Regulations
of Shenzhen Special
|
Economic
Zone on Auction of Properties
|
Article 1 In order to
standardize the auction behaviors, uphold the order of auction
market, and safeguard
the legal rights and interests of the
interested parties and the national interests), these
regulations
are hereby enacted in accordance with the relevant
laws and rules including the Auction Law of the People's
Republic of China and in the light of the practical conditions
of Shenzhen Special Economic Zone (hereinafter
referred to as
the "Special Zone"). |
Article 2
These regulations shall be applicable to the auction activities
of properties in the Special Zone. |
Article 3
Auction of properties referred herein shall mean that the
particular properties is transferred,
with trust by an agency of
auction, to the bidder who bids the highest price in a way of
public
bid or tender. |
Article 4
Goods of auction referred herein shall mean the properties
entrusted to sell by auction. |
Article 5
An auctioneer referred herein shall mean that an agency engaging
in auction business is built up
according to law. A trustee
referred herein shall mean a natural person, or a legal person
or other
associations that entrusts an auctioneer to sell his
properties by auction. A bidder in these regulations means
a
purchaser who buys the goods of auction at the highest price. |
Article 6 Engaging in
or taking part in auction activities shall obey measures of laws
and regulations and
follow the principles of open, fair, just
and an owner with the highest price. |
Article 7
Properties of a natural person, a legal person and other
associations all may be applicable with
reference to these
regulations and be sold by auction except for the provisions of
Article 8 of
these regulations. |
Article
8 The following properties are not allowed to sell by
auction. |
(1)
There is a definition stipulated not to buy or sell properties
ordered by laws and regulations
and the People's Government of
Shenzhen Municipality (hereinafter referred to as the "
Municipal
Government"). |
(2)
Ownership of properties remains contentious. |
(3)
Jus disponendi of properties is limited or remains contentious. |
Article
9 Disposition of below properties shall be entrusted an
auctioneer to sell by auction unless there have other the
provisions formulated by laws and regulations to be applied: |
(1)
Properties confiscated by smuggling goods. |
(2)
Properties confiscated and pursued by the judicial office;
properties paid as a fine and forfeit
and goods pursued unable
to turn back. |
(3)
Jus disponendi is limited or remains contentious. |
(4)
Properties are subject to be sold off when the judicial office
is enforcing the law. |
(5)
Properties of bona vacantia have been confirmed. |
(6)
Other properties shall be compulsorily sold by auction. |
Article 10 Relevant
properties needing selling by auction shall be judged according
to law when a people's
court is handling civil affairs,
economical and bankrupt cases. The reserve prices of the
properties
shall be confirmed after evaluation made by an
evaluating agency setting up in accordance with law and the
creditor shall attend the evaluation. An auctioneer is not
allowed to sell the properties by auction
if the selling price
is not in accordance with the reserve price stipulated by the
preceding paragraph.
The auction is invalid if an auctioneer
sells the properties by auction arbitrarily and shall be imposed
upon a fine of 1 to 3 times of gains from the auction by
administrative agency for industry and commerce;
if there are
losses to others, the auctioneer shall be responsible for the
compensation. |
Article 11
Properties with special provisions on condition of currency
stipulated by laws and regulations
and the Municipal Government
may, with relative conditions, be sold by auction. |
|
Article 12
Cargoes and goods supervised by the custom may be sold by
auction with an approval in written form
from the custom. |
Article 13
Auction of real estates which has not been paid for the price of
the land, structures built against
laws and rules and other real
estates ordered not to transfer by regulations are not allowed. |
Real
estates formed from getting right to use land through allocation
and transfer of administration
and the way of reducing the price
of the land, after examination and approval of the municipal
real estate administrative agency, may be sold by auction
according to the provisions of these regulations. |
Article 14 Auction of
works of art and cultural relics that are limited in currency
shall be with ratification
from relative cultural administrative
agency. If there are rules formulated separately by laws and
regulations, such provisions shall be applied. |
Article 15
Auction of properties of enterprise and intellectual shall
follow relative provisions about transferring
properties of
enterprise and intellectual formulated by laws and regulations. |
Article 16 If
a debtor has not paid all his mature debts, his hostage, vivum
vadium and properties lien may
be entrusted an auctioneer to
sell by auction by the persons of owning hostage, vivum vadium
