Regulations on auction of land use rights according to the Land Law 2024

Auction of land use rights is a mechanism to enhance transparency and fairness in land resource management. This regulation not only creates conditions for investors to legally access land but also promotes competition, contributing to optimizing the value of public assets. Through the following article, Long Phan will specifically analyze the regulations on auctioning land use rights under the Land Law 2024, thereby helping you effectively and legally exploit land resources.

The conditions of the land plot are subject to land use rights auction

Pursuant to Clause 2, Article 125 of the Land Law 2024, the conditions of the land plot for land use rights auction are:

• Land has been recovered and compensation, support, and resettlement has been completed or no compensation, support, or resettlement is required; In the project area, there is already connected transportation infrastructure;
• Included in the approved district-level annual land use plan for the purpose of auctioning land use rights, except in the case of auctioning land use rights for land specified in Point e, Clause 1, Article 217 of this Law. This law;
• Have a detailed 1/500 plan prepared and approved by a competent state agency for housing construction investment projects;
• There is a plan to auction land use rights approved by a competent authority.

Conditions of organizations and individuals participating in the auction of land use rights

Pursuant to Clauses 3 and 4, Article 125 of the Land Law 2024 and Clauses 1 and 2, Article 55 of Decree 102/2024/ND-CP, the conditions for organizations and individuals participating in the auction of land use rights are:

Organizations participating in the auction of land use rights must meet the following conditions:

• Being subject to land allocation or land lease by the State;
• Ensuring the conditions specified in Article 122 of the Land Law 2024 in cases of land allocation or land lease to implement investment projects; having capacity and experience in project development;
• Other conditions as prescribed by law on asset auctions.
• A group of companies is an economic group or a parent company or subsidiary that, when participating in the auction of a plot of land, a plot of land or a project consisting of one or more plots of land, must agree to appoint a company from the group of companies. Participate in auctions of land use rights;
• Must pay a deposit equal to 20% of the total value of the land plot or plot of land calculated at the starting price to auction land use rights;
• Not subject to being prohibited from participating in the auction according to the provisions of law;
• Meet the conditions prescribed by the law on housing and the law on real estate business in the case of auctioning land use rights to implement housing projects and other real estate business projects.

Conditions for individuals participating in land use rights auctions

• Subject to land allocation or land lease by the State
• Conditions according to the law on asset auctions
• In case an individual participates in the auction of land use rights to implement an investment project, he or she must commit to establishing an economic organization.

When does an auction of land use rights fail?

Pursuant to Clause 6, Article 125 of the Land Law 2024, cases of unsuccessful auction of land use rights include:

• Cases of unsuccessful auctions according to the provisions of the Law on Asset Auctions;
• The registration deadline has expired but only 01 person has registered to participate in the auction;
• There are many people registering to participate in the auction but only 01 people participate in the auction or there are many people participating in the auction but only 01 person bids or there are many people bidding but only 01 valid bidder.

Procedures for land allocation and land lease through auction of land use rights

Pursuant to Article 229 of the Land Law 2024, the order and procedures for land allocation and land lease through the auction of land use rights include the following steps:

Step 1: Preparing to organize an auction of land use rights

• The unit being assigned to manage the land fund prepares a plan for auctioning land use rights and submits it to the competent authority for approval;
• The unit assigned to organize the auction of land use rights is responsible for preparing documents of the land area and plot of land for auction and sending them to the agency with land management function for submission to the People’s Committee at the appropriate level. Authority to decide on auction of land use rights;
• The agency with land management function shall organize the determination of the starting price of the land and land plot for auction and submit it to the competent People’s Committee for approval;
• Based on the request of the agency with land management function, the People’s Committee at the competent level decides to auction land use rights;
• The unit assigned to organize the auction of land use rights is responsible for organizing the selection and signing a contract to lease the unit and organize the auction of land use rights.

Step 2: Conduct an auction of land use rights

The unit or organization conducting the auction of land use rights is responsible for conducting the auction of land use rights in accordance with the law on asset auctions.

Step 3: Recognition of land use rights auction results

• The unit assigned to organize the auction of land use rights prepares documents and sends them to the agency with land management function to submit to the competent People’s Committee to issue a decision to recognize the winning results of the land use rights auction land use;
• The People’s Committee at the competent level shall sign and issue a decision recognizing the results of the successful auction of land use rights and send it to the agency with land management functions and the unit assigned to organize the implementation. Currently auctioning land use rights, tax authorities and land use rights auction winners.

Step 4: The auction winner pays land use fees and land rent according to the provisions of the law.

Step 5: Responsibilities of agencies with land management functions after the auction winner pays land use fees and land rent:

• Submit to the People’s Committee at the competent level to issue decisions on land allocation, land lease and sign the Certificate of land use rights and ownership of assets attached to land;
• Transfer documents to the land registration organization or branch of the land registration organization to update and adjust the land database and cadastral records according to regulations;
• Sign a land lease contract in case of land lease.

Step 6: Give the Certificate of land use rights and ownership of assets attached to the land to the winner of the land use rights auction.

Consulting services on land use rights auction issues under the Land Law 2024

Issues about auctioning land use rights under the Land Law 2024 are relatively new issues for subjects. Although the auction is a fair method for subjects to use land, the process of implementing this method has made the parties, especially the parties participating in the auction, encounter many difficulties. Therefore, Long Phan provides comprehensive consulting services to support you, including:

• Consulting on cases of land allocation and lease that must be through auction
• Consulting on conditions for organizations and individuals to participate in auctions of land use rights
• Consulting on preparing documents and records before auctioning land use rights
• Instructions on the order and procedures for auctioning land use rights
• Representing you to submit documents and work with relevant parties
• Consulting and support in handling situations that arise during your participation in the auction of land use rights
• Consulting on other related issues.

Consulting services on land use rights auctions according to current land laws are increasingly popular when people with land use needs participate in land use rights auctions. Therefore, if you need advice and support on issues related to land use rights auctions, please contact via Hotline: 0906735386. Long Phan will always accompany you to solve the problem.