DECREE

GUIDELINES FOR LAW ON PROPERTY AUCTION

Pursuant to the Law on Government organization dated June 19, 2015;

Pursuant to the Law on property auction dated November 17, 2016;

At the request of the Minister of Justice;

The Government promulgates a Decree on guidelines for law on property auction,

Chapter I

GENERAL PROVISIONS

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This Decree provides guidelines for the Law on property auction in terms of issuance and revocation of auctioneer cards; online auctions; and registration for operation applied to auction houses established before the effective date of the Law on property auction.

Article 2. Regulated entities

1. This Decree applies to property auction organizations, auctioneers, sellers, property auction councils, the organization whose charter capital is wholly held by the State established by the Government for the purpose of settlement of bad debts incurred by credit institutions (hereinafter referred to as bad debt management organization), property auction authorities, relevant individuals and organizations.

2. A trader or organization other than the property auction organization that establishes an online auction website as prescribed in law on electronic commerce shall not be regulated for the purposes of this Decree.

Chapter II

ISSUANCE AND REVOCATION OF AUCTIONEER CARDS; REGISTRATION FOR OPERATION APPLIED TO AUTION HOUSES ESTABLISHED BEFORE THE EFFECTIVE DATE OF THE LAW ON PROPERTY AUCTION

Section 1. ISSUANCE AND REVOCATION OF AUCTIONEER CARDS

Article 3. Procedures for issuance of auctioneer cards

1. A property auction organization or bad debt management organization shall submit an application for issuance of auctioneer cards held by its auctioneers directly, by post, or in any form deemed appropriate to the Service of Justice in the province where it is headquartered. An application includes:

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b) Certified true copies or copies of auction licenses enclosed with original copies;

c) 1 color photo size 2cm x 3cm (taken not longer than 6 months from the date of submission of photo)

2. Within 5 working days from the date on which the satisfactory application is received as prescribed in Clause 1 of this Article, the Service of Justice shall issue auctioneer cards; if the application is rejected, it shall provide explanation in writing.

Within 3 working days from the date on which the auctioneer cards are issued, the Service of Justice shall post the list of auctioneers on its website, and forward it to the Ministry of Justice.

3. An auctioneer card shall maintain valid only when its holder practices in the organization for which the auctioneer card is applied. The auctioneer is entitled to conduct an actual auction only if he/she is issued with an auctioneer card. The auctioneer has to wear his/her auctioneer card when conducting an auction. The holder of auctioneer card may not work as a notary or bailiff as a part-time job.

4. The template of auctioneer card shall be issued by the Ministry of Justice.

Article 4. Procedures for re-issuance of auctioneer cards

1. If an auctioneer working in the property auction organization or bad debt management organization has his/her auctioneer card lost or damaged, such organization shall submit an application for re-issuance of auctioneer card following the procedures prescribed in Clause 1 Article 3 hereof. An application includes:

a) An application form for re-issuance of auctioneer card;

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2. Within 3 working days from the date on which the application is received, the Service of Justice shall consider issuing the auctioneer card; if the application is rejected, it shall provide explanation in writing.

Article 5. Procedures for revocation of auctioneer cards

Within 3 working days from the date on which an auctioneer has his/her auction license revoked under a decision issued by the Minister of Justice, the Service of Justice which issued his/her auctioneer card based on such auction license shall issue a decision on revocation of the auctioneer card. The decision on revocation of auctioneer card shall be sent to the auctioneer having his/her card revoked, his/her working place, the Ministry of Justice, and post it on the Services of Justice’s website.

The auctioneer card shall be no longer valid from the date on which the corresponding auction license is revoked by the Ministry of Justice.

Section 2. REGISTRATION FOR OPERATION APPLIED TO AUCTION HOUSES ESTABLISHED BEFORE THE EFFECTIVE DATE OF THE LAW ON PROPERTY AUCTION

Article 6. Registration for operation applied to auction houses established before the effective date of the Law on property auction having operation converted

1. If an auction house established before effective date of the Law on property auction wishes to have the whole of its operation converted into an auction house prescribed in Article 23 of the Law on property auction, it shall submit an application for registration directly, by post, or in any form deemed appropriate to the Service of Justice in the province where it is headquartered. The application includes the documents prescribed in Points a, b, and c Clause 1 Article 25 of the Law on property auction.

2. The newly-established auction house which is issued with a certificate of registration by Service of Justice shall inherit all legitimate rights and interests and obligations in property auction from the auction house established before the effective date of the Law on property auction.

3. The newly-established auction house which is issued with a certificate of registration by Service of Justice shall publish its content of certificate of registration as prescribed in Article 28 of the Law on property auction. The aforesaid Service of Justice shall publish content of certificate of registration as prescribed in Article 27 of the Law on property auction.

