Decree 47/2023/ND-CP amending Decree 62/2017/ND-CP guiding the Law on Property Auction

On July 3, 2023, the Government issued Decree 47/2023/ND-CP amending Decree 62/2017/ND-CP detailing a number of articles on measures to implement the Law on Property Auction 2016.

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Basic information of Decree 47/2023/ND-CP

Basic information about Decree 47/2023/ND-CP issued by the Government amending Decree 62/2017/ND-CP detailing a number of articles on enforcement measures, including:

Contents of Decree 47/2023/ND-CP detailing a number of articles on measures to implement the Law on Property Auction 2016.

Regulations on organizing auctions in the form of online auctions

Decree No. 47/2023/ND-CP, as amended and supplemented Article 10 of Decree 62/2017/ND-CP stipulating the order of organizing auction in the form of online auction as follows:

In the case of an online auction, the property auction organization, the Property Auction Council, or an 100% state-owner organization, established by the Government to handle bad debts of the credit institutions shall carry out the order and procedures for property auctions specified in Chapters III and IV of the Law on Property Auction, and in Chapter III of Decree No. 62/2017/ND-CP, as amended and supplemented by Decree 47/2023/ND-CP.

Above subjects organize the auction in the form of an online auction through renting, using the Online Auction Information Website. This Website is set up and operated in accordance with the law on information and communication, the law on e-commerce, including the National Online Auction Information Website, the Online Auction Information Website of 100% state-owner organizations established by the Government to deal with bad debts of credit institutions and the online auction information Website of property auction organizations.

Organizations in which the State owns 100% of charter capital established by the Government to deal with bad debts of credit institutions may only use their organization’s online auction Website to organize online auction for propertys being bad debts and collateral for bad debts as prescribed by law.

The cost of participating in the National Online Auction Information Website, the cost of hiring an property auction organization that has an Online Auction Information Website to organize an auction in the form of an online auction shall be included in the auction cost property prices specified in Clause 2, Article 66 of the Law on Property Auction.

The Ministry of Justice shall assume the prime responsibility for, and coordinate with the Ministry of Finance, relevant ministries to stipulate the cost of using the National Online Auction Information Website under the national property auction portal.

Modifying the order of organizing the auction in the form of an online auction

Decree 47/2023/ND-CP also amends and supplements Article 10 stipulating the order of organizing auctions in the form of online auctions.

Accordingly, the property auction organization, the property auction council, and the organization in which the State owns 100% of the charter capital established by the Government to deal with bad debts of credit institutions shall publish the Regulation on the auction, Public announcement of the auction, together with the list of properties, images and documents related to the property (if any) on the Online Auction Information Website.

Auction participants view auctioned propertys online or view propertys in person according to the Auction Regulations; register to participate in the auction on the Online Auction Information Website. Auction participants who purchase auction participation documents will be granted an account to access through their registered email address.

Auction participants use their login account to receive instructions on how to submit an online auction application, make a reservation through online payment methods, and how to participate in the auction and other necessary contents when participating in the Online Auction Information Website.

Auction participants who submit an application for registration to participate in the auction and a valid deposit may use their login account to participate in the auction in accordance with the Auction Regulations.

A person who is eligible to participate in the auction but does not access the account that has been granted to participate in bidding according to the time specified in the Auction Regulations shall be considered not to participate in the auction specified at Point a, Clause 6. Article 39 Law on Property Auction, except for force majeure cases.

The bidding time of the auction shall be agreed upon by the property auction organization with the property owner but must be at least fifteen minutes.

The property auction organization shall assign an auctioneer, the property auction council, and an state-owner 100% organization, established by the Government to deal with bad debts of the credit institution that assigns members. administer the auction on the Online Auction Information Website. At the end of the auction, the determination of the auction winner is done as follows:

• In case the bidding is done by the up-bid method, the auction winner is the one with the highest bid recorded by the auction network system.
• In case the bidding is done by putting down the price, the auction winner is the first to accept the starting price or the reduced price recorded by the property auction network system.

Auction winners are announced on the online auction network right after the auction ends.

The results of the online auction are publicly posted on the Online Auction Information Website and sent to the email address of the auction participants registered with the property auction organization, the property auction council, and the auctioneer’s email address. property or organization in which the State owns 100% of the charter capital, established by the Government to handle bad debts of credit institutions immediately after announcing the auction winners on the online auction information site.

Note:

In case the property auction organization has submitted a valid online auction implementation scheme in accordance with the Government’s Decree No. 62/2017/ND-CP dated May 16, 2017 detailing a Articles and measures to implement the Law on Property Auction before the effective date of this Decree, the Department of Justice of the provinces shall continue to assess the conditions and approve the eligibility for implementation online auction in accordance with the Government’s Decree No. 62/2017/ND-CP.

Within 2 years from the effective date of this Decree, the property auction organization has an approved online auction information page under Decree No. 62/2017/ND-CP subject to maintenance, maintenance and upgrading of the online auction system to meet the conditions specified in Clause 3, Article 1 of the Decree No. this decision and report the results to the Ministry of Justice, Departments of Justice of provinces and centrally run cities for approval.

Customers need advice on Property Auction Law please contact Viet An Law Firm for the best support.