The Ministry of Justice is seeking opinions on the draft Law on Property Auction (amended).
This draft Law has supplemented regulations prohibiting participation in the auction of residential land use rights for individuals who win the auction but "abandon the deposit", supplementing regulations to increase the deposit rate in the auction of land use rights to allocate residential land to individuals...
The addition of this regulation is expected to help make auction activities transparent, preventing the situation of taking advantage of auctions for personal gain.
In fact, in recent years, many land auctions have become tools for some speculative groups to manipulate and profit instead of promoting the goal of fair and effective land allocation.
Many investors participate not for the purpose of practical use but only to push up prices, abandon virtual prices or collude to lower prices, creating differences to benefit.
Some cases even push prices very high to create a virtual price level for other projects, but then abandon the deposit, causing land to be abandoned, causing budget losses and market disruption. This is a clear manifestation of taking advantage of legal loopholes and a lack of strong enough sanctions in land auction management today.
The consequence is that a large number of people participate in the auction, but the proportion of participants with real needs is low. Land prices are pushed up not in accordance with reality, many winning auction land plots are then abandoned, distorting the market for profit and causing revenue loss to the State budget. This is partly because the regulations are still loose and lack sufficient deterrent handling measures.
To overcome the situation of participating in auctions for profit, the draft Law supplements regulations that in cases of direct verbal auction or direct voting at the auction session where auction participants have submitted dossiers, valid deposits and attended the auction session, they are considered to have agreed to buy assets at the starting price.
This regulation aims to limit the situation of "brokers", people who do not have a real need to buy but still participate in auctions for profit.
Along with that, the draft Law supplements regulations to increase the deposit rate in land use right auctions to allocate residential land to individuals.
The draft Law has supplemented regulations prohibiting participation in the auction of residential land use rights for individuals who win the auction but abandon the deposit.
Accordingly, the land use right auction winner for cases where the State allocates land, leases land according to the provisions of land law, mineral exploitation rights according to the provisions of mineral and geological law violates the obligation to pay the auction winnings leading to the decision recognizing the auction result being cancelled, depending on the nature and severity of the violation, is prohibited from participating in auctions for that type of property for a period of 6 months to 5 years.
Thus, if the auction winner violates the obligation to pay the auction winning money, leading to the cancellation of the decision recognizing the auction winning result, in addition to handling the deposit, the regulation "banning participation in land use right auctions" as in the draft Law is considered very strict.
Sharing with Lao Dong reporters, real estate expert Nguyen The Diep - Vice Chairman of Hanoi Real Estate Club - said that when facing the risk of being banned from participating in auctions for a certain period of time, individuals will have to carefully consider their financial capacity and real purpose before bidding.
This person believes that, to avoid risks from happening, it is very necessary to supplement regulations to increase deposits and prohibit participation in auctions for depositors.
