Bailiff auction of the debtor's real estate

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A bailiff auction of a debtor's real estate is a type of public sale in which anyone can participate. Such an auction may be used to sell houses, flats (including cooperative ownership) and real estate mortgaged to the creditor. As a rule, real estate can be seized and auctioned only if it is the property of the debtor. Such an auction is conducted by a court bailiff supervised by the court having jurisdiction over the property.

Bailiff auction of the debtor's real estate - preparation

Before a property can be sold by public auction, the property must first be seized. Such attachment is carried out by the bailiff, at the same time summoning the debtor to settle the debt within 2 weeks of receiving the summons. At the same time, an entry is made in the mortgage on the initiation of enforcement.

Application for description and estimate

If the debtor, despite receiving the summons, decides not to settle the debt, the creditor has the right to apply to the bailiff to describe and estimate the real estate. The assessment is made by an expert. After describing and estimating and completing all the necessary documentation, the bailiff and the court that supervises the proceedings announce the date of the auction. The condition is that this auction may take place at the earliest 2 weeks after the description and evaluation of the real estate becomes final. Information about the auction must be made public not later than 2 weeks before it is held. An announcement about the date, place and description of the property is displayed in the court building, the commune authority where the property is located, and in the local daily newspaper.

Pay the warranty before the auction

Before the auction, each interested party must pay a guarantee of 1/10 of the property appraisal value.Such a warranty is retained in the event of a bidder's award being confirmed and the remaining bidders are returned to the warranty they have raised. If the bidder who received the confirmation fails to pay the price, he / she irretrievably loses his warranty, which is intended for the costs of enforcement, and the surplus is included in the sum obtained in the enforcement, and in the case of redemption of the enforcement, it is transferred to the State Treasury.

Bailiff auction of the debtor's real estate - course

The bailiff's auction of the debtor's real estate is oral and is conducted by a bailiff. On the first scheduled date of the real estate auction, its starting price shall not be less than ¾ of the estimated price. If the real estate cannot be sold, a second auction date is set at the creditor's request. In the second term, the starting price drops and amounts to 2/3 of the estimated value of the auctioned property.
The creditor may, of course, take ownership of the property at the starting price, but if it does not want to do so, and the first and second auctions do not have the intended effect, the enforcement proceedings are discontinued, and a new enforcement against this property may take place only after 6 months.

The bidder wins the bidding process. The bailiff grants a bond to the person who offered the highest price for the property put up by auction. Such a confirmation is granted after the other bidders are called three times for further steps. The bidding results in the sale of the property to the highest bidder.

After the decision on the adjudication made by the court becomes legally binding, the buyer of the real estate is obliged, within 14 days of receiving the summons, to pay the auctioned amount by making a payment to the court's escrow account less the warranty paid in cash. Then the court will issue an order awarding ownership, which is the same as transferring ownership to a new owner and making an entry in the book to the creditor. The new owner has the option of enforcing the departure of the property by the current tenants and emptying it of their belongings.