and
properties lien. |
Article 17
Auction of properties to rent shall be noticed to a tenant. If a
contract of tenancy provides that
transferring the properties
must pass through the tenant's permission, the auction shall get
the
tenant's permission in written form. Exceptions to rules
formulated separately by laws and regulations. |
Article 18 Auction
of properties owned in common shall get all people's permission
in written form. |
Article 19 If
an auctioneer wants to engage in the auction business in the
Special Zone, he shall set up an
agency of auction. |
Article 20 Setting
up an agency of auction shall be in conformity with below
conditions: |
(1)
Registered capital shall not be less than RMB 2,000,000; |
(2)
A fixed field and relative facilities capable for conducting
auction business. |
(3)
Professional personnel with relative qualification; |
(4)
An organization and its regulations meeting the demand of
relative provisions; |
(5)
A license of special business issued by the police office; and |
(6)
Other conditions ordered by the Municipal Government. |
An
auctioneer engaging in the auction of works of art and cultural
relics shall have registered
capital more than RMB 10,000,000
and been equipped with personnel with professional knowledge of
works of art and cultural relics. |
An
auctioneer only may conduct auction business when it meets the
conditions and acquire the qualification
of a legal person
through the approval of the administrative agency for industry
and commerce of
the Municipal Government. |
Article 21 Properties
stipulated by Article 9 and 10 of these regulations shall be
sold by auction in an agency
of auction appointed by the
Municipal Government. |
If
the agency is in violation of the provisions of the preceding
paragraph, it shall be imposed
a fine of 1 to 3 times of illegal
gains and the illegal gains shall be confiscated by the
administrative
agency for industry and commerce. |
Article 22 An agency of
auction appointed by the Municipal Government shall adopt a way
of an open bid. The
Municipality provides the specific measures. |
Article 23 If
an agency of auction appointed by the Municipal Government is
subject to one of the following
circumstances, the Municipal
Government shall withdraw its qualification of auction of
properties
provided in Articles 9 and 10. |
(1)
Sell goods that must not be sold by auction; |
(2)
Sell properties provided in Article 9 of these regulations
without the trust of financial agencies
of municipalities and
districts; |
(3)
Malice allusion with a bidder, a trustee or others; and |
(4)
Other acts of auction in violation of laws. |
If
the qualification of auction of an agency of auction has been
rescinded, the agency will not
be appointed within 5 years as of
the day of being rescinded the qualification. |
Article 24 An
auctioneer has the right to examine goods of auction or ask a
client for showing the flaw of
the goods if the client knows or
shall know. |
The
auctioneer shall show or indicate the flaw of the goods if he
knows or shall know to bidders. |
If
in violation of the provisions of the preceding paragraph with a
loss to the purchaser, the auctioneer
shall bear the
responsibility of the compensation. |
Article 25 An
auctioneer, without a client's permission, is not allowed to
entrust goods of auction to other
auctioneer after receiving the
client's trust. |
Article 26 An
auctioneer and his staff are not allowed to join a bid, nor to
entrust others or be other agency
to join the bid. |
Article 27
An auctioneer shall be responsible for storage of a client's
goods of auction that is handed over
the auctioneer. |
Article 28
An auctioneer may collect separately commissions, which is of
less than 5% on a concluding price
of auction and is defined at
a rate based on a principle of decreasing as the concluding
price
increasing, from a client and bidder unless there are
regulations formulated separately by these regulations. |
An
auctioneer of immovable properties collects separately a
commission at a rate of less than 3%
on the concluding price
from a client and bidder. |
Article 29 An appointed
agency by the Municipal Government selling the properties
referred in Article 9 of
these regulations by auction is not
allowed to collect a commission from a client. |
Article 30
If an auctioneer wants to collect a commission or other charges
from a purchaser, he shall notice
bidders before selling by
auction and list the proportion of a commission, lever, methods
of the
calculation and amounts of other charges. |
If
in violation of the preceding paragraph, the auctioneer is
regarded as giving up the requirement
of collecting the
commission or other charges and not allowed to collect the
commission or other
charges from the purchaser. |
Article 31 An
auctioneer may draw money from the money of goods of auction or
conduct the right to properties
lien to the goods of auction if
a client or a purchaser does not pay the commission or charges. |
Article 32
The following acts of malice collusion shall not be conducted
between bidders, bidders and an auctioneer,
and bidders and
clients. |
