In case of  land leasing through auction of land use rights

Land leasing through auction is a method applied by the State to allocate land to organizations and individuals for use. This process ensures the rights of stakeholders, increases budget revenue and effectively uses land funds. Understanding issues related to land lease through auction of land use rights is extremely important. This article will analyze cases of land lease through auction of land use rights.

What is a land use rights auction?

Auction of land use rights or land auction is a special method of land distribution by the State. Unlike the State, which allocates land with collection of land use fees or leases land on the principle of openness and transparency through auction. This is a way to select land users with financial capacity and the ability to use land most effectively.

Auctioning land use rights brings many benefits such as: increasing budget revenue, effectively using land funds, selecting qualified investors, and ensuring openness and transparency in land management. .

In case the State leases land through auction of land use rights

Pursuant to Article 125 of the Land Law 2024, the State leases land through auction of land use rights in the following cases:

• Investment projects using land from land funds managed by the State according to Article 217 of the Land Law 2024, except for cases of land allocation not through auction specified in Article 124 and Article 126 of the Land Law 2024;
• Land lease with one-time payment for the entire lease period for investment projects that are not subject to land allocation by the State.

To conduct a land lease auction, individuals/organizations participating in the auction need to meet the following conditions:

• 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, except in the case of auctioning land use rights for land recovered by the State and assigned to a land fund development organization for management.
• Have a detailed planning of 1/500 established and approved by a competent state agency for housing construction investment projects;
• There is an approved plan for auctioning land use rights.

Land leasing through auction helps select investors with financial capacity and the most effective land use plan, while ensuring openness and transparency in land management.

Conditions for participating in land use rights auctions

For organizations

Pursuant to Clause 1, Article 55 of Decree 102/2024/ND-CP, Clause 3, Article 125 of the Land Law 2024; 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 according to the provisions of Article 119 and Article 120 of the Land Law 2024;
• Have financial capacity to implement investment projects;
• Have a business line suitable for the purpose of using the land to implement the investment project;
• Do not violate the provisions of land law in cases where land has been allocated or leased by the State to implement a previous project;
• Pay a deposit equal to 20% of the total value of the land calculated at the starting price to auction land use rights;
• Not subject to being banned from participating in auctions according to the provisions of law on asset auctions.

In addition, for housing and real estate business projects, organizations participating in the auction must also meet the conditions prescribed by the law on housing and real estate business.

For individuals

According to the provisions of Clause 2, Article 55 of Decree 102/2024/ND-CP, individuals participating in the auction of land use rights must meet the following conditions:

• Being subject to land allocation or land lease by the State according to the provisions of Article 119 and Article 120 of the Land Law 2024;
• Have full civil act capacity according to the provisions of civil law;
• Have enough financial capacity to carry out land use according to the progress of the investment project;
• Do not violate the provisions of land law in cases where land has been allocated or leased by the State to implement a previous project;
• Pay the deposit according to regulations;
• Not subject to being banned from participating in auctions according to the provisions of law on asset auctions.

In case an individual participates in the auction to implement an investment project, he or she must commit to establishing an economic organization that meets the prescribed conditions after winning the auction.

Process and procedures for land leasing through auction

Pursuant to Article 229 of the Land Law 2024, the process and procedures for land leasing through auction include the following main steps:

Step 1: Prepare auction documents

• The land fund management unit prepares an auction plan and submits it to the competent authority for approval;
• Prepare documents for auction land to send to land management agencies;
• Determine the starting price and submit it to the competent People’s Committee for approval;
• The People’s Committee has the authority to decide on the auction of land use rights.
• Choose an auction organizer.

Step 2: Organize the auction

• Notice of public auction;
• Receive registration documents to participate in the auction.
• Organize the auction according to regulations.

Step 3: Confirm winning auction results

• Prepare documents to submit to the competent People’s Committee for recognition of winning auction results;
• The competent People’s Committee issues a decision to recognize the winning auction results.

Step 4: Pay land use fees and land rent

• The tax authority sends a payment notice to the auction winner;
• The winning bidder pays money according to regulations.

Step 5: Issue the Certificate of land use rights

• The land management agency submits to the competent People’s Committee for issuance of the Certificate;
• Sign a land lease contract (in case of land lease);
• Hand over the land on site and give the Certificate to the auction winner.

This process ensures transparency and openness in land leasing through auction, helping to select qualified investors and effectively use land funds.

Professional consulting services on land use rights auctions in Long Phan

Long Phan provides professional consulting services on land use rights auctions, including:

• Consulting on issues related to auction methods for land use rights
• Market analysis: Provide information and evaluate the potential of the auction land, helping customers make appropriate investment decisions;
• Support for document preparation: Guide and support customers to fully prepare documents to participate in the auction according to regulations;
• Auction strategy consulting: Building an effective auction strategy based on market analysis and customer capabilities;
• Auction participation representative: Support customers during the auction process, ensuring maximum benefits;
• Support after winning the auction: Consulting on procedures after winning the auction such as paying land use fees, receiving land handover, applying for a Certificate of land use rights.

With a team of experienced experts, Long Phan is committed to providing professional, comprehensive consulting services on land use rights auctions, helping customers optimize investment opportunities.

Land leasing through auction is an effective and transparent method in land management and use. To successfully participate in the auction, you need to master the legal regulations and have an appropriate strategy. If you need in-depth advice on land use rights auctions, please contact Long Phan via hotline 0906735386. We are ready to support you throughout the auction participation process.