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1. If an auction house established before effective date of the Law on property auction wishes to keep both operating property auction line of business and conducting other lines of business as prescribed in law on enterprises, it shall establish a new auction house as prescribed in Article 25 of the Law on property auction.

2. The newly-established auction house as prescribed in law on the Law on property auction shall inherit all legitimate rights and interests and obligations in property auction from the auction house established before the effective date of the Law on property auction.

3. After the newly-established auction house is issued with a certificate of registration by Services of Justice, the auction house established before the effective date of the Law on property auction shall terminate the property auction line of business and may not have the phrase “đấu giá tài sản” (property auction) used in its name.

4. The newly-established auction house which is issued with a certificate of registration by Service of Justice shall publish its content of certificate of registration as prescribed in Article 28 of the Law on property auction. The aforesaid Service of Justice shall publish content of certificate of registration as prescribed in Article 27 of the Law on property auction.

Chapter III

ONLINE AUCTION

Article 8. Rules for online auction

1. Comply with law on property auction.

2. Protect user names of and information about bidders and other information as prescribed by law.

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4. Protect rights and legitimate interests of sellers, bidders, and relevant individuals and organizations.

Article 9. Conducting online auctions

1. If an online auction is conducted, the property auction organization, property auction council, or bad debt management organization shall follow the procedures for property auction as prescribed in Chapter III and Chapter IV of the Law on property auction and Chapter III of this Decree.

2. The property auction organization shall use its online auction website or enter into a contract to use the online auction website of another property auction organization so as to conduct an online auction.

If an auction is conducted by the property auction council or bad debt management organization, such organization shall enter into a contract to use the online auction of another property auction organization so as to conduct an online auction.

Auctioneers who are assigned by the property auction organization, property auction council, or bad debt management organization shall take responsibility for conducting an online auction.

3. The property auction organization conducting an online auction shall, apart from the obligation of announcement of property auction as prescribed in Article 57 of the Law on property auction, be obliged to post an announcement on the online auction website according to an agreement entered into with the seller, property auction council, bad debt management organization.

4. The expense associated with the rental of online auction website for the purpose of conducting an online auction shall be included in the property auction expenditure expenses prescribed in Clause 2 Article 66 of the Law on property auction.

5. The online auction website shall be established and operated as prescribed in law on information and communications and law on electronic commerce.

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1. The property auction organization shall post the Regulation on auction on the online auction website.

2. When a bidder registers to bid online, he/she shall be issued with an account, provided with guidelines for using the account, how to bid and necessary information on the online auction website.

3. Bidders shall use their accounts and make their bids according to types of auctions, opening time and closing time, bid increments that are announced.

At the closing of the auction, the auctioneer who is assigned by the property auction organization, property auction council, or bad debt management organization to conduct the online auction shall determine the successful bidder as follows:

a) In case of ascending price auction, the successful bidder is the person who makes the highest bid recorded by the online auction system at the closing time;

b) In case of descending price auction, the successful bidder is the first person who accepts the starting price or decreased price recorded by the online auction system.

5. As soon as practicable after determining the successful bidder prescribed in Clause 4 of this Article, the auctioneer who is assigned by the property auction organization, property auction council, or bad debt management organization to conduct the online auction shall announce the successful bidder on the online auction system.

6. As soon as practicable after announcing the successful bidder on the online auction system, the results of online auction shall be published on the online auction system and sent to emails of bidders who registered with the property auction organization, property auction council, or bad debt management organization.

Article 11. Notification of online auction results

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2. The notification shall specify information about the property on auction, opening time and closing time, the time at which the online auction system recognizes the hammer price.

Article 12. Online auction reports

An online auction report shall specify the opening time, closing time, number of bidders, winning bid, and successful bidder. The auction progress recorded by the online auction system shall be extracted with certification of the property auction organization operating the online auction website and enclosed with the auction report.

The auction report shall be made at the closing time and bear signatures of the auctioneer assigned by the property auction organization, property auction council, or bad debt management organization, report maker, and the seller. If the auction is conducted by the property auction council, the auction report shall also bear the signature of the Chairman of council apart from the aforementioned information.

The auction report shall be sent to the successful bidder for being signed. In case of using digital signature in the auction report, law on ecommerce transactions shall apply.

Article 13. Requirements for holding online auctions

1. If a property auction organization wishes to establish an online auction website as prescribed in the Law on property auction, it must satisfy the following requirements:

a) Have infrastructure for online auction;

b) Have technicians in charge of technical system of online auction website;

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2. The infrastructure for online auction shall have at least functions below:

a) Ensure the safety and confidentiality of the account, the integrity of data, bidders making bids, bid placed, and information about bidders;

b) Record and save all bid placed in the auction, withdrawal of bid placed and necessary information about the progress of the online auction;

c) Display bid placed by bidders publicly and truthfully; extract history of bid offering in the online auction system;

dd) Make the highest bid recorded by the online auction system visible to the bidders every 30 seconds.

