examination or who have been convicted and are not.entitled to criminal record remission. 4. Persons who are currently subject 10 other administrative handling measures or who have been subjected to other administrative handling measures but the duration after which they are regarded as not yet having subjected to such measures has not expired under the law on handling of administrative violations. Article 10. Re-issuance of auction practice certificates I. The bolder of an auction practice certificate which is lost or unusably damaged may have it re-issued, 2. A dossier of request for re-issuance of a certificate comprises: a/ An application fOF re -issuance of a certificate; b/ The damaged certificate. Fora lost auction practice certificate. a competent agency's or organization 's certification is required. ~. The procedures and time limit to r re issuance of an auction practice certificate are the same as those specified in Clause 2, Article 8 of this Decree. Article 11. Revocation of auction practice certificates I. The holder of an auction practice certificate may have it revoked in the following cases: aJ Any of the cases specified in Article 9 of this Decree; b/ He/she fails to regularly work at a property auction organization or no longer operates in tbe field of property auction; c/ He/she has not conducted any auction for one year, unless he/she can give a plausible reason; dI He/she has been deprived of the right to use the certificate indefinitely under the law on handling of administrative violations; e/ He/she commits prohibited acts specified in Article 13 of this Decree. 2. The Minister of Justice may revoke auction practice certificates and shall specify procedures for such revocation. Article 12. Rights and obligations of an auctioneer I. To regularly work at a professional auction organization. 2. To personally conduct property auctiuns and take responsibility before law and the property auction org anization for property auction. 3. To adhere to the property auction principles provided in Article 3 of this Decree. 4. To deprive of the bidding right of violators of property auction rules. 5.To be objective and impartial in conducting Issue noOa/M.rch 2010 (C6ng Baanos 125·1261March 19, 2010) OFFIC IAL GAZETTE 9 property auction. 6. To compensate under law for damage caused by his/her fault to the property auction organization. 7. To exercise other rights and perform other obligations provided for by law. Article 13. Prohibited acts of an auctioneer I . Lea si ng , lendi ng or a llowing other organizations or individualS to use his/her auction prac tice certi ficate for carrying out auction activi ties. 2. Receiving any sum of money or benefit from the person having property put up for auction other than the auction charge and expenses agreed in the contract, or abusing his/ her capacity as an aucti oneer to ga in other benefits from organizations or individuals. 3.Abusing his/her responsibilities and powers to collude with organizations or individuals for self-seeking purposes. ChapterTil PROPERTY AUCTION ORGANIZATIONS Article 14. Professional auction organizations I. Property auction service centers. 2. Property auction enterprises and enterprises which have different business lines including the provision of property auction services (below collectively referred to as property auction enterprises). Article IS. Property aucrion service centers I. A property auction service center (below referred to as center) shall be set up under a decision of the chairperson of a provincial-level People's Committee. Each province or centrally run city may set up only one center. 2. Such center is a revenue-generating non business unit having a head office, the legal entity status, seal and ban k account. The center 's director must be an auctioneer. Ar ticle 16. Property auction enterprises I. Property auction enterprises shall be set up and operate under the enterprise law and this Decree. 2. In addition to the conditions on setting-lip and operation of enterprise of each type under the enterprise law, to provide property auction services , an enterprise must satisry all the following conditions: a/ Its representat ive at law must be an auctioneer; b/Having a head office. physical foundations and other equipment necessary for property auction activities. 3. Within 7 working days after obtaining a business regis tration certi ficate, an enterprise shall notify in writing its business registration to the provincial-level Justice Department of the locality where it is headquartered. Article 17. Rights of a professional auction organization I. To request the person having property put up for auction to provide adequate and accurate information and papers related to such property. 2. To reques t the suc cessful buyer of auctioned property to pay for such property and fulfill other obligations stated in the contract on purchase and sale of auctioned property, 3. To request the person having property put 10 OFFICIAL GAZETTE Issueno OS/March 2010 (Cong BaD nos 125-1261March 19, 2010) up for auction to pay property auction charges and expenses and fulfill other obligations stated ill the property auction contract. Article 18. Obligations of a professional auction organization 1. To auction property according to the principles, order emuprocedures specified in this Decree and take responsibility for property auction outcomes. 2. To issue property auction rules in accordance with this Decree and relevant legal documents. 