Thông tư liên tịch 14/2015/TTLT-BTNMT-BTP

JOINT CIRCULAR

PROMULGATING AUCTIONS OF LAND USE RIGHTS FOR ALLOCATION OF LEVIED LAND OR LAND LEASE

Pursuant to the Law on land dated November 29, 2013;

Pursuant to Decree No. 43/2014/ND-CP dated May 15, 2014 of the Government providing guidance on the Law on land;

Pursuant to Decree No. 44/2014/ND-CP dated May 15, 2014 of the Government on land prices;

Pursuant to Decree No. 17/2010/ND-CP dated March 4, 2010 of the Government on property auction;

Pursuant to Decree No. 21/2013/ND-CP dated March 4, 2013 of the Government defining the functions, tasks, entitlements and organizational structure of the Ministry of Natural Resources and Environment;

Pursuant to Decree No. 22/2013/ND-CP dated March 13, 2013 of the Government defining the functions, tasks, entitlements and organizational structure of the Ministry of Justice;

The Minister of Natural Resources and Environment and the Minister of Justice issue a Joint Circular on auctions of land use rights for allocation of levied land or land lease,

Chapter I

GENERAL PROVISIONS

Article 1. Scope

This Circular deals with auctions of land use rights (hereinafter referred to as auction) for allocation of levied land or land lease.

Article 2. Regulated entities

Authorities in charge of land, property auction, collection of land levies and land rents; auction authorities, auctioneering organizations, units and other organizations or individuals involved in auctions of land use rights.

Article 3. Interpretation of terms

For the purposes of this Circular, these terms below shall be construed as follows:

1. Auction authority means a land development organization or an agency/organization which is given competent to conduct auctions of land use rights by competent People’s Committees.

2. Auctioneering organization means an organization competent to conduct property auction as prescribed in law on land, law on property auction and relevant regulations or an auctioneering council competent to conduct property auction which is established by competent People’s Committee in special cases.

Article 4. Land fund used for auction of land use rights

The land fund used for auction includes:

1. Land which State recovers for socio-economic development, national and public interests as prescribed in Article 62 of the Law on land; recovers due to violations against law on land as prescribed in Clause 1 Article 64 of the Law on land; recovers due to termination of land use or voluntary return of land as prescribed in Point a, b, c and d Clause 1 Article 65 of the Law on land;

2. Land which the State recovers for changes in head offices, non-business entities, business entities whose property on land belongs to the State;

3. Land which be managed by People’s Committees of communes, wards and towns or land development organizations but has not been allocated or leased as prescribed;

4. Land which be allocated or leased to organizations prescribed in Point b and Point c Clause 1 Article 8 of the Law on land by competent agencies.

Article 5. Auctioneering council

1. An auctioneering council shall be established to conduct the land use right auction in the following special cases:

a) Allocate and lease land plots to high-value projects with value of VND 1,000 billion or more determined according to bracket of land prices with respect to central-affiliated cities; or VND 300 billion or more with respect to mountainous provinces; or VND 500 billion with respect to remaining provinces;

b) Allocate and lease land plots to organizations, households or individuals to carry out investment projects or allocate residential land plots to households or individuals in communes of mountainous administrative divisions which are 60 km or more in distance from the central province and the district having no competent auctioneering organization as prescribed.

2. The People’s Committees competent to allocate or lease land as prescribed in the Law on land shall issue decisions on establishment of auctioneering councils as prescribed in Clause 1 of this Article for each specific case.

3. Composition of auctioneering council prescribed in Clause 1 of this Article comprises the representative of Head of the People’s Committee competent to allocate or lease land or authorized person as prescribed being the President; representatives of natural resource and environment authority, justice, finance and construction at the same administrative level and other relevant agencies and organizations being members.

Chapter II

PROCEDURES FOR HOLDING AUCTION OF LAND USE RIGHTS

Article 6. Making plan for auction of land use rights

1. According to approved annual land-use planning of districts and proposals of units in terms of auction of existing land fund, each Service of Natural Resources and Environment or each Committee division of Natural Resources and Environment shall send reports to the People’s Committees at the same administrative level. The People’s Committee shall direct the agency in charge of land fund management prescribed in Article 4 of this Circular to make plans for auction of land use rights for approval.

