Auction of land use rights is a common form for the State to allocate or lease land. At the same time, the auction of land use rights is also one of the most important sources of income for many localities.
1. 8 cases of having to auction land use rights
According to Clause 1, Article 118 of the 2013 Land Law, the State allocates land with collection of use fees or leases land in the form of the auction of land use rights in the following cases:
- Allocate residential land in urban areas and rural areas to households and individuals.
- Invest in building houses for sale or rent or lease-purchase.
- Invest in building infrastructure for transfer or lease.
- Use the land fund to create capital for infrastructure construction investment.
- Use of land for non-agricultural production establishments; commercial and service land.
- To lease land belonging to the agricultural land fund to be used for public purposes (land 5%) for agricultural production, forestry, aquaculture, and salt production.
- Allocating or leasing land for land recovered by the State due to the rearrangement and handling of working offices, non-business establishments, production, and business establishments whose properties are attached to the land. owned by the State.
- Land allocation or land lease for cases of reduction of land use levy or land rent.
Note: In case the land is put up for auction but there are no participants or only 01 person registers to participate in the auction or the auction is unsuccessful at least twice, the State will allocate or lease the land without having to bid.
2. 9 cases of not auctioning land use rights
Clause 2, Article 118 of the 2013 Land Law stipulates that when the State allocates or leases land in the following cases, no auction of land use rights is allowed:
- The State allocates land without collection of user fees.
- Use of land exempted from use levy and land rent as prescribed in Article 110 of the 2013 Land Law, such as Agricultural production land of ethnic minority households and individuals; land used for production and business purposes in areas eligible for investment incentives or investment incentive sectors, etc.
- Land use specified in Point b, g Clause 1 and Clause 2, Article 56 of the Land Law such as Land for the construction of the headquarters of foreign organizations with diplomatic functions; households and individuals wishing to continue using agricultural land exceed the limit of agricultural land allocation,...
- Use of land for mineral purposes.
- Use of land for the implementation of investment projects to build social housing, civil service houses, resettlement houses.
- Assign residential land to cadres, civil servants, and civil servants when transferring places of work according to the decision of the competent authority.
- Assign residential land to households and individuals residing in communes without residential land and not yet assigned residential land by the State.
- Assign residential land to households and individuals residing in towns in areas with difficult socio-economic conditions, especially difficult without residential land and not yet assigned residential land by the State.
Other cases are decided by the Prime Minister.
3. Procedures for organizing the auction of land use rights
Note: This procedure is done by the auction agency.
According to Joint Circular No. 14/2015/TTLT-BTNMT-BTP, the procedure for organizing the auction of land use rights include the following steps:
Step 1: Set up an auction plan
Step 2: Prepare bidding documents
Step 3: Decide on auction
Step 4: Determine and approve the starting price of the land parcel participating in the auction
Step 5: Select and sign a contract to hire a unit to perform the land auction
Step 6: Approve the auction result of land use rights
Step 7: Pay land use levy and land rent after the decision on recognition of winning results of land use right auction is issued.
4. How do people participate in land auctions?
Step 1: View auction information
Point b, Clause 1, Article 35 of the 2016 Law on Property Auction stipulates that the auction organization must post up the asset auction at least 15 days before the auction at the following locations:
- At the auction organization's headquarters.
- At the place where the land use right auction is held.
- At the People's Committee of the commune, ward, and township where the land is located.
Thus, people carefully watch the information about the land auction at one of the above locations.
Step 2: Register to participate in the auction
According to Clause 1, Article 38 of the Law on Property Auction 2016, people register to participate in land auctions through the submission of valid land auction dossiers and pre-booked amounts to auction organizations, specifically:
- Organize auctions to auction and receive dossiers during office hours, continuously from the date of listing the auction until 02 days before the opening of the auction.
Therefore, people contact the auction organization to buy and file.
- Bide participants must pay a reservation. The pre-booked amount is agreed upon by the two parties but is at least 5% and a maximum of 20% of the starting price of the land use right.
Deposit pre-booked money into the private payment account of the auction organization opened at a commercial bank/foreign bank branch in Vietnam.
In case the pre-booked amount is less than VND 05 million, the auction participant may submit it directly to the auction organization.
Auction participants and the auction organization of land use rights can agree to replace the deposit with a bank guarantee.
Step 3: Participate in the auction
5. Procedures for issuing Red Book when winning the auction
According to Article 14 of the Joint Circular No. 14/2015/TTLT-BTNMT-BTP, the procedures for granting Certificates (Red Book, Pink Book) for land upon winning the auction is as follows:
Step 1: Submit the proof of full payment of the auction winnings
Step 2: Receiving and handling
Upon receipt of the receipt of full payment of the auction winning amount, the natural resources and environment agency shall submit it to the competent People's Committee for issuance of the Certificate; sign land lease contract in case of land lease.
Step 3: Handing over the Certificate and handing over the land on the field
Within no more than 05 working days from the date the competent People's Committee issues the Certificate, the natural resources, and environment agency shall perform the following tasks:
- To assume the prime responsibility for, and coordinate with the unit organizing the auction, and the People's Committee of the commune, ward, or township where the auctioned land is located, in organizing the handover of the land on the field and awarding the Certificate.
- Directing the updating and editing of cadastral databases and records.
The above are regulations on the auction of land use rights (also known as a land auction).
Collected from source
Author: Khac Niem