(1)
Controlling biding prices; |
(2)
Appointing prices; |
(3)
Appointing purchasers; and |
(4)
Other acts of malice collusion. |
If
in violation of the provisions of the preceding paragraph, it
will be subject to a punishment
imposed by the administrative
agency for industry and commerce according to Article 65 of the
Law
of Auction of the People's Republic of China. |
Article 33 A client
shall share jus disponendi to goods of auction. |
Article 34
A client may entrust, by himself or by his agency, an auctioneer
to conduct the auction business. |
Article 35
Properties referred in the provisions of Article 9 of these
regulations shall be uniform handed
in the store of public
properties and subject to uniform management of the municipal
and district
financial agencies. |
The
Municipality formulates the managing measures of the store of
public properties. |
Article 36 Properties
of handing in the store of public properties are sold by auction
by an agency of auction
appointed by the Municipal Government
entrusted by the municipal and district financial agencies. |
The
properties referred in the first paragraph of Article 10 of
these regulations are sold by auction
by an agency of auction
appointed by the Municipal Government entrust uniformly by the
People's
Court. |
Article 37 A unit that
has sold arbitrarily properties, which is referred in Article 9
of these regulations,
without the trust of the municipal and
district financial agencies, is responsible for recovering the
properties that have been conducted by the unit. The auctioneer
shall be imposed a fine of 1 to 3 times of
illegal gains
collected from the auction and the illegal gains shall be
confiscated by the administrative
agency for industry and
commerce. Where there are losses to the State or others, the
auctioneer
shall be responsible for the compensation. |
Where
any administrative law enforcement agency and its staff in
violation of the provisions of
these regulations, the
administrative liabilities of the persons that bear
responsibilities and
the persons directly responsible shall be
investigated. Where there are losses to the State, they shall be
responsible for the compensation. |
Article38 The client
shall show or indicate the flaw of the goods if he knows or
shall know to the auctioneer. |
If
in violation of the provisions of the preceding paragraph with a
loss to the auctioneer, the
client shall bear the responsibility
of the compensation. |
Article 39 A client may
conform the reserved price of goods of auction. An auctioneer is
not allowed to sell
the goods at the price of less than the
reserved price. The client and auctioneer shall keep
confidentiality
of the reserved price. |
If
the auctioneer leaks out the reserved price by the lowest price
and open-call price or other
ways, the auction is invalid. The
auctioneer shall be imposed a fine of 3 times of gains from the
auction by the administrative agency for industry and commerce.
Where there are losses to others, the auctioneer
shall be
responsible for the compensation. |
Article 40 The auction
of the state-owned assets and the properties referred in Article
9 of these regulations
shall conform the reserved price after
evaluation according to law. |
Article 41
A client may make an agreement on open-call price with an
auctioneer. If there is no the agreement,
the auctioneer may
make the open-call price in accordance with the situation of the
goods of auction.
If the auctioneer may make the open-call
price, the open-call price shall be not lower than the reserved
price. |
Article 42
A client is not allowed to join the bid. |
Article 43 A
client shall hand over the goods of auction according to the
provisions of the Contract of Entrusting
Auction. |
Any
client who, in violation of the preceding paragraph, causes
losses to the auctioneer and purchaser
shall be responsible for
the compensation. |
Article 44 A client may
take the money of the goods of auction after transaction of
auction. |
If
the client is unable to take the money of the preceding
paragraph or has not taken the money
timely, he may recover it
from the auctioneer. |
Article 45 After the
transaction of auction, the client shall conduct, or assist the
purchaser to handle,
the procedures of transfers of right of
properties of the goods of auction and alteration of
certificates
and licenses and pay relative taxes and charges. |
Article 46
A bidder may join the bid or entrust his agent to do. |
Article 47
If the goods of auction is with respect to provisions to
monopoly and special business formulated
by laws and
administrative regulations and the Municipal Government and
others limited in currency
or use, a bidder shall be subject to
relative qualifications or conditions. |
Article 48
A bidder has the right to examine the goods of auction and
consult relative files of auction. |
The
bidder's participation of answering the bid is regarded as
having exercised the right of preceding
paragraph and accepting
the present situation of the goods. |
Article 49 A bidder is
not allowed to withdraw his answering price to the bid as soon
as he answers the bid.