Article 14. Assessment of requirements for conducting online auction

1. The property auction organization shall submit a project for online auction to the Service of Justice of province where it is headquartered. The project shall contain terms of the contents prescribed in Clause 13 hereof.

2. The Director of Services of Justice shall establish an assessment council to assess if requirements for online auction are satisfied and issue the regulations on council’s operation; the council is composed of a representative acting as Chairman, representative(s) of relevant agencies and organizations, and qualified experts in the fields of auction and information technology.

3. The assessment council shall assess if the requirements below are satisfied:

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b) Infrastructure, facilities and technicians operating the online auction website;

c) The safety and confidentiality of online auction system;

d) Display, recording, retention, and extract of online auction system;

dd) Plans and technical solutions for the operation of infrastructure;

e) Feasibility and efficiency in initiating online auction system in reality.

Article 15. Approval for property auction organizations eligible for conducting online auctions

1. Within 90 days from the date on which a project for online auction submitted by a property auction organization is received, the Director of Services of Justice shall consider approving that the property auction organization is eligible for online auction.

2. A list of property auction organizations having eligible online auction websites shall be published on the Service of Justice's website and forwarded to the Ministry of Justice; then Ministry of Justice shall then post in on the property auction specialized website.

Article 16. Responsibilities of property auction organizations operating online auction websites

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1. Operate the online auction website; take responsibility for online auction results provided;

2. Provide infrastructure and operate the online auction website as prescribed in the Law on property auction, this Decree and relevant law provisions;

3. In case of any technical defects that prevent the auction from beginning, the property auction organization shall suspend the online auction and give a timely notice to the seller, who will decide another auction date and time; in case of any technical defects that prevent bidders from making bids after the auction has begun, the property auction organization shall cancel the online auction and give a notice to the seller, who will decide another auction date and time;

4. Protect information about bidders and their accounts, unless otherwise prescribed by law;

5. Compensate for damage at its faults during the operation of website as prescribed by law.

6. Provide guidelines for registration of accounts, using accounts, making bids, types of auctions, opening time and closing time, bid increments, and auction results on the online auction website.

Chapter IV

IMPLEMENTATION

Article. Transitional provisions

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2. A certificate of training in auction which is issued as prescribed in the Government's Decree No. 17/2010/ND-CP dated March 4, 2010 on property auction shall be considered valid equivalent to a diploma of vocational training in auction as prescribed in the Law on property auction.

Within 1 year from the effective date of the Law on property auction, if a holder of certificate of training in auction prescribed in the Government's Decree No. 17/2010/ND-CP dated March 4, 2010 on property auction applies for issuance of auction license, he/she is exempt from auction practice and tests thereof as prescribed in Article 13 of the Law on property auction.

3. If a consignor agreement between the consignor (seller) and auction house is signed before the effective date of the Law on property auction and public notices are made but the auction has been not conducted, such auction shall be conducted as prescribed in the Government's Decree No. 17/2010/ND-CP dated March 4, 2010 on property auction.

4. Within 1 year from the effective date of the Law on property auction, property auction organizations having auctioneers issued with auctioneer cards as prescribed in the Government's Decree No. 17/2010/ND-CP dated March 4, 2010 on property auction shall propose the issuance of auctioneer cards as prescribed in this Decree to the Service of Justice.

An auctioneer card issued by the property auction organization shall expire from the date on which the auctioneer is issued with another auctioneer card by the Service of Justice as prescribed in this Decree.

5. While waiting for the property auction specialized website to be established, the property auction organization, property auction council, or bad debt management organization shall publish information prescribed in Clause 1 Article 57 of the Law on property auction in a central or provincial printed or visual newspaper where the property on auction exists.

6. Within 1 year from the effective date of the Law on property auction, the Service of Justice shall propose the President of People’s Committee of province/central-affiliated city to rename the “Trung tâm dịch vụ bán đấu giá tài sản” established before July 1, 2017 to “Trung tâm dịch vụ đấu giá tài sản”.

Until such change of name happens, the property auction center shall conduct property auctions as prescribed in the Law on property auction.

Article 18. Entry in force

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Article 19. Implementation

Ministers, heads of ministerial-level agencies, heads of government-attached agencies and chairpersons of provincial-level People's Committees shall implement this Decree./.

ON BEHALF OF THE GOVERNMENT
PRIME MINISTER




Nguyen Xuan Phuc