3. To deliver property assigned to them for preservation or management to its successtul buyer; to request the person having property put up for auction to deliver such property to its successful buyer in case the latter is personally managing such property. 4. To provide adequate papers related to property put up for auction to its successful buyer. 5. To comply with the labor, tax, finance and statistics laws. 6. To keep books for monitoring auctioned property and property auction registries. 7. To pay compensation for damage caused by its auctioneers and other employees due to their fault during auction. 8. To perform other obligations stated in the property auction contract or the contract on purchase and sale of auctioned property. 9. To issue auctioneer's cards to auctioneers for use in performing their duties, with the details the same as those stated in their auction practice certificates. 10. To register a list of auctioneers and the modification and supplementation of such list with the provincial-level Justice Department of the locality where it is headquartered. 11. To report on its organizational apparatus and operation to the provincial-level Justice Department on a biannual and annual basis or upon request. Article 19. District-level property auction councils 1. District-level property auction councils shall be set up under decisions of chairpersons of People's Committees of urban districts , rural districts , towns or provincial cities (below collectively referred to as district-level People 's Committees) for auctioning property that is confiscated material evidences and means used in administrative violations under the law on handling of administrative violations. 2. A district-level property auction council consists of representati yes of the agency competent to decide on property confiscation , the district-level Finance Division and Justice Division and relevant agencies. Article 20. Property auction councils in special cases 1.A property auction council in a special case shall be set up for auctioning state property, property being land use rights of great value or involving complicated circumstances or when no professional auction organization can be hired to conduct auction. 2.A property auction council in a special case consists of representatives of the agency competent to decide on the property auction , finance agency and justice agency of the ~aIUC level, and relevant agencies and organizations. Issue no 08/March 2010 (Gong Bao nos 125-1261March 19, 2010) OFFIC IAL GAZETTE 11 Article 21. Rights and obligations of a property auction council 1. A property auction council defined in Article 19 or 20 of this Decree has the following rights and obligations: aJ The rights specified in Article 17 and the obligations specified in Clauses 1,2,3,4,6 and " 8, Article 18, of this Decree; bl To sign contracts with a professional auction organization for assigning its auctioneer to run the Council's auctions, except property auction councils ill special cases defined in Article 20 of this Decree; c/ To perform the financial and statistical obligations under law. 2. District-level People's Committees shall biannually andannually reporttoprovincial-level Justice Departments on the organization and operation of property auction councils they have set up. A property auction council in a special case shall report in writing on the outcomes of each auction to the agency which has issued the decision to set up the council up and the provincial-level Justice Department of the locality where the council is set up, 3. The agency which has issued the decision to set up a property auction council shall settle complaintsarisingafter thecouncildissolvesand compensate for damage caused due to the fault of the council's auctioneers or members during auction. The property auction council's auctioneers and membersshall pay compensation under law fordamagecauseddue totheirfault to theagency which has issued the decision to set up the council. Chapter IV PROPERTY AUCTION ORDERAND PROCEDURES Article 22. Selection of property auction organizations Persons having property put up for auction may select a professional auction organization to auction their property in the forms provided in this Decree, unless otherwiseprovidedfor by law. Article 23.Determination of thereserveprice of property put up for auction 1. The reserve price of property put up for auction shall be determined before the signing of a property auction contract or before the delivery of the property for auction, unless otherwiseprovided for by law. 2. The reserve price of property put up for auction shall be determined as follows: al For property put up for auction for judgment enforcement, their reserve price shall be determined under the law on enforcementof civil judgments; bl For property put up for auction that is material evidences or means used in administrative violations, theirreservepriceshall be determined under the law on handling of administrative violations; if the property price cannot be determined under the law 011 handling of administrative violations, a council shall be set up for determining such price; cI For property that is material evidences to be auctioned underdecisionsof competentstate agencies, their reserve price shall be determined under the penal, criminal procedure and other 12 OFFICIAL GAZETTE Issue no 08/March 2010 (Gong BaD nos 125-126/March 19, 2010) relevant laws; dI For state property put up for auction, their reserve price shall be determined under the law on management and use of state property; el For property that is land use rights