With the ever-higher property prices, many people may consider buying a property at auction. Our office can provide full legal assistance to both auction buyers and debtors as well.
First of all, it is important to emphasize that during enforcement, money claim must be collected primarily from the amount debtor’s bank account or from the debtor’s wages. If it is foreseeable that the claim cannot be collected within a relatively short period of time, any assets of the debtor can be subject to enforcement. However, seized property can only be sold if the claim is not fully covered by the debtor’s other assets, or if it can only be satisfied after a disproportionately long time.
In order to seize the property, the enforcement agent (bailiff) contacts the property registry to register the enforcement right in the property registry. Then the enforcement right gets registered.
The enforcement agent may take measures to sell the seized property at the request of the creditor if the enforcement would be too long and 45 or 60 days have passed since the registering of the right of enforcement.
Before auctioning off the property, the enforcement agent determines the appraised value of the vacant and the occupied property, taking into account the tax and value certificate that is not older than 6 months, or based on the expert opinion. If an enforcement objection is raised within 15 days of the notification, then a court will determine the estimated value – with the assistance of an expert if necessary.
After that, the enforcement agent sets the auction with an auction notice, which he delivers to the parties and posts it in public notices. The starting price of the property is the sum of the bid price. However, with the exception of residential properties, a valid purchase offer can be made for at least half of the asking price. A valid purchase offer can be made for a residential property with an amount equal to at least 70% of the asking price. A claim based on a contract concluded with a consumer, the purchase offer must meet the asking price – if it is the debtor’s only residential property, his place of residence has been the property since six months prior to the initiation of the enforcement procedure.
The enforcement agent prepares a minutes of auction, copies of which will be delivered to the parties concerned. Upon a successful bid, the agent calls the auction buyer to appear at the agent’s office within 15 days from the receipt of the invitation in order to sign the minutes of auction.
Vacating real estate
The debtor and the persons living in the property under the debtor’s right must vacate the property by the 30th day from the auction. If the enforcement agent has given a longer deadline for payment of the purchase price, then that date would apply. In the case of an appeal, the relevant decision would be applicable. The occupiers are obliged to leave the property empty of their movables and to ensure that the enforcement agent can hand it over to the auction buyer.
If the occupiers have not vacated the property, the auction buyer can apply for vacating the property within 15 days after deadline for vacating the property has passed. The enforcement agent also informs the local city manager. At the request of the auction buyer, the enforcement agent takes measures to vacate the property once 60 days have passed since the information sent to the city manager.
Of course, during the enforcement many objections, or sn appeal can also be lodged considering all the circumstances of the case. Call us if you need expert legal assistance either as a creditor or as a debtor.