What is land use rights auction?
Land use rights auction is a form of land allocation or land lease through a public competition process between individuals and organizations with land use needs.
Auction participants will offer the price they are willing to pay for the right to use that land. And the right to use the land will be awarded to the person offering the highest price, in accordance with the conditions of compliance with legal regulations.
Conditions for organizing and participating in land use rights auctions
The 2024 Land Law has been amended and supplemented to enhance transparency and efficiency in land use rights auctions. Below are some points to note when implementing land allocation and lease through auctions under the new regulations.
Conditions for organizing land use rights auction:
- Land put up for auction must be included in the approved annual land use plan of the district level.
- Land put up for auction has been cleared or has assets attached to the land owned by the State.
- It is necessary to propose a plan for auctioning land use rights approved by a competent State agency.
Conditions for participating in land use rights auction:
- For organizations participating in the auction, they must be eligible to be allocated land and leased land by the State.
- The organization must ensure the conditions of capacity and experience in project development.
- Organizations must comply with the provisions of law on property auctions.
In addition, individuals participating in land use rights auctions must also be eligible to be allocated land or leased land by the State; Individuals must meet the conditions prescribed by law on property auctions.
Speaking to Lao Dong reporter, lawyer Truong Anh Tu (TAT Law Firm) said: “According to Decree No. 71/2024/ND-CP, the starting price of a land plot is determined based on the land price list issued by the Provincial People's Committee. This helps save time, speed up the auction process and create transparency in determining the value of the land plot. However, auction participants should note a few important points:
Prepare complete documents: Auction participants need to submit valid registration documents and deposit as prescribed.
Carefully research information about the land plot: Including planning, current land use status, starting price, and other binding conditions if winning the auction.
Understand the payment process and deadlines: After winning the auction, the buyer must comply with the full payment terms within the specified time limit to avoid losing benefits or incurring penalties".