2. Each plan for an auction of land use rights shall contain:

a) A list of types of land, location, area, infrastructure, and property on auctioned land plots (if any);

b) Purposes, forms (land allocation or land lease), land use terms of auctioned land plots;

c) Expected time for auction of land plots;

d) Participants/bidders and conditions for participating the auction; participation fees and deposits;

dd) Auction method;

e) Funding for auction expenses;

g) Expected collecting amount and proposal for using receipt from the auction;

h) Method for selecting an auctioneering organization (competitive or non-competitive bidding) or proposal for establishment of an auctioneering council (if accepted as prescribed);

i) Proposal for auction authority.

Article 7. Preparing documents on auction

1. According to the approved plan for auction, the auction authority shall prepare documents on auctioned land plots and then send them to natural resources and environment authority for assessment. The natural resources and environment authority shall submit them to the competent People’s Committee for decision.

2. Documents on auctioned land plots include:

a) A statement and a draft decision on auction;

b) Relevant documents on current conditions of management and use of the auctioned land plots and infrastructure and property on the auctioned land plots (if any) issued by competent agencies;

c) Information about land-use zoning and detailed construction planning related to the auctioned land plots that is approved by competent agencies;

d) Copies of cadastral map or cadastral measurement map of the auctioned land plots (in case of no cadastral map);

dd) Name and address of auction authority

Article 8. Decision on auction

1. According to the documents on auctioned land plots prepared by the auction authority and assessment of the natural resources and environment, the competent People’s Committee shall decide the auction.

2. The decision on auction shall be made in writing and contain the following contents:

a) Legal basis for decision;

b) List, location, area, infrastructure, property on auctioned land plots (if any), purposes, method and land use terms of the auctioned land plots.

c) Information about land-use zoning and detailed construction planning approved by the competent agency and other regulations on management and use of the auctioned land plots;

d) Name and address of the auctioned authority.

Article 9. Determining and approving starting prices of auctioned land plots

1. According to the decision on auction, the Service of Natural Resources and Environment shall determine starting prices of the auctioned land plots (including land price, infrastructure, property on land (if any)) as prescribed and submit the People’s Committee of central-affiliated city or province (hereinafter referred to as People's Committee of province) for approval.

2. Documents on approval for starting price of an auctioned land plot include:

a) A statement of plan for starting price of the auctioned land plot, price of infrastructure and property on land (if any);

b) A draft plan for starting price;

c) A description of formulating plan for starting price;

b) An assessment of plan for starting price.

3. According to documents submitted by the Service of Natural Resources and Environment, the People’s Committee of province shall approve the starting price of the auctioned land plot. The approved starting price of auctioned land plot shall be the basis for the auction.

Article 10. Selecting and signing contract for hiring auctioneering organization

1. According to the method for selecting auctioneering organization mentioned in the approved plan for auction; auction authority shall select and sign contract for hiring auctioneering organization as prescribed.

2. The competitive bidding for selecting auctioneering organization shall be executed according to the approved plan. The auction authority shall request the competent People’s Committee to decide establishment of a contract consulting group intended to prepare and evaluate bidding documents; announce bidding documents by means of mass media at least 2 times; evaluate the bid according to principles of objectives, truthfulness and determine successful bidder according to scale and criteria prescribed in law on bidding and regulations of the local government (if any).

According to competitive bidding, in case of the deadline for invitation for bid, if only one bidder register the bid, auction authority shall report natural resources and environment and the competent People’s Committee. The competence People’s Committee shall conclude a contract with an auctioneering organization as prescribed or re-organize the competitive bidding to select the auctioneering organization as prescribed.

3. A contract for hiring auctioneering organization shall contain the following contents:

a) Name and address of the auction authority and the auctioneering organization;

b) Location and area of the auctioned land plot (enclosed appendix in case of multiple land plots);

c) The starting price;

d) Time and location of the auction;

dd) Bidders and conditions for participation in the auction according to the approved plan;

e) Auction method according to the approved plan;

g) Auction registration fees and deposits according to the approved plan;

h) Method for collecting and managing auction registration fees and deposits; method and settlement of the auction expenses;

i) Deadline, location and method for transferring documents and report on auction results;

k) Rights and obligations of contracting parties.

