National Assembly Delegate of Nghe An Delegation proposes to increase the deposit rate to limit 'auction brokers' and deposit cancellation
(Baonghean.vn) - On the morning of November 28, at the National Assembly House, under the chairmanship of National Assembly Chairman Vuong Dinh Hue, the National Assembly discussed the draft Law amending and supplementing a number of articles of the Law on Property Auction. Vice Chairman of the National Assembly Nguyen Duc Hai chaired the meeting.
Regarding this draft law, the National Assembly Delegation of Nghe An province has 2 delegates participating in the discussion. Particularly related to the provisions on the deposit, the draft law stipulates: "The deposit is agreed upon by the property auction organization and the person owning the auctioned property, but is at least 5% and at most 20% of the starting price of the auctioned property; In the case of auctioning land use rights for land allocation and lease to implement investment projects, the minimum deposit is 10% and at most 20% of the starting price".
Regarding this content, delegate Thai Thi An Chung - Member of the Provincial Party Executive Committee, Deputy Head of the National Assembly Delegation of Nghe An said that to limit the situation of "auction brokers" and limit the situation of abandoning deposits after winning the auction, one of the effective solutions is to increase the deposit rate.
Therefore, the regulation on the deposit rate should be revised, from a minimum of 10% to a maximum of 30%. “Raising the deposit rate will help those who are truly interested in participating in the auction,” said the delegate of Nghe An Delegation.
Also on this content, Mr. Tran Nhat Minh - full-time National Assembly delegate of Nghe An province's National Assembly Delegation agreed with the minimum rate of 5% but suggested that the drafting agency study increasing the maximum rate to 30% or 40%, in order to create initiative for property owners or auction organizations when authorized in determining the starting price for each different type of property.
“Increasing the deposit amount will, in my opinion, be a safety barrier for those who do not need to buy the auctioned property but only register to participate with the purpose of colluding to lower the price for profit. Furthermore, this regulation will minimize the situation of “deposit abandonment” that is quite common today,” said delegate Tran Nhat Minh.
Also related to this draft law, delegate Thai Thi An Chung commented on the contents related to amending regulations on auctioneers, regulations on price steps, the National Asset Auction Portal, and the deadline for receiving bids.
Delegate Tran Nhat Minh also raised opinions on auctions in cases where there is only one person registering to participate in the auction, one person participating in the auction, one bidder and the content about the auctioneer.