to be auctioned for allocation of land subject to land use levyorfor land lease, theirreserve pricesha11 be determined under the land law; f/ For property under the ownership of individuals or organizations that wish to have such property auctioned, these individuals or uigauizatious shall deteuuiue its reserve price ur authorize others to do so. Article 24.Assessmentof propertyputupfor auction 1.Propertyputup for auctionshall be assessed upon request or under law. 2. In case of assessment upon request, the assessment requester shall pay assessment expenses, unless otherwise agreed by the parties, In case assessment is required by law, the person having property put up for auction shall pay assessment expenses, unless otherwise provided for by law. Article 25. Property auction contracts 1.A property auction contractshall be signed between a property auction organization and a person having property put up for auction or hisl her representative. For property that is material evidences or iueaus used ill admiuisuatl ve violatiuns, the district-level property auction service center or property auction council shall, based on the property confiscation decision and property delivery record, conduct an auction without having to sign a property auction contract. 2. A property auction contract must be made in writing and contain the following principal details: a/Full name and address of the person having property put up for auction; nameand addressof the property auction organization; bl List and description of the property; cl The reserve price of the property; dl Time and place of the auction; el Time limit, place and method of delivering the property for auction; fl Timelimit, placeandmethod of paying for property in case of successful auction; gl Auction charges and expenses in case of successful auction, or auction expenses in case of nnsuccessful auction; hI Rights and obligations of the parties; il Liabilities for contractbreaches; jl Other details as agreed hy the parties. Article 26. Signing of property auction contracts I. For the following kinds of property put up for auction, the parties to a property auction contract shall be determined as follows: al For property used for judgment enforcement, such contract shall be signed by the judgment enforcer competent to dispose of such properly and a professional auction organization; bl For state property, such contract shall be signed by a stateagency competent to decide on thesaleof stateproperty underlawanda property auction organization; cl For property undercommon ownership by Issue no08/March 2010 (Gong BaD nos 125-1261March 19, 2010) OFFICIAL GAZETTE 13 integration, such contract shall be signed by co owners or their representatives and a professional auction organization, unless otherwise agreed by the parties; d/ For property under common ownership by shares, such contract shall be signed by the owner of the part of property put up for auction or his! her representative 'and a professional auction organization; e! For property used for pledge, mortgage or guarantee, such contract shall be signed by the person with the right to dispose of such property as agreed in the pledge, mortgage or guarantee contract or provided for by law and a professional auction organization; ff For property that is material evidences in legal proceedings, such contract shall be signed between the head of the agency competent to dispose of and a professional auction organization; g! For prop erty under ow ners hip of individuals or organizations, such contract shall be signed between these individuals or organizations or their authorized persons and a professional auction organization. 2. When signing a property auction contract, the person having property put up for auction shall provide the property auction organization with a lawful certificate or another proof of the ' property ownership or sale right under law and take respons ibility before law for such proof. 3. The property auction organization shall verify the accuracy of information on the origin, ownership and use right of property, which is provided by the person having property put up for auction. Article 27. Unilateral termination of property auction contracts 1. The per, nn having pf()p~rty put lip for auction or a professional auction organization may unilaterally terminate a property auction con trac t under the Civ il Code before the organization posts up and publicly notifies property auction information, unless otherwise provided for by law. 2. The party unilaterally terminating a contract shall notify such in writing to the other party and pay all actually arising expenses (if any). Ar ticle 28. Posting up and public notification of property auction information L A property auction organization shall post up information on the auction of property being movables at the place of auction, the place of property display and the place where it is headquartered at least 7 days before conducting the auction, unless otherwise provided for by law. For rea l es ta te, th e prop ert y auction organization shall post up proper~y auction information at the place of auction, the place where exists the real estate to be auctioned and the commune-level People' s Committee of the locality where exists such real estate at least 30 days before opening the auction, unless otherwise provided for by law. FOi property under ownership of individuals or organizations, the time limit for posting up property auction information may be shortened as agreed by the parties. 