Auction of real estate by a bailiff
Real estate auction is a type of public sale of an apartment / house in which anyone interested can participate. It applies to owner-occupied apartments and houses as well as cooperative ownership apartments. You can auction the real estate, the mortgage of which was charged to the creditor at the time of concluding, as well as the real estate that does not have a mortgage established for the benefit of the creditor. In the second case, the creditor applies for debt collection proceedings by selling the real estate due to the debtor's failure to pay its obligations. Only real estate owned by the debtor can be auctioned.
The auction is always conducted by a bailiff under the supervision of a judge from the court competent for the location of the property being auctioned.
Real estate auction by a bailiff - how is it going?
The bidding procedure consists of several stages. In this article, only the preparation and conduct of the auction will be discussed.
The first stage is the seizure of the property. By doing this, the bailiff simultaneously calls the debtor to settle the debt within 2 weeks from the date of receipt by the debtor of the request for payment and by making an entry in the mortgage on the initiation of enforcement. If the debtor fails to meet the two-week debt settlement period, the creditor may apply to the bailiff to prepare a description of the property intended for auction and to estimate its value by an expert.
After the documentation regarding the property being auctioned has been prepared, the bailiff and the court supervising the proceedings announce the date of the auction. It may take place at the earliest two weeks after the description and appraisal of the real estate becomes final. Auction of real estate is public and information about it must be announced two weeks before its date in the court building, the commune authority in which the property is located and in a widely read local daily.
On the first date, the starting price for the sale is not less than of the estimated value of the property, and if no buyer is found, at the creditor's request, the second date of the auction is set, and the starting price drops to ⅔ of the estimated value of the property.
The condition for joining the auction is the payment of a warranty by each of the participants (in the amount of one tenth of the sum of the estimate). The amount of the warranty is included in the selling price in the event of winning the auction, and in the event of losing it is returned. The auction itself is oral. The winner is the participant who offers the highest price.
If, in the first and second auctions, no one purchases the real estate, and the creditor does not take over the real estate at the starting price (¾ in the first auction and ⅔ in the second auction), the enforcement proceedings are discontinued and a new enforcement of this real estate may take place not earlier than after 6 months.
Start a free 30-day trial period with no strings attached!
End of the auction
The winning bidder who offered the highest price is confirmed by the court (the so-called "bidding"). After the decision becomes final, the new buyer of the property must, within 14 days of receiving the summons, settle the auctioned amount less the warranty paid in cash (the buyer pays the money to the court's escrow account).
After the court's decision to award and pay the amount due becomes final, the court issues an order awarding ownership. This is tantamount to transferring ownership to the new owner, and this is sealed with an appropriate entry in the land and mortgage register. The new owner gains the right to have us leave the apartment or house and empty it of our belongings.