The binding force of the answering price
will be removed until another bidder raises a higher answering
price. |
Article 50 The bidder
who answers the bid with the highest price gets the goods of
auction. |
Article 51
If the loss of a purchaser is caused by the fact that he is
unable to get the goods of auction
according to the agreement,
he may ask the auctioneer for compensation. |
If
the purchaser does not take the goods of auction according to
the agreement, he shall be responsible
for paying the thereof
storage charges. |
Article 52 If a
purchaser does not pay the money of the goods of auction
according to the agreement, he shall
be responsible for breaking
the contract. |
Article 53 If a
purchaser refuses to pay the money of the goods of auction, the
auctioneer may terminate the
Confirmation of Transaction of
Auction and make auction again on the said goods. The charges of
selling the said goods by auction shall be bore by the said
purchaser. If the money of the auction at the second
time is
lower than the money of the first time, the said purchaser shall
make up price differences
between two auctions. |
Article 54
A client shall submit the following documents as entrusting
auction: |
(1)
A client's identifications or certifications of lawful
qualification, testimonial of legal representative
and power of
attorney of legal person; |
(2)
Certificates of ownership of the goods of auction and jus. |
(3)
Materials of the goods of auction. |
Article 55 The
following documents shall be submitted when auction of trust is
raised according to the provisions
of Article 29 of these
regulations: |
(1)
Instruments of law that has been taken effect; |
(2)
Materials of the goods of auction. |
Article 56 An
auctioneer shall examine the documents handed over by the
client; if they meet the conditions
of auction, the auctioneer
shall sign the Contract of Entrusting Auction with the client. |
Article 57
The Contract of Entrusting Auction shall include the following
content: |
(1)
Names and addresses of the client and auctioneer; |
(2)
Names of the goods of auction, quantities (area),
specifications, quality, address of storage
(located place),
degree of depreciation (the service life), usage and situation
of occupation; |
(3)
Ways of auction; |
(4)
Reserved prices of the goods of auction; |
(5)
Commissions and other charges and the ways of their payments; |
(6)
The way of payment of the goods of auction and the deadline; |
(7)
Deadline of auction; |
(8)
Time, way and responsibility of storage of handing the goods of
auction over; |
(9)
Conditions of stopping and ending progress of auction; |
(10)
Responsibilities of breaking contract and solving measures of
dispute; |
(11)
Expiration of contract; and |
(12)
Other items needing to agree on. |
Article 58 An
auctioneer may, after the client's permission, send the goods of
auction to the relative agency
to appraise, examine, as he
considers as necessary. The relevant charges are bore by the
client. |
If
the appraisal and examining conclusion of preceding paragraph is
not consistent with the Contract
of Entrusting Auction, the
auctioneer may ask for altering or removing the contract. |
Article 59 If a client
requires the auctioneer to keep his name as a secret when the
auctioneer accepts his
trust, the auctioneer shall do it for the
client. |
Article 60
An auctioneer shall release the notice of auction 7 days before
the day of the auction. The notice
of the auction shall include
the following content: |
(1)
Time and site of the auction; |
(2)
Goods of auction; |
(3)
Qualifications or conditions of bidders; and |
(4)
Other items that shall be released. |
Article 61 Bidders who
join the bid shall hand in the following documents: |
Article 62 If
bidders require the auctioneer to keep their titles (or names)
as a secret, the auctioneer shall
do it for them. |
Article 63 In
the period of the notice, the auctioneer shall offer materials
of auction and essential conditions
for examining the goods of
auction. The materials of auction shall include the following
content: |
(1)
The content stipulated in Item2 of Article 48 of these
regulations; |
(2)
The payment of the goods of auction and its deadline; |
(3)
Commissions and other charges of the auction; |
(4)
Ways of auction; |
(5)
Taxes and charges that shall be paid as the goods of auction
transferred; and |
(6)
Other items that shall be told. |
The
auctioneer shall guarantee the trueness of the materials of
auction. |
Any
auctioneer who, in violation of the first and third paragraphs
of this Article, causes losses
to bidders and the purchasers
shall be responsible for the compensation. |