2. For to-b e-a ucti on ed prop er ty th at is movables with their reserve price of 30 million dong or more or real estate, the property auction organization shall, simultaneously with posting up auction information , publicly notify such information at least twice at 3-day intervals in a 14 OFFICIAL GAZETTE Issue noOS/March 2010 (Gong Baanos 125·1261March19, 2010) central mass medium or a mass medium of the locality where exists property put up for auction. The deadline for public notification is specified in Clause 1 of this Article. The public notification of iufouuatiun ill the mass media also applies to to-be-auctioned property that is real estate with the reserve price of under 30 million dong if so requested by the person having such property. 3. Property auction information to be posted up and publicly notified includes: aJ Name and address of the property auction organization; bl Time and place of auction; cl List, quantity and quality of property put up for auction; dI Reserve price of the property; el Place and duration of property display; fl Place and time limit for reading the dossiers of the property; gl Place and time limit for registering the purchase of the property; hi Other necessary information relating to the property, including information to be publicly notified at the request of the person having the property. Article 29. Registration of participation in property auction 1. A bidder shall pay an auction participation charge and a deposit. The auction participation charge complies with the law on charges and fees. The deposit shall be agreed by the property auction organization and the person having property put up for auc tion . which must be between I% and 15% of the reserve price of the property put up for auction. Such deposit shall be paid to the property auction organization. 2. A bidder may authorize in writing another to participate in the auction on hislher behalf. 3. In case a bidder who has paid a deposit succeeds in buying the auctioned property, such deposit will be subtracted from the purchase price. If he/she fails to buy the property, such deposit shall be returned to him/her after the auction finishes, unless otherwise provided for by law. 4. IIIcase a registered bidderhas paid a deposit but does not participate in the auction and this is not «forcemajeure case, such deposit will belong to the property auction organ ization, unless otherwise agreed by the parties. Article 30. Persons disallowed to participate in property auction I. Persons having no civil act capaci ty, persons having lost their civil act capacity or having it restricted or persons unable to perceive or control their acts at the time of auction. '2. Persons working in property auction organization s or places of auction and their parents, spouses, children and siblings; pe.rsons directly assessing or valuing property and their parents, spouses, children and siblings. 3. Persons authorized by property owners to sell such property; persons issuing decisions to confiscate property being material evidences or means used in administrative violations; persons competent to decide on the sale of state property; persons signing contracts to hire property auction organizations for auctioning state property; and individuals and organizations having the right to sell others' property under law. • Issue 110 Oa/M.rell 2010 (Gong Baanos125-1261March 19, 2010) OFFICIAL GAZETTE 15 4. Person s not entitled to buy auctioned property under law, including: aJ Persons disallowed to buy property put up for auction for judgment enforcement under the law on enforcement of civil judgments; b/ Persons ineligible to buy property, for some kinds of property specified by law. 5. Persons disall~wed to be transferred land use rights; persons ineligible for allocation of land subject to land use levy or for land lease by the State under the land law. Article 31. Display and examination of property put up for auction I. For to-be-auctioned property being real es tate , bidde rs may person ally examine the property from the time inform ation on such property is posted up and publicly notified till 2 days before the opening date of the auction. 2. For to-be-auctioned property be ing movables, at least 2days before the opening date of the auction , the auctioneer shall create conditions for the bidders to examine such property. On property or property samples, the name of the person havin g the property and information on sueh property must be shown. Article 32.- Auction place A property auction may be held at the head office of the property auction organization, the place where exists the property or another place as agreed by the property auction organization and the person having the property put up for auction. . Article 33. Forms of auction The property auction organization may select any of the foll owing forms of auction for conducting an auction: I. Call auction ; 2. Auction through casting bids; 3. Other forms agreed by the person having property put up for auction and the property auction organization . Article 34. Order of conducting a property auction I. A property auction must be conducted continu ously in the following order: aJ In opening an auction, the auctioneer shall introduce him/herself and his/her assistant; announce the rules of the auction and the list of persons registering to buy property put up for auction and call the roll for identifying the bidders ; introduce each property put up for auction; recall the reserve price; notify the bid differenc e and the maximum Interval between bids (if any); and