(Chinhphu.vn) – Through the Receiving and responding System to businesses' recommendations, Mr. Nguyen Cong Luong (in Ha Tinh Province) would like to request authorities to clarify some contents as stipulated in Article 5 of the Law on Property Auction.

Clause 5, Article 5 of the Law on Property Auction No. 01/2016 / QH14 dated November 17, 2016 explains:“Auctioned property seller means an individual or organization that owns a property item to be auctioned or a person authorized by a property owner to sell a property item through auction or person having the right to put a property item for auction under an agreement or in accordance with law”.

According to the above content, in case individuals have mortgaged assets, guarantee for legal entities to borrow credit to carry out civil judgments, executors of Civil Judgment Execution Agency sign a contract with the tournament organization, asset prices, sale of collateral to recover debts at the request of credit institutions.

Mr. Luong would like to ask, in this case, the person with the auctioned property must be the person with the mortgage loan security property to be auctioned or is the civil judgment enforcement agency is the person have auction assets? What are the rights of individuals with mortgage-backed collateral before, during and after the auction?

Regarding this issue, The Department of Justice Assistance, Ministry of Justice responded as follows:

Under the provisions of Clause 5, Article 5 and Clause 1, Article 33 of the Property Auction Law, the person with the auctioned property is an individual, a property-owning organization and the person authorized by the property owner to auctioning assets or persons entitled to put properties to auction according to agreements or according to law provisions. The person with the auctioned property shall enter into a property auction service contract with the property auction organization to effect the property auction.

According to Clause 2, Article 101 of the Law on Execution of Judgments, the involved parties have the right to agree on the auction organization. Executives sign a property auction service contract with the auction organization agreed upon by the involved parties. If the involved parties cannot reach agreement, the executors shall select the auction organization to sign a property auction service contract.

Based on the above-mentioned legal provisions, the Department of Justice Assistance, Ministry of Justice found that in the case of civil judgment enforcement agencies (executives) signed a property auction service contract with auction organization. properties for auctioning already distrained properties, the Civil Judgment Execution Agencies (executors) shall fall under the cases where persons have the right to put properties into auction according to law provisions.

Therefore, in this case the Civil Judgment Execution Agency (Executor) is the person with the auctioned property.

The Law on Property Auction is built from the point of view of direction as the law of form and uniform provisions on the order and procedures for asset auction. The content related to the stage before the signing of the auction service contract such as the valuation to determine the starting price, asset assessment and the period after the auction price as the implementation of a purchase contract auction, transfer of ownership and use rights are not subject to auction order and procedures shall comply with specialized laws applicable to such types of assets.

The Civil Code, the law on security transactions has specified the rights, obligations and issues relating to mortgages and mortgage recipients when making mortgages.

The Law on Property Auction has no specific provisions on the rights and obligations of people who have collateral for loan security during the auction process. Therefore, if the person with a mortgage security loan meets the conditions for registration to participate in the auction, he / she can register to participate in the auction and have the rights and obligations of the person registering to participate in the auction according to provisions of the Law on Property Auction and related laws.