New decree on property auction
On 04 Mars 2010, the Government issued the Decree No. 17/2010/ND-CP on property auction ("Decree 17") which replaces the Decree No. 05/2005/ND-CP dated 18 January 2005 on the principles and procedures for property auction; auctioneers; property-auctioning organizations and State management over property auction operations.
Decree 17 provide materials amendments and supplementations. It clearly provides for properties to which the auction procedure is applied. To improve the quality and the profession of auctioneers, Decree 17 also regulates minimally and more specifically the qualifications for auctioneers and their liabilities. An auctioneer must be a bachelor of law or of economics and must pass an auctioneer training course.
Besides, Decree 17 clearly specifies the types of property auction organizations, raising the thresholds of deposits which were maximum 5% of the reserve price under the previous regulation to now a range of 1% to maximum 15% of the reserve price.
One of the new remarkable points of this Decree 17 is the disposition to restrict the collusions in property auctions. If a bidder refused to buy the auctioned property, deposit shall belong to the property owner. Simultaneously, the auctioned property shall also be sold to the bidder of immediate lower price if the total value of immediate lower price plus the deposit is not lower than the price of the refused bidder.
This Decree takes effect from 01 July 2010.
print preview 
contact us