answer questions raised by the bidders: b/ The auctioneer shall ask the bidders to offer bids. After a bid is offered, the auctioneer shall publicly announce it to the bidders: c/ After the auctioneer has repeated thrice the highest bid, if nobody offers a higher bid, he/she shall announce the successful buyer of the auctioned property. After such announcement, this buyer will be regarded as having accepted to sign a contract on purchase and sale of the propeny. In case the announced highest bid is lower than the reserve pri ce, the auction will be regarded unsuccessful. In case of auction through casting bids, if two or more persons offer the same highest bid. the auctioneer shallconduct another auction between 16 OFFICIAL GAZETTE Issue no DB/March 2010 (C6ng Baa nos 125-126/March 19, 2010) these persons to select a successful buyer. If no one has offereda higherbid, the auctioneer shall organize a draw to for select a successful buyer. 2. The proceedings of an auction must be recorded in a minutes. which must bear the signatures of the auctioneer conducting the auction, the minutes maker, abidderanda person attending the auction (if any). 3. The outcomes of a property auction shall be reco rded in the property auction register. In case of successful auction , the auctioneer conducting the auction shall make a contract on purchase and sale of the property put up for auction. 4. The propertyauctionorganization shall, on a case-by-case basisorat therequest of theperson having property put up for auction. invite concerned.organizations andindividuals to attend the auction. Article 35. Contracts on purchase and sale of property put up for auction 1.Acontractonpurchaseandsaleof property put up for auction is valid for certifying the purchaseand sale of property put up for auction and serves as a legal groundfor the transfer the ownership or lise right of such property, 2.Acontract onpurchase andsaleofproperty put up for auction contains the following principal details: al Name and address of the property auction organization; bl Full nameof theauctioneer conducting the auction; cl Full name andaddress of the person having property put up for auction; dl Full name, address and number of the identity card of the successful buyer of the property; ef Time and place of auction; fl Property put up for auction; gf Reserve price of the property ; hi Selling priceof the property; if Time limit, method and place of payment for the auctioned property; j/ Time limit and place of handover of the auctioned property to its successful buyer in accordance with the property auction contract, unless otherwise agreed by the involved parties; kI The parties' liabilities for breaching their obligations. 3. A contract on purchase and sale of auctionedproperty shall be signed bytheproperty auction organizationand the successful buyer of the property. For property whose purchase and sale contracts are subject to notarization or registration under regulations, these contracts must comply with such regula tions. 4.Acontractonpurchaseandsaleof property put up for auction shall be made in at least 4 copies,eachofthemshallbe keptby theproperty auction organization and sent to the successful buyer of the property, the person hav ing the property put up for auction and the state agency competentto register theownership anduse right ofproperty. Incase theproperty putupforauction is real estate, a copy of such contract shall be sent to the tax agency. Article 36. Rights and obl igations of successful buyers of auctioned property 1. The rights and obligations of a successful buyer of auctioned property sha ll be determined from the time the auctioneer announces such Issue noOB/March 2010 (Cong BaD nos 125-1261March 19, 2010) OFFICIAL GAZETTE 17 buyer. 2. A successful buyer of property put up for auction has the following rights and obligations: alTo fully pay for the property to the property auction organizallon; blTo receive the bought property and exercise all rights and perform all obligations indicated • in the contract on purchase and sale of the property; cl To be issued by a competent agency a certificate of ownership or use right of the property; d/ Other rights and obligations provided for by law. Article 37. Auction of property with a sole bidder I . The auction of property with a sole bidder does not apply to property specified at Point d, Clause 2, Article 1 of this Decree. 2. Upon the expiration of the time limit for registration of participation in an auction, if only one person registers to buy the auctioned property or more than one person register to participate in the auction but only one of them actually participates in the auction and offers a bid at least equal to the reserve price, the property put up for auction shall be sold to such person if so agreed by the person having such property. In ' this case, the sale of property shall be effected only after information on such property has been posted up and publicly notified and such property has been displayed and no complaint is lodged about the auction order and procedures until the property sale decision is made. 3. When selling property under Clause 2 of this Article, the auctioneer responsible for property auction shall make a minutes on the sale of property, write the outcomes in the property auction register and make a contract on purchase and sale of the property. A minutes ou the sale uf property must describe the process of auction with a sole bidder and the agreement of the property owner, and bear the signatures of the auctioneer, the minutes maker, the property owner and the successful buyer uf the property. Article 38. Withdrawal of offered bids I. At an auction, if the person having offered the highest bid withdraws the bid before the auctioneer conducting the auction announces the successful buyer, such auction will still continue, starting from the immediate lower bid already offered. If nobody further bids, the auction will be regarded unsuccessful. 