Procedure for purchasing a property at an auction from the private bailiff

  1. You like a property
  2. You arrange a viewing
  3. Going for a look
  4. You make a deposit and bid
  5. Bidding auction

Who can participate in an auction from private bailiff

Any legally capable legal person and natural person can participate in the public sale. Participation may be in person or through a legal representative or proxy. The debtor, his legal representative, cannot participate as a bidder in the public sale.

How purchase offers are submitted

The auction is conducted according to the rules of a secret bidding auction, after which there is also the possibility of oral bidding. Proposals for participation from the date specified in the announcement until the end of the working day on the date announced as final in the same announcement. Offers are submitted to the registry of the district court in the location of the property, for which you are given an entry number. Proposals are submitted in a sealed envelope, together with a document proving the deposit (10% of the announced initial price). You must submit the sealed envelope with an application to the PSI, accompanied by the necessary documents, incl. power of attorney if the proposal is submitted by a proxy. Each bidder may make only one bid.

Tender offer

The tender offer must meet the following requirements:

  1. Be accurately stated in the bidder’s name or company;
  2. Indicate other data - EGN; Bulstat/Unique identifier; headquarters; address etc. ;
  3. Indicate exactly in words and figures the proposed price. The bid price cannot be less than the starting price or more than 30% of this starting price. A separate bid offer is made for each property or item with a separate starting price.

Invalid bid

Invalid offers are:

  1. All offers with a price below the starting price indicated in the announcement, as well as exceeding it by more than 30%
  2. Those for whom the mandatory deposit has not been paid
  3. Those for which the property and/or the auction in which participation is requested is not clearly defined

Withdrawal of the tender offer

If you change your mind, you can withdraw your bid until close of business on the last day of the auction period.

Deposit

A deposit document must be attached to the offer. It must be in the amount of 10% of the starting price of the property, which is indicated in the advertisement. The deposit is paid to the private bailiff’s account, which is specified in the notice. If the bidder does not win the auction, his deposit is returned immediately after payment of the price by the winning bidder. For the return of the deposit, a written request is submitted to the PSI.

Buyer announcement

The opening of the received proposals begins at the time indicated in the announcement in the building of the relevant regional court. All bidders who have submitted proposals may attend the opening. If you have to be absent, this does not prevent you from being announced as the buyer if your bid is the highest. The bidder offering the highest price is declared the buyer. If the highest price is offered by more than one bidder, PSI organizes a draw to determine the final buyer.

Oral Bidding

After the highest bid is announced, one of the other bidders may bid verbally. The opening price for oral bidding is the highest written price offered. The bidding step is in the amount of the deposit, i.e. 10% Bidders bid by show of hand. If several participants have bid for the price proposed by PSI, the bailiff assesses which of them raised his hand first and invites him to sign the protocol of this offer. Bidding continues