Buying a house at auction is a special system of buying properties that has its own rules. What you need to know before deciding whether or not to participate in an auction.
An alternative way, little used to buy a house is to buy a house at auction, saving on the market the figures,
for private citizens and for companies. But in order to move safely, you need to know the rules well and know how to proceed (fast!)
It will be the effect of the crisis if real estate auctions have increased, with the sale of assets belonging to subjects who can not pay their debts. Creditors, in an attempt to obtain all or part of what is owed to them, are the ones who in many cases initiate the process of foreclosure.
So that, once auctioned, it can be purchased by any person, natural or legal (including entities and companies), except the debtor. Buying a home at auction is usually very convenient, but there are a number of things you need to be aware of. Especially if the apartment in question is occupied by the executive landlord or a tenant with a lease.
In the first case, a letter of delay is now sent to the former owner, indicating the time limit in which he is obliged to leave the house. If the letter has no effect, after a series of ultimatums, it may be necessary to notify, through the bailiff, a notification indicating precisely the term (time and day) in which the property must be released. The bailiff, in case of repeated resistance, can call on the help of the police to continue the evacuation of the premises.
* The reference legislation on real estate auctions is contained in the articles between 474 and 632 of the Code of Civil Procedure, updated by the decree-law of May 3, 2021, No. 59, the so-called “banking decree”, later transformed into law no. 119.
Among other things, the law provides that, if the foreclosed and auctioned property is unsold after three attempts (with a reduction, at each auction, of a quarter of the price), the judge orders the early closure of the enforcement process. In essence, the asset returns to the availability of the executive owner (ie the owner of the property that has been auctioned). Art. Modified. 591, second paragraph, of the Code of Criminal Procedure also provides that the judge, after the third attempt at sale was abandoned and in the absence of requests for an award,
- Housing prices are below market prices
- Auctions are always advertising, on specialized sites, and in the media, as the law says
- You need to pay quickly by bank transfer or mortgage
If the property is occupied, instead of the former owner, by one or more tenants with a regular lease, the process necessary to vacate the house can be extended by six months. The new owner, in fact, is obliged to comply with the terms of the lease and, only after its expiration, to be able to dispose of the apartment.
The transfer decree, signed by the judge, is the last step of the auction: the expropriated property passes to the winner and obliges the former owner to release it
Judicial real estate auctions refer to the forced sale of a property owned by the executor, the subject who, not having paid the debts, suffers the expropriation of the property. Auctions may be held in court or in the offices of professionals delegated by the enforcement judge.
First, however, the basic sale price of the property is fixed, determined by an expert appointed
by the judge who, after an inspection, draws up an assessment containing the cadastral identification,
the floor plan, the state of preservation, the reporting of building abuses, easements or debts in condominium comparisons. The document also specifies whether the home is vacant or occupied by the former
owner or others with a lease.
The assessment can be consulted at the court registry, in the office of the designated professional,
or on the internet, if the auction is promoted on dedicated sites. Together with the sale order,
the enforcement judge establishes the conditions and terms of the auction: the basic price,
the deadlines for submitting bids, the hearing for the bid between bidders, and the deadline by which
the property is paid, net of the deposit already paid.
In the meantime, the seized property is entrusted to the judicial custodian who keeps, manages,
and manages the property, for example by collecting the rent. This is the reference figure for those interested in purchases, whom you can contact for more information about the property. Instead, it is for the court clerk, the notary, or a delegated professional to draw up the tender notice, ie the official document containing the address of the property, the date, time, and place where the auction will take place, the basic price, the minimum increase, the deadline for submission of tenders and the conditions of sale.
The notification must be displayed for at least three consecutive days on the notice board of the court where enforcement proceedings take place and are published on specialized and authorized sites and be disseminated in newspapers and media.
At the non-auction auction, participants submit their bids in a sealed envelope (plus 10% deposit,
no identification marks) in the terms and manner indicated in the notice. Offers may not be lower than the previously set basic price. In the presence of several offers, the largest does not win,
but an offer is organized between all participants, establishing as a basis the amount indicated in the largest offer.
If the sale without enchantment remains empty, the judge orders a new auction with enchantment,
ie a public auction between bidders, declared closed when at least three minutes have passed
since the last offer and no one has made an increase.
How the payment takes place
In the non-auction auction, if there is a single bid increased by one-fifth or equal to the base price
(in which case the creditor must agree), the property is awarded directly. On the contrary,
in the presence of several offers, the judge convenes the tender, with a minimum increase indicated
in the announcement.
If the participant or delegate does not participate in the auction, one tenth of the deposit is retained
as a penalty. If the sale in a sealed envelope is always final, it is provisional in the auction;
in fact, in the ten days following the auction, the “defeated” participants can submit a new bid,
one fifth higher than the winning one.
The judge then organizes a new competition, reserved only for those who participated in the previous one. The prize is, on the other hand, final if no proposal is received within the next ten days. The successful tenderer
must pay within the time limits set out in the notice of sale, by bank transfer or by opening a mortgage loan.
In the latter case, it is important that the agreement with the bank is finalized before the expiration
of the balance. There is an agreement between the Italian Banking Association (ABI) and the courts
for the granting of subsidized mortgage loans, which covers up to 80% of the real estate price.
It is important that the agreement with the bank is finalized before the expiration of the balance.
There is an agreement between the Italian Banking Association (ABI) and the courts for the granting
of subsidized mortgages, which covers up to 80% of the real estate price.
it is important that the agreement with the bank is finalized before the expiration of the balance term. There is an agreement between the Italian Banking Association (ABI)
and the courts for the granting of subsidized mortgages, which covers up to 80% of the real estate price.
Because it’s convenient
- The property can be purchased at a lower price than the market price
- If the first three auctions become empty or the minimum price is not reached, the property is resumed
at a reduced price.
- The valuation, which must be read carefully, makes the condition and conditions of the property transparent
- Once granted, the enforcement judge releases the property from mortgages and foreclosures
What to pay attention to
- Releasing the homes occupied by the former owner, relatives or friends can take time and money
- If the assigned property is rented, the new owner will have to wait for the expiration of the regular lease
to be available.
- The executing judge cannot cancel certain tasks such as usufruct, criminal and judicial seizures, etc.
- The property must be paid quickly, within the terms provided in the notice of sale, by bank transfer
or by taking out a mortgage