Conditions for organizing auctions of land use rights
1. Conditions for organizing the auction of land use rights
Based on the provisions of Clause 1, Article 119 of the 2013 Land Law, the auction of land use rights must comply with the following conditions:
- Conditions for organizing an auction of land use rights when the State allocates or leases land:
+ There is an annual land use plan at the district level approved by a competent state agency: Before organizing an auction of land use rights, the district must have an annual land use plan approved by the state agency. competent state for approval. This plan identifies land use goals and allocates land types to different uses.
+ Land that has been cleared, land with assets attached to the land and assets owned by the state: Before organizing the auction, the land needs to be cleared, and at the same time this land must have assets attached to it and that property is owned by the state.
+ Have a land use rights auction plan approved by a competent state agency: Before organizing the auction, there needs to be a land use rights auction plan approved by a competent state agency. This plan includes information about land area, land use purpose, land use term, auction method, project implementation progress and other related conditions.
- Organizations and individuals participating in the auction of land use rights must meet the following conditions:
+ Being subject to land allocation or lease by the State according to the provisions of Article 55 and Article 56 of this Law: Organizations or individuals who want to participate in the auction of land use rights must be subject to land allocation by the State. land lease according to the provisions of Article 55 and Article 56 of the Land Law 2013. These regulations relate to the determination of people to whom the State allocates land, leases land, and special priority cases.
+ Must ensure the conditions for implementing investment projects as prescribed in Article 58 of this Law in cases of land allocation or land lease to implement investment projects: Organizations or individuals who want to participate in bidding The price of land use rights must ensure the conditions for implementing investment projects as prescribed in Article 58 of the 2013 Land Law.
Organizations and individuals participating in the auction of land use rights must meet all of the above conditions to be granted land use rights through the auction process. This regulation is intended to ensure that new land users have enough ability and conditions to carry out the corresponding project and utilize the land effectively.
2. What are the principles for auctioning land use rights?
According to the provisions of Article 117 of the Land Law 2013, principles for auctioning land use rights are prescribed as follows:
- Land use rights auctions are conducted publicly, continuously, objectively, honestly and equally, protecting the legitimate rights and interests of participating parties.
- The auction of land use rights must comply with the order and procedures according to the provisions of the law on land and the law on asset auctions.
According to the above regulations, the auction of land use rights must meet the principles of openness, continuity, objectivity, honesty, equality, and protection of the legitimate rights and interests of participating parties. In addition, the auction of land use rights must also comply with the correct order and procedures prescribed by land law and asset auction law. This ensures the auction process takes place according to a legal process and ensures the rights and interests of relevant parties.
3. Authority to review auction registration documents
According to the provisions of Clause 4, Article 33 and Clause 1, Article 38 of the 2016 Law on Asset Auctions, individuals and organizations that want to participate in the auction must comply with the registration process by submitting valid auction participation documents and deposit for the asset auction organization in accordance with the provisions of the Law and other relevant legal provisions. If the law stipulates conditions for participating in an auction, auction participants must meet those conditions. The rights and obligations of the person having the auctioned assets and the asset auction organization are implemented through the asset auction service contract, complying with the provisions of the Asset Auction Law, civil law and other regulations. other relevant regulations.
According to the above regulations, receiving and evaluating auction participation documents, including auction participation conditions and standards, is the responsibility of the asset auction organization. The Law on Asset Auctions does not prohibit people with auctioned assets from participating in evaluating auction participation documents.
However, in reality, some types of auctioned assets have specific characteristics that require the financial, professional and technical capacity of businesses that want to participate in the auction, such as land use rights to carry out projects. investment projects, mineral exploitation rights, frequencies... To ensure a strict and complete dossier evaluation process, asset owners often reach an agreement with the asset auction organization in the auction service contract. asset price to establish a council or team to appraise asset auction documents with the participation of relevant agencies, organizations and experts.
The participation of people with such assets is necessary to ensure the selection of the right business that is eligible to participate in the auction.
However, to avoid collusion and competitive price reduction, the appraisal of the asset owner's documents must be carried out on the basis of ensuring confidentiality of information about auction participants. In this case, the asset auction organization and the asset owner are both responsible for information security.
4. Conditions for organizing participation in land use rights auctions
Accordingly, Decree No. 10/2023/ND-CP supplements Article 17b of Decree No. 43/2014/ND-CP dated May 15, 2014 regulating auction of land use rights when the State allocates land with payment of money. land use, land lease. Organizations participating in the auction of land use rights must meet the following conditions:
- In case of auction of a plot of land or a project consisting of one or more plots of land in which two or more companies have cross-ownership of each other according to the provisions of law on enterprises, only one company may participate in the auction. land use rights above. This is to avoid companies with cross-ownership participating in the auction and create fairness and transparency in the auction process.
- Subjects participating in the auction of land use rights must meet the conditions specified in Clause 3, Article 58 of the Land Law. These conditions may be related to location, area, land use purpose, financial capacity and experience in the field of auction land use.
- Auction participants must pay a deposit equal to 20% of the total value of the land plot or land area calculated according to the starting price to auction land use rights. This deposit ensures the seriousness and commitment of the auction participant.
- Subjects participating in the auction are not prohibited from participating in the auction according to the provisions of law. Subjects prohibited from participating in the auction may include people or organizations that violate the law, are disciplined or have serious violations in the field of land.
- Auction participants need to meet the conditions prescribed by the law on housing and the law on real estate business in the case of auctioning land use rights to carry out housing projects or business projects. Other real estate businesses. This ensures that the auction participants are competent and meet regulations related to the development and management of housing projects or real estate business projects.