Article 64 The
auctioneer shall carry out the auction in a way that has been
agreed on and at the time and
site confirmed in the notice. |
Article 65
The auctioneer who, shall make a special statement in advance
and show ratified documents of relative
agency and explain
relative procedures that shall be conducted and charges that
shall be paid after
the transaction of the auction, sells the
properties of the provisions of Article 11, 12, 13, 14 and 15 of
these regulations by auction. |
If
the auctioneer is in violation of the provisions of preceding
paragraph and has made the purchaser
losses, the auctioneer
shall be responsible for the compensation. |
Article 66 The
auctioneer may adopt the following ways to conduct the auction: |
(1)
Auction of appraising low price, which means that the auctioneer
announces the open-call price
of the goods of auction and
bidders contest to quote and the transaction is done at the
highest
quoted price; |
(2)
Auction without an appraising price, which means that the
auctioneer does not announce the open-call
price of the goods of
auction and bidders answer the bid of the goods of auction
directly and the
transaction is done by at the highest quoted
price; |
(3)
Auction of appraising low price, which means that the auctioneer
announces the open-call price
of the goods of auction and there
are no bidders to quote and the auctioneer lowers the quote
gradually,
the transaction is done at the first quoted price. |
If there are two or more than two persons who answer the
bid in case of the third paragraph of the preceding item,
the
auctioneer shall take the said answered bid as open-call price,
and conduct the auction in
the method prescribed in the first
paragraph of the preceding item. If there are no persons answer
the bid, it shall be the sponsor of the auction who shall decide
the purchaser. |
Article 67 The
properties referred to in Article 9 of these regulations shall
not be auctioned by tender. |
An
auctioneer may auction by tender. |
The
action by tender referred in the preceding paragraph shall mean
that the auctioneer announces
information relating to the goods
of auction in advance, the buyer posts the quotation in seal to
the auctioneer in a time limit, and the auctioneer opens the
tender in public in a time limit, and the winner
shall be the
one offering the highest quotation. |
If
two or more persons offer the highest quotation as described in
the preceding paragraph, the
bargainee shall be the one firstly
posts his quotation; if two or more person offer the highest
quotation and post their quotation in a same time, the bargainee
shall be the one whose tender is firstly opened. |
Article 68 The
auctioneer shall make a record of the auction when carrying out
the auction. The sponsor of
the auction, the recorder and the
purchaser shall sign their names on the record of the auction. |
Article 69
The purchaser shall sign the Confirmation of Transaction of
Auction with the auctioneer on the
spot when there is a
transaction. |
Article 70 The
Confirmation of Transaction of Auction shall include the
following content: |
(1)
Names and addresses of the auctioneer and purchaser; |
(2)
Content stipulated in item2 of Article 46; |
(3)
Money of the goods of auction, the way of payment and the
deadline; |
(4)
Time, place and way of handing over the goods of auction; |
(5)
Bargain money; |
(6)
Commissions and the way of payment; |
(7)
Time and address of transaction of auction; |
(8)
Responsibilities of breaking contract and solving measures of
dispute; |
(9)
Other items needing to agree on. |
Article 71 The
Confirmation of Transaction of Auction has the legal effect as
well as the Contract of Business
of Real Estates both signed
legally according to these regulations after the transaction of
immovable
properties of auction. |
The
administrative agency and the administrative agency of real
estates of the Municipal Government
separately make out the
samples of texts of the Confirmation of Transaction of Auction
of Movable
Properties and the Confirmation of Transaction of
Auction of Immovable Properties. |
Article 72 The
purchaser shall pay the bargain money at an agreed rate to the
auctioneer when there is a transaction
of the auction except for
immediate clearing. |
Article 73 The
relative agency shall conduct the transfer of rights of
properties of the goods of auction and
the alteration of
certificates and licenses relaying on the vouchers of the
auction issued by the
auctioneer. |
Article 74
If the goods of auction needs transporting out the Special Zone,
the relative agency shall conduct
relevant procedures relaying
