Buying real estate at court auction saves you 10 to 40% of the free market price.
The judicial auction is a procedure for the transfer of goods in which the right to purchase belongs to the “highest bidder”, or rather to the competitor who presents the highest bid.
It is preceded by an auction notice.
In the case of auctioning of objects resulting
from a real estate foreclosure, the notice must be placed
for three consecutive days
in the registry of the judicial office in front of which the process takes place.
If the value of the movable property exceeds twenty-five thousand euros
or if there is real estate,
the notice must also be published on specific websites
and in national newspapers at least 45 days before the deadline for submitting offers
or the date of the auction, along with a copy. of the judge’s order and an estimate of the assets.
For the modalities of participation, there is no general criterion,
it is always necessary to refer to the indications contained in the order
or in the notice of sale of the procedure, which varies according to the practices
and rules adopted by the competent Court.
Auction Property Purchase Attorney
It can be done in different ways: sale “with enchantment”, sale “without enchantment”, sale by private agreement.
In the sale without enchantment, the offer is irrevocable and immediately binding and the award at the hearing is final, while in the sale with enchantment, other competitors who have not participated in the bidding can still submit new offers within ten days. to the award.
The sale of real estate can be carried out personally by the Execution Judge or by
a professional delegated by him (notary, lawyer, public accountant)
and always according to the indications and under the supervision of the same Judge.
Regarding the bidding methods, the auction can be carried out with the secret bidding system,
with the virgin candles system, and with that of the public auctioneer.
In the first case, the basic price (minimum or maximum) is set,
which can be kept secret
or declared in the auction announcement,
and the bids are delivered
in a sealed envelope and publicly opened.
In the second case, bids are orally revealed on the spot,
and the bidder whose
a bid is not outmatched by any other for the entire time three candles burn,
each of which burns in approximately one minute wins the contest.
The third method is used only for the sale of low-value items, antiques,
or works of art for collectors.
Auction of real estate without enchantment
In the sale without enchantment,
the purchase offers must be presented in a sealed
envelope addressed to the Real Estate Execution Section of the competent Court
or to the delegated professional following the times and methods illustrated in the order
or in the sale notice and established by law and by the Court itself.
The seal offer must contain the complete personal data of the natural person to whom
the property will be registered (it is not possible to register the property to a person other
than the one who signs the offer), who will also have the obligation to be
present at the audience set for sale.
Instead, companies must specify the name or company name,
the registration number in the Mercantile Registry, the registered office and the name of
the legal representative.
Mandatory offer data
Next, the offer must contain the identification data of the property, the consideration offered
(which may never be less than the minimum price, under penalty of exclusion),
the payment methods and conditions, and finally the statement of having read the expert report. estimate.
The deposit
In the sale with enchantment, it is necessary to pay a deposit equivalent to 10% of the basic auction price
within the times and in the manner established by the competent Court
and the offers are not effective if they do not exceed the base price or the previous offer
in the indicated measure.
Offers must be presented in person or through
a person in charge with special power,
depositing them in the registry or in the professional’s office.
The consideration must be paid within the sixty days
following the award by bank transfer.
In addition to the auction price,
only taxes (VAT or registration tax) are paid
with the legal benefits (first home, farmer, etc.).
Once the balance has been paid,
the transfer of ownership also occurs.
Conditions House bought at auction
The sale takes place in the state of fact
and law in which the merchandise is found:
the presence of any defect, although hidden and not reported in the appraisal,
cannot give rise to compensation,
compensation, or price reduction, having had taken into account in the appraisal. assets
(except bad faith of the expert).
In case of non-payment of the price within the established period,
the successful bidder will be declared dismissed of the right
to obtain the transfer of the property,
will lose the deposit paid,
and will also be obliged to pay
the difference between
the award price of the auction in which he participated.
and the sale of the next auction.
Judicial sale of homes or premises
The real estate expropriation procedure consists of several phases: it begins with the seizure deed,
promoted by creditors with executive title, executed by notification, and subsequently
transcription in the Territorial Office.
Ten days after the garnishment, any competing creditor with the enforceable title can file a request for sale with an appeal to be filed with the registry.
Once the request for sale has been received,
the Execution Judge sets a hearing for the
hearing of the parties,
which is also attended by the other registered creditors
who have not yet intervened,
who must be notified of the expropriation in progress?
After estimating the value (essential to establish the base price), the judge establishes the terms of the auction and sets the date of the public sale.
Read more: Prepare the Deceased Estate for Auction at the Earliest!