The hearings of judicial auctions are public, so you will be able to familiarize yourself with the process, freely attend sales without carrying the auctions.
How do I get the information about the sale that interests you?
- Consult the conditions of the sale book which will become your title deed. It includes information concerning the property for sale (description report, town planning, diagnosis, occupation, conditions of sale, etc.)
You can consult the conditions of sale book at the lawyer’s office continuing the sale OR at the foreclosure registry of the Tribunal de Grande Instance before which the sale is being pursued.
- Visit the property for auction. It is a judicial officer who organizes the visit. The dates and time of the visit are generally indicated on the advertising media (posters, announcements). Otherwise, contact the lawyer who is continuing the sale.
How to bid?
The auctions are carried out by the ministry of a lawyer registered with the bar of the tribunal de grande instance before which the sale is being pursued.
Before bidding, the lawyer is given a cashier’s check representing 10% of the amount of the initial bid, without the amount of this guarantee is less than € 3,000 and a cashier’s check covering at least the amount of upfront costs.
The lawyer establishes a power on which will be indicated, among other things, the maximum amount of the auction.
How to become a successful bidder?
It is the person who raised the highest bidder who will be declared the successful tenderer at the end of the auction. However, the sale will only be final after a period of 10 days (the possibility of forming a higher bid).
How to bid?
Anyone can bid at least one-tenth of the main price of the sale. This bidding must be formed by legal action and filed with the registry of the execution judge within 10 days of the adjudication.
Sale or takeover of businesses and companies, bankruptcy, liquidation or receivership or judicial settlement
Following a receivership or liquidation procedure, the Administrators or Legal Representatives are required to launch a call for applications concerning either the takeover of a business or a company, or the sale of companies or premises.
The Agency’s mission is therefore to publish these announcements in the press (general or specialized) to attract amateurs. The conditions of submissions are fixed by the Administrators or the Legal Representatives; trade-in offers are generally made in sealed envelopes.
A practical guide to public auctions by the auctioneer, judicial sales by adjudication
Movable property sales may be carried out following reorganization or liquidation proceedings, resulting in the sale of “movable assets” (vehicles, miscellaneous furniture, IT equipment, stocks of products, etc.).
They can also be volunteers.
The Agency generally publishes announcements in the general and specialized press.
JUDICIAL SALES GUIDE
Who can buy it?
The auction rooms are open to anyone interested in a sale. The sales hearings are held publicly, ie wide-open doors. You can therefore freely attend a sales hearing. With the exception of the debtor seized, the court officials who intervened in any capacity in the proceedings, and the magistrates of the jurisdiction before which the sale is being pursued, anyone can participate in an auction, and achieve a good case ..
Representation by a lawyer is compulsory, you must, before participating in a real estate auction at the bar of the court, provide the lawyer you have chosen, a certain number of documents and information. (See: documents to provide and mandate to bid)
What are the Auctions guarantees?
The sale is placed under the control of the Court. Since the entry into force of Decree No. 2006-936 of July 27, 2006, the Execution Judge directs the hearing. (For old procedures, not subject to the aforementioned decree, it is the President of the auction room – Name given to the sales courtroom – who directs the hearing).
No one person has an advantage over another and no pressure can be exerted by anyone.
In addition, the bids are obligatorily brought by the intermediary of a lawyer registered with the bar of the place of the sale. Anonymity is therefore guaranteed, no one knowing on whose behalf the lawyer is pushing the auction.
What should be done?
The first information is obtained from the lawyer who continues the sale.
This information relates to the property itself (is it free from any occupation, rented, are the dates and times of visits to the property fixed) and the environment of the sale, i.e. the rights and obligations resulting both from the property itself and from the sale procedure. This information will be obtained by consulting the specifications of the sale (formerly called specifications of the sale).
This document is a real contract between the buyer and the seller. It sets all the rights and obligations relating to the sale concerned. Its consultation is essential. The books of the conditions of sale are deposited with the clerk of the Judge of the execution of the tribunal de grande instance of the place of sale. The lawyer pursuing the sale has a copy in his office.
You must then form your own idea of the interest and value of the property being sold by going there, either during the organized visits or on your own initiative. Finally, set the maximum price you want to spend and choose the lawyer of your choice who will represent you at a low cost.
Representation to push the auction must be done by a lawyer registered with the bar of the place of sale.
What are the fees?
In addition to the hammer price, you must plan for certain costs:
– Preliminary costs: These are the costs generated by the procedure leading to the sale. (Costs of Ministerial officers: Order to pay, order for foreclosure of real estate, descriptive report, fees for site visits when they are fixed … Miscellaneous costs: publication of the order for foreclosure on mortgages, locksmith fees …) The lawyer can communicate them to you immediately or give you a very precise idea.
– Lawyer’s fees: They are proportional to the hammer price and according to a sliding scale as the hammer price increases. This scale is the same as that of notaries for the calculation of their emoluments during sales by mutual agreement.
– The lawyer’s fees if the latter claims it. They are freely negotiated with him.
– Acquisition costs: These are the classic transfer rights that you will also encounter during an amicable sale on the over-the-counter market. Registration fees or VAT. The property is placed under the real estate VAT regime if it is a completed building, which is less than 5 years old, and if it has never been subject to renovation since its completion. a resale (except to a merchant of goods). If one of these conditions is not met, the building will be subject to registration fees. (around 5.09% in 2013, with the various local taxes). It can be very interesting to buy at auction a property subject to real estate VAT. Indeed, in this case, provided that the specifications have provided for the clause indicating that ”
As a general rule, all of these costs (preliminary, emoluments, fees, transfer rights) do not exceed their equivalent in the context of an amicable sale by real estate agent commission and notary and acquisition costs. Remember that when buying at auction, the title deed is not a notarial deed since it does not go to the notary (except in the event of recourse to a mortgage loan intended to finance the purchase) . The title deed consists of a document called “La Grosse” which is “lifted” by the lawyer after adjudication and publication of the adjudication judgment.
How are the auctions?
The bids are carried by the lawyer of your choice according to the orders that you communicate to him on the spot or by virtue of the mandate that you have previously sent to him.
Bids are stopped when ninety seconds have passed since the last auction. This time is counted by any visual or sound means which indicates to the public each elapsed second (for the old procedures the time was counted by means of three candles which went out successively). If after this period of time, no auctions have come to cover yours, you are declared the successful bidder. However, during the ten days that follow, anyone can form a tenth bid. In this case, a new sale will be made.
When and how to pay the price?
All costs must be paid within one month of the final sale.
The deposit of the price to which the successful bidder is bound in the application of Article 2212 of the Civil Code must be made within two months from the date of the final award, under penalty of repetition of the auctions (resale of the good resulting in financial consequences for the first defective contractor). After this period, the sale price is automatically increased by interest at the legal rate until the full consignment of the price.
You, therefore, have sufficient time to organize the financing of your operation. Financing your purchase is as easy as in any amicable sale.
So you have the possibility to prepare your financing before the sale and to carry it out if you are indeed the successful tenderer, in order to pay the price using your loan.
See also: Why do you Need an Expert Real Estate Agent to Buy any Property?
