Modify criteria for selecting property auction organizations

The Ministry of Justice is drafting a Circular regulating auction training and providing guidance on selecting organizations to practice property auctions.

The Ministry of Justice said that on June 27, 2024, the 15th National Assembly at its 7th Session passed the Law amending and supplementing a number of articles of the Law on Property Auction (effective from January 1, 2025), in which the Ministry of Justice was assigned to detail 2 contents including: (i) On the selection of property auction organizations (Clause 36, Article 1) and (ii) Regulations on the program, content and organization of professional training for auctioneers (Clause 44, Article 1).

Pursuant to the provisions of the Law on Property Auction, the Minister of Justice issued Circular No. 06/2017/TT-BTP dated May 16, 2017 regulating the framework program of auction training courses, auction training facilities, internship and testing of auction practice internship results and forms in the field of property auction.

In addition, the Minister of Justice also issued Circular No. 02/2022/TT-BTP dated February 8, 2022 of the Minister of Justice guiding the selection of property auction organizations.

The Law amending and supplementing a number of articles of the Law on Property Auction has removed the condition of working time in the trained field for 03 years or more to be eligible to participate in the auction training course; removed the regulation on exemption from property auction training; some forms are no longer suitable for practical requirements. In addition, through the implementation of Circular No. 02/2022/TT-BTP, difficulties and problems have been revealed.

Therefore, in order to effectively, promptly and synchronously implement the Law amending and supplementing a number of articles of the Law on Property Auction and overcome some difficulties and problems in the process of implementing Circular No. 06/2017/TT-BTP and Circular No. 02/2022/TT-BTP, the Ministry of Justice has drafted a Circular regulating the framework program of the auction training course, auction training facilities; internship and testing of auction practice internship results; program, content and organization of training on expertise and profession of auctioneers; instructions on selecting property auction organizations; forms in the field of property auction are necessary.

Regarding the auction training facility and the framework program of the auction training course, the draft Circular basically inherits the provisions of Circular No. 06/2017/TT-BTP, which stipulates that the auction training facility is the Judicial Academy under the Ministry of Justice. The framework program for auction training is chaired by the Judicial Academy, in coordination with the Department of Judicial Support, and submitted to the Minister of Justice for promulgation.

The Ministry of Justice said that, based on research on regulations on professional training in the field of lawyers and notaries, the draft Circular stipulates the content of professional training for auctioneers, including one or several contents: Code of ethics for auctioneers; updating and supplementing legal knowledge on property auctions and other relevant legal regulations; auction practice skills; skills to solve problems arising in the auction practice process; skills to manage, organize and operate auction practice organizations.

Organizations implementing professional training include: Judicial Academy, Department of Judicial Support and professional social organizations of auctioneers.

The minimum time for auctioneers to participate in professional training is 1 working day/year (8 hours/year).

The draft Circular stipulates cases that are recognized as having fulfilled the obligation to participate in professional training in that year, such as having research articles on property auction law and laws related to property auction published in domestic or foreign specialized law journals; writing or participating in writing books and textbooks on property auction that have been published; participating in teaching about property auction at the Judicial Academy...

Amending and supplementing criteria on capacity, experience and reputation of asset auction organizations

Regarding the guidance on selecting an organization to practice property auctions, the draft Circular is built on the basis of inheriting the provisions of Circular No. 02/2022/TT-BTP which are still effective in practice, and at the same time amending and supplementing a number of provisions to comply with the Law on amending and supplementing a number of articles of the Law on Property Auctions, overcoming difficulties, obstacles, and limitations arising. Some main contents of amendments and supplements are specifically as follows:

Regarding the assessment of criteria for selecting property auction organizations (Article 33), the draft Circular amends and supplements Point a and Point b, Clause 5, Article 5 of Circular No. 02/2022/TT-BTP in the direction of narrowing down the violations that are deducted points when auction organizations submit their application for selection. Accordingly, only select acts directly related to the capacity, experience, integrity and professional ethics of property auction organizations and auctioneers in cases of intentionality and seriousness in professional activities, such as announcing the wrong auction winner, collusion, price suppression, etc. to enhance the responsibility of property auction organizations in their professional activities.

Regarding the responsibility of the property auction organization (Article 36) and the tasks of the Department of Justice of the provinces and centrally-run cities (Article 37) , to resolve the situation where property owners have difficulty in checking and verifying the accuracy of information in the registration dossier for participation in the selection declared by the property auction organization, the draft Circular has added regulations on the responsibility of the property auction organization (Clause 3, Article 36), including being responsible for the completeness and accuracy of information in the registration dossier for participation in the selection and sending to the Department of Justice where the organization is headquartered a report according to the form issued with this Circular on the organization and activities of the property auction annually.

At the same time, the draft Circular supplements regulations on the responsibility of the Department of Justice of the province or centrally-run city to post the above report on the National Property Auction Portal (Point e, Clause 2, Article 37).

Based on the Report on the organization and property auction activities of the property auction organization that is publicly posted, property owners can easily access, exploit, and look up, serving the purpose of scoring and selecting the property auction organization.

Regarding the Appendix "Score table of criteria for selecting property auction organizations", based on the provisions of the Law amending and supplementing a number of articles of the Law on Property Auction, the Appendix attached to the draft Circular has abolished the criterion "Auction service fees, appropriate property auction costs"; amended and supplemented a number of specific component criteria in the direction of: (i) Promoting effective auction plans, applying information technology to conduct auctions and supplementing criteria on plans to supervise the organization of auctions; (ii) amending the criteria on stable headquarters, clear address with contact information (phone number, fax, email address...) to be clearer and more feasible, limiting the situation of auction organizations renting headquarters without a clear address; (iii) Amend and supplement criteria on capacity, experience and reputation of asset auction organizations to ensure fairness and transparency, including focusing on the experience, capacity and reputation of individual auctioneers conducting auctions.

Please read the full draft and give your comments here.

Source: https://thoibaonganhang.vn/sua-tieu-chi-lua-chon-to-chuc-dau-gia-tai-san-157130.html