on the vouchers of the auction issued by the auctioneer. |
Article 75 The
client and the auctioneer may agree on a simple and easy
procedure of the auction if the goods
of auction are apt to
breakable, rotten and not good at storage for a long time. |
Article 76 The
progress of auction stops before the transaction of auction when
any of the following cases
occurs: |
(1)
A third party brings out objection on jus disponendi of the
goods of auction; |
(2)
The client has the right to notice the auctioneer to stop the
auction in written form if he
has a good cause; |
(3)
The stop of the auction temporary dues to accident or force
majeure; or |
(4)
Other cases may cause the stop to the progress of auction
according to law. |
The
progress of the auction shall continue when the reasons of the
stops have been removed. |
Article 77 The progress
of auction is end before the transaction of auction when the
following cases occur: |
(1)
The people's court and administrative organs confirm that the
client has no jus disponendi of
the goods of auction; |
(2)
The client has the right to notice to the auctioneer to end the
auction in written form if he
has a good cause; |
(3)
The goods of auction is destroyed or lost; |
(4)
The auction is unable to be carried out because of accident or
force majeure; |
(5)
Other cases may cause the end to the progress of auction
according to law. |
Where
the said goods of auction is sold by auction again after the
progress of the auction ends,
the procedure of the auction shall
be conducted again. |
Article 78 Where
stopping or ending the progress of the auction by the client
causes the bidders and auctioneers
losses, the client shall be
responsible for the compensation. If the fault is on the
auctioneers,
the auctioneers shall bear relative
responsibilities of the compensation. |
Article 79 The auction
shall be invalid if any of the following cases occurs after the
transaction of the
auction: |
(1)
The goods of auction belongs to the properties that must not be
allowed to sell by auction stipulated
by Article 8 of these
regulations; |
(2)
The clients, auctioneers and purchaser are not in conformity
with relative qualifications or
conditions of the provisions of
these regulations; |
(3)
The heavy loss of the purchaser is caused by the non-authentic
expressed of the materials of
the auction; |
(4)
The auctioneer is in violation of the progress of the auction
and does not sell the goods of
auction according to the
agreement; |
(5)
Bidders, or a bidder and an auctioneer, or clients malignantly
colluding and controlling the
biding price; |
(6)
The auctioneer or its staff violate Article 24 of these
regulations; |
(7)
Other circumstances are in violation of the principle of open,
fair and just during the auction; |
(8)
The properties referred in Article 11, 12, 13, and 14 of these
regulations have been sold by
auction without the ratification
and permission of relative agency; |
(9)
Relative provisions about the commissions of these regulations
are violated; |
(10)
The auction that shall be stopped or ended is not stopped or
ended; |
(11)
Other acts of carrying out the auction are in violation of these
regulations. |
Article 80 Anyone in
violation of Items (1) and (3) of Article 8, Articles 11, 12,
and 14 and Items (9) and
(10) of Article 79 shall be confiscated
against the illegal gains from the auction and subject to a fine
of 1 to 3 times of the illegal gains by the administrative
agency for industry and commerce. |
Article 81
Any agency of auction which, in violation of the provisions of
Item (1) of Article 8 of these regulations,
disturbs the
security and management of special business, shall be
confiscated against its commissions
collected from the auctions
according to law and subject to a fine of 1 to 3 times of the
commission
by the municipal public security organ; if the
circumstance is serious, shall have its license of special
business revoked. |
Any
agency of auction in violation of the provisions of Article 13
of these regulations shall be
confiscated against its
commissions collected from the auctions and subject to a fine of
1 to 3
times of the commissions by the municipal real estate
administrative agency. |
Article 82 The invalid
auction shall have no lawful effect as of the beginning of
auction. |
If
the auctioneer, client or purchaser's fault causes the auction
invalid, one or all parties who
make the fault shall be
responsible for making up other parties and the third party's
losses. |
Article 83 The
Municipal Government may formulate implementing rules according
to these regulations. |
Article
84
These regulations shall take effect as of 1st July 1998. |