2. The bid-withdrawing person shall be deprived of his/her right to further offer bids and not he refunded the paid deposit, which wiIl belong to the property auction organization. Article 39. Refusal to buy auctioned property 1. At an auction, when the auctioneer conducting the auction has announced the successful buyer of property but this buyer refuses to buy it, such property shall he sold to the person offering the immediate lower bid if such bid plus the deposit at least equals the bid offered by the refusing person. For an auction conducted in the form of casting bids, in the above case, if 2 or more persons offer the same immediate lower bid, and such bid plus the deposit at least equals the bid offered by the person refusing to buy property, such property shall be sold to any of these persons 18 OFFICIAL GAZETTE Issue 110 08/March 2010 (Gong Baanos125·126/March 19,2010) after the auctioneer organizes a draw to select the successful buyer. In case the immediate lower bid plus the deposit is sma ller than the bid offered by the person refusing to buy property, the auction will be regarded unsuccessful. 2. In case the person offering the immediate lower bid refuses to buy property, the auction will be regarded unsuccessful. 3. The deposit made by the person refusing to buy property specified in Clause 1 of this Article will belong to the person having property put up for auction. Artlcle-40. Return of property put up for auction in case of unsuccessful auction In case of unsuccessful auction, the property auction organization shall return the property to its owner within 3 working days from the date of unsuccessful auction, unless otherwise agreed by the parties or provided for by law. Article 41. Time limit , method and place of payment for, and handover of, auctioned property 1. The time limit, method and place of payment for auctioned property shall be agreed by lilt: prop erly auctlou crgauiza tion aud the successful buyer of the property in the contract on purchase and sale of the property, unless otherwise provided for by law. 2. The time limit and place of handover of auctioned property sha ll be agreed by the property auction organization and the successful buyer of the property in the contract on purchase and sa le of the property, un less otherwise provided for by law. Ar ticle 42. Redemption of auctioned property 1.A person having property put up for auction may only redeem the auctioned property if so agreed by il, successful buyer. 2. The redemption of auctioned property complies with the Civil Code 's provisions on property purchase and sale contracts. Artide 43. Pro perty auction charge and expenses 1. In case of suc cessful auction, unl ess otherwise provided for by law, the person having property put up for auction shall pay to the property auction organization the following charge and expenses: aI Auction charge under the law Ull charge, and fees; bl Actual and reasonable expenses for property auction as agreed by person havin g property put up for auct ion and the property auction organization. 2. In case of unsuccessful auction, the person having property put up for auction shall pay to the property auc tion organ ization actual and reasonable expenses specified at Point b, Clause I of this Article, unless otherwise agreed by the parties or provided for by law. 3. For property auctioned for judgment enforcement, in case of unsuccessful auction, the judgment enforcement agency shall pay prop-r auction expenses to the property auct. organ ization. 4. For property being material evidences and means used in administrative violations, in case of unsuccessful auction, the finance agency shall pay auction expenses to the district-level property auc tion ser vice center and property auction council in accordance with law. Issue no OS/March 2010 (Gong Beo nos 12S-1261March 19, 2010) OFFICIAL GAZETTE 19 Article 44. Charges for the service of completing procedures forownership or useright transfer and other services related to property put up for auction (below collectively referred to as service charges) 1.Organizations andindividuals thatwish and have the service of completing procedures for ownership or userighttransfer andotherservices related to property put up for auction provided by property auction organlzations shall pay service charges to suchorganizations. 2. Service charge rates shall be agreed by the parties on the basisof necessary and reasonable expenses and market prices. Article 45. Management and use of property auction charge andexpenses, servicecharges and other revenues 1. Property auction charge and expenses, service charges and other revenues of property auction service centers shall be managed and used under the law on charges and fees and financial regulations applicable to non-business units with revenues. 2. Property auction charge and expenses, service charges and other revenues of property auction enterprises shall be managed and used under the law on charges and fees and financial regulations applicable to enterprises. 