Responding to the petition of Nam Dan district voters about the shortcomings in land use rights auction

In addition, voters said that the deadline for paying land use fees was too long (3 months), leading to some individuals who won the auction to resell, and if they could not sell, they would forfeit their deposit. Voters requested the Provincial People's Committee to direct the study of solutions to overcome this problem.

Reply:

1. Regarding determining the starting price for land use rights auction:

Prescribed in Decree No. 71/2024/ND-CP dated June 27, 2024 of the Government regulating land prices, effective from the effective date of Land Law No. 31/2024/QH15 (August 1, 2024), except for the case prescribed in Clause 2, Article 9 of this Decree.

Propose the Chairman of Nam Dan District People's Committee to direct relevant departments and branches to advise on determining specific land prices for auction to ensure proper procedures and time as prescribed.

2. Selecting and signing a contract for land use rights auction services still takes a lot of time.:

The selection of an auction organization and the signing of an auction service contract are carried out in accordance with the provisions of the Law on Property Auction 2016 and Circular No. 02/2022/TT-BTP dated February 8, 2022 of the Minister of Justice guiding the selection of a property auction organization.

Thus, the selection must be carried out in accordance with the legal procedures on asset auctions. The selection results are the basis for the District People's Committee to sign the auction service contract.

However, to avoid prolonging the selection process, it is recommended that the District People's Committee strictly follow the prescribed time and assign specific responsibilities to the staff department in this work.

3. AboutvSupervision of the auction process from the signing of the service contract until the auction ends:

At Point b, Clause 9, Article 26 of Decision No. 12/2018/QD-UBND dated February 3, 2018, amended and supplemented by Clause 9, Article 1 of Decision No. 07/2021/QD-UBND dated April 23, 2021 of the People's Committee of Nghe An province, regulating the auction of land use rights to allocate land with land use fees or lease land in Nghe An province, it is stipulated that the establishment of a Supervisory Team and the responsibility for supervision are as follows:

“Establish a Land Use Rights Auction Supervision Team, consisting of: District People's Committee Leader as Team Leader, Head of the Justice Department as Deputy Team Leader; members are representatives of the following units: Department of Natural Resources and Environment: Land Fund Development Center (if any); Department of Finance and Planning, leaders of the District Police".

Supervision is the responsibility of the People's Committee of Nam Dan district. We request the Chairman of the People's Committee of Nam Dan district to direct the strict implementation of regulations on supervision of auction activities in the locality, avoiding the form as proposed above.

4. Aboutt% deposit rate:

Clause 1, Article 14 of Decision No. 12/2018/QD-UBND, amended and supplemented by Clause 3, Article 1 of Decision No. 07/2021/QD-UBND, stipulates:

“1. In a planning area where there are many plots of land with different starting prices put up for auction at the same time, the unit organizing the auction of land use rights shall stipulate a maximum of two deposit levels for a planning area, specifically:

a) The minimum deposit is five percent and the maximum is ten percent of the starting price of the rural residential land plot;

b) The minimum deposit is fifteen percent and the maximum is twenty percent of the starting price of the urban residential land plot.;”

The above starting price regulation is intended to create conditions for many people to register for the auction, however, it is not enough to deter those who participate in the auction without the intention of actually buying the property, winning the auction and then finding someone to transfer it back, if they cannot find a buyer, they will be willing to forfeit the deposit.

The deadline for paying land use fees for auctioned land is implemented according to the provisions of Article 18 of Decree No. 126/2020/ND-CP of the Government dated October 19, 2020 detailing a number of articles of the Law on Tax Administration and Article 19 of Decision No. 12/2018/QD-UBND amended and supplemented by Clause 6, Article 1 of Decision No. 07/2021/QD-UBND of Nghe An Provincial People's Committee.

The voters' recommendation that the deadline for paying land use fees is too long has a practical basis, some individuals may take advantage of auction activities for personal gain, affecting local budget collection.

5. Solution:

- On July 29, 2024, the Department of Justice issued Official Dispatch No. 1385/STP-BTTP on the implementation of legal regulations on asset auctions, in which it requested departments, branches, People's Committees of districts, cities and towns to implement regulations on selecting auction organizations and supervising asset auction activities.

- On August 2, 2024, the Department of Justice held a conference to review auction activities in the first 6 months of the year, tasks and solutions for the last 6 months of 2024; at the conference, the shortcomings and limitations were pointed out, and at the same time, strictly implemented legal regulations on asset auctions.

- Currently, the Department of Justice is presiding over the review and drafting of a Decision to replace Decision No. 12/2018/QD-UBND; Decision No. 07/2021/QD-UBND of the Provincial People's Committee regulating the auction of land use rights to allocate land with land use fees or lease land in Nghe An province, on the basis of the amended and supplemented Law on Property Auction passed by the 15th National Assembly, 7th session on June 27, 2024, effective from January 1, 2025 and related legal provisions.

Gia Huy