4. The auction authority may sign a contract for hiring auctioneering organization if there is a plan for selecting specific auctioneering organization in the plan for auction or the natural resources and environment proposes assigning an auctioneering organization as prescribed in Clause 2 of this Article.

Article 11. Monitoring organization of auction

1. The auctioneering organization shall hold the auction in conformity with procedures prescribed in law on property auction and detailed contents specified in the contract for hiring auctioneering organization.

2. The auction authority shall assign its representative to participate and monitor the auction. Depending on case-by-case basis, the auction authority and the auctioneering organization shall invite representatives of natural resources and environment authority, justice authority, finance authority, and local government where the auctioned land plot is located and representative of other relevant organizations or individuals to participate and monitor the auction.

Article 12. Approving auction results

1. Within 05 working days, from the date on which the documents and report on auction results are transferred from the auctioneering organization, the auction authority shall send documents to the competent People’s Committee. The competent People’s Committee shall issue the recognition of successful bid.

2. Documents on request for recognition of successful bid include:

a) A draft recognition of successful bid;

b) Decision on auction issued by competent People’s Committee;

c) Documents on auctioned land plot(s);

d) Contract for hiring auctioneering organization;

dd) Report on organization of auction and report on successful bid.

3. The competent People’s Committee shall promulgate the recognition of successful bid and send it to the natural resources and environment authority, auction authority, tax authority and the successful bidder. A draft recognition of successful bid shall contain:

a) Legal basis for decision;

b) Location, area, purposes, method, land use term, infrastructure, and property on auctioned land plot(s) (if any);

c) Name and address of the successful bidder;

d) Amount of money equivalent to the successful bid and infrastructure, property on land (if any); method, location and deadline for payment of amount of successful bid;

dd) Authority in charge of signing the contract for land lease and issuing Certificate of rights to use land, ownership of land and property on land (hereinafter referred to as land use right certificate) for the auctioned land plot;

e) Responsibility of relevant agencies and units.

Article 13. Payment of land levies and land rents upon recognition of successful bid

1. Within 05 working days, from the date on which the recognition of successful bid is received from the competent People’s Committee, tax authority shall send a notification of payment of land levies or land rents in writing to the successful bidder.

2. The notification of payment of land levies or land rests shall contain:

a) Amount of land levies or land rents payable and method, location and deadline for payment according to the auction result recognized by the competent People’s Committee;

b) Name, address and number of account at State Treasury for payment;

c) Deadline for payment;

d) Deadline for transfer documentary evidence on payment of land levies or land rents to the natural resources and environment authority.

3. The successful bidder shall pay land levies into State Treasury and transfer documentary evidence on payment to the natural resources and environment authority for contract for land lease and Certificate of rights to use land, ownership of land and property on land as prescribed.

Article 14. Issuing land use right certificate and allocating land to auction winner

1. After receiving documentary evidence on full payment of amount of successful bid from the successful bidder, the natural resources and environment authority shall request the competent People’s Committee to issue land use right certificate; and sign contract for land lease as prescribed in Point d Clause 5 Article 68 of Decree No. 43/2014/ND-CP dated May 15, 2014 of the Government providing guidance on the Law on land.

2. Within 05 working days from the date on which the competent People’s Committee issues land use right certificate, the natural resources and environment authority shall cooperate with the auction authority and the People’s Committee of commune, ward or town where the auctioned land plot is located in transferring land plot and issuing land use right certificate to the auction winner; and direct relevant units to update and modify database on cadastral as prescribed.

Chapter III

IMPLEMENTATION

Article 15. Effect

This Circular comes into force from May 20, 2015.

Article 16. Implementation

1. People’s Committees of central-affiliated cities and provinces shall direct and organize the auction for allocation of levied land or land lease as prescribed in this Circular.

2. Services of Natural Resources and Environment and Services of Justice shall provide instructions for implementation of auction as prescribed in this Circular; and send biannual and annual reports to the Ministry of Natural Resources and Environment and the Ministry of Justice.

Difficulties that arise during the implementation of this Circular should be reported to the Ministry of Natural Resources and Environment for consideration./.