3. Property auction expenses of property auction councils specified in this Decree shall be managed and used under the Finance Ministry's guidance. Article 46. Issuance of certificates of ownership or use right of auctioned property 1. Competent state agencies shall issue property ownership or use right certificates to successful buyers of property put up for auction. 2. The time limit for issuing a certificate of ownership or use right of auctioned property complies with regulations applicable to such kind of property. 3. Based on written certifications of auction outcomes, competent agencies shall issue land userightcertificates andhouse andland-attached assetownership certificates to successful buyers ofproperty putupforauction in accordance with the land law. Article 47. Liability for the valueandquality of auctioned propeny Property auction organizations are not liable for the value and quality of auctioned property, unless they fail to fully and accurately notify bidders of necessary information relating to the value and quality of auctioned property under property auction contracts. Article 48. Cancellation of propertv auction outcomes 1. Property auction outcomes shall be cancelled in the following cases: at When it is so agreedby the person having property put upfor auction, the successful buyer of property and the property auction organization, unless otherwise provided for by taw. For property auctioned for judgment enforcement, thejudgment debtor 's agreement isalsorequired. bl When the property auction contract or contract on purchase and sale of property putup for auction is declared to be null and voidby the court or cancelled under the civil law; cl When they are cancelled under decisions 20 OFFICIAL GAZETTE Issue noOB/March 2010 (Gong Bao nos 125-1261March 19, 2010) of persons with sanctioning competence under the law on handling of administrative violations and Clause 3, Article 56 of this Decree. 2. When the property auction outcomes are cancelled under this Articl e, the parties shall restore the original state of the received property and return it to one another; property which cannot be returned in kind must be returned in cash. The damage-causing party shall pay compensations under law. Article 49. Re-conducting of auctions 1. In case of unsuccessful auction, property put up for auction shall be handled under law or the agreement between the person having such property and the property auction organization. For property being material evidences or means used in administrative violations, after two price reductions, if the auction still fails, the property auction organization shall return the property to the agency competent to issue confiscation decisions for liquidating the property under the law on handling of administrative violations. Each price reduction must not exceed 10% of the reserve price of property put up for auction. 2.The order and procedures for re-conducting an auction are the same as those for the first time auction. Chapter V STATE MANAGEMENT OF PROPERTY AUCTION Article 50. Responsibilities of the Ministry of Justice The Ministry of Justice is an agency assisting the Government in performing the unified state management of property auction organization and operations nationwide and has the following tasks and powers: I. To elaborate and submit to competent state agencies for promul gation or promulgat e according to its competence legal documents on property auction organization and operations, and guide their implementation. 2. To pr omulgate, manage, and guide according to its competence the use of, forms of documents and papers in property auction, books for monitoring auctioned property and property auction regist ers; to promulgate the form of auctioneer's card. 3. To stipulate the framework programs for auction profession training courses and auction profession training establishments. 4. To issu e, revoke and re-is sue auction practice certificates. 5. To examine and inspect property auction urgaulzatlou and operations according to its competence. 6. To summarize and annually report to the Prime Minister on property auction organization and operations. 7. To implement international cooperation in property auction. 8. To perform other tasks and exercise other powers assigned by the Government. 9. To perform other tasks and exercise other powers provided for by law. Article 51. Responsibilities of the Ministry of Finance 1. To guide financial regulations applicable to property auction operations. Issue no08/March 2010 (C6ng8ao nos 125-1261March 19. 2010) OFFIC IAL GAZETTE 21 2. To guide the determination of the reserve price of to-be-auctioned property being state property or material evidences or means used in administrative violations. 3. To provide general guidance on rates and the management and use of the fee for issuance of auction practice certificates and the auction charge which are state budget revenues under the law on charges and fees. 4. To perform other tasks and exercise other powers provided for by law. Article 52. Responsibiliti es of ministries. min isterial-level agencies and govern ment attached agencies Within the ambit of their tasks and powers, min istries. mini sterial-level agencies and government-attached agencies shall coordinate with the Mini stry of Justi ce in the state management of the auction of property under their management. Article 53. Responsibilities of provincial level People's Committees 1.Provincial-level People's Committees shall perform the state manage men t of pro perty auction operations in their localities and have the following tasks and powers: aJ To decide on the appointment and relief from duty of directors of property auction service ' centers; bl To assure payrolls, physical foundations and working conditions for such centers under regulations applicable to revenue-generating non business units; cf To set specific rates of the auction charge for application in their localit ies, pursuant to resolutions of provincial-level People's Councils and the law on charges and fees; dITo examine, inspect. and handle violations related to property auction organization and operations in localities acc ordi ng to their comperence; efToannually report to the Ministry of Justice on property auction organiza tion and operations in localities for summarization and reporting to the Prime Minister; fl To perform other tasks and exercise other powers provided for by law. 2. Provincial-l evel Justice Departments shall assist provincial-level People's Committees in performing the state management of property auction in localities, and have the following tasks and powers: al To guide local property auction organizations in property auction operations; bl To formulate a scheme on the roadmap for converting property auction service centers to operate as enterprises, for provinces and centrally run cities with two or more property auction enterprises, submit it to provincial-level People's Comm ittees fo r approv al and organize the impl em ent ati on of the scheme after it is approved; cl To examine, inspect, and handle violations related to property auction orga nization and opera tio ns in localit ies according to their competence; df To annually or extraordinarily report on property auction organization and operations in lncal ifies 10 provinci al -level People ' s Committees and the Ministry of Justice; dI To perform other tasks and exercise other pow ers under decisions of cha irpersons of provi ncial- leve l People 's Co mm ittees or 22 OFFICIAL GAZETTE Issueno OS/March 2010 (Gong Bao nos 125-126/March 19, 2010) authorization of the Minister of Justice. Article 54. Handling of violations of property auction organizations, auctioneers and bidders L Property auction organizations which violate this Decree shall be administratively sanctioned; if causing damage, they shall pay compensation under law. 2. Auctioneers who violate this Decree shall, depending on the nature and severity of their violations, be disciplined , adrninistrati vely sanctioned or examined for penal liability. 3. Bidders that violate this Decree shall, depending on the nature and severity of their violations, be administratively sanctioned or examined for penal liability; if causing damage, they shall pay compensation under law. 4. Acts of administrative violation and the forms, competence and procedures for handling administrative violations in property auction comply with the law on handling of administrati ve violations in judicial and other relevant domains. Chapter VI IMPLEMENTATION PROVISIONS Article 55. Transitional provisions 1. Property auction service centers and property auction enterprises set up before the effective date of this Decree may continue their operation under this Decree. Enterprises having registered to provide property auction services and wishing to auction property of the kinds specified in Clauses 2 and 3, Article 1 of this Decree must satisfy all the conditions specified in Article 16 of this Decree. 2. To auction land lise rights, land fund development organizations set up under the land law shall sign contracts with professional auction organizations defined inArticle 14 of this Decree. 3. Auctioneer's cards issued under Decree No. 05/2005/ND-CP have the same legal validity as auction practice certificates, Article 56. Effect 1. This Decree takes effect on July 1, 2010, and replaces the Government's Decree No. 051 2005/ND-CP of January 18, 2005, on property auction. 2. The provisions on the property auction order, procedures and guidance in the following documents cease to be effective: aJ Point d and e, Clause 2, Article 44 of the Government's Decree No. 159/2007/ND-CP of October 30, 2007, on the sanction ing of administrative violations in forest management and protection and forest product management; bl Clause 4, Article 62 of the Government's Decree No. 18112004/ND-CP of October 29, 2004, on the implementation of the Land Law;" cl Articles 7 thru 11, and the provisions on auction councils under Clause 1, Article 12 of the Prime Minister's Decision No. 21612005/QD TTg of August 31,2005, on the auction of land use rights for allocation of land subject to with land use levy or for land lease. 3. To add the remedy "cancellation of property auction outcomes" for administrative violations "failure to comply with regulations on posting up and public notification of property auction information" under Point a, Clause 1, Article 29 of Decree No . 60/2009/ND-CP, on the sanctioning of administrative violations in the . ---" ", .. Issue no 08/March 2010 (Gong Baa nos 125·1261March 19, 2010) OFFiGil\L Gf.\ZETTE 23 judicial domain, 4. Otherproperty auction-related provisions which arecontrary tothisDecree areallannulled. Article 57. Implementation responsibility 1. The Ministry of Justice shall assume the prime responsibility for, and coordinate with concerned ministries' and branches in, guiding the implementation of thisDecree. 2. Ministers, heads of ministerial-level agencies, heads ofgovernment-attached agencies and chairpersons of provincial-level People's Commi trees shall implement thisDecree. On behalfofthe Government Prime Minister NGUYJ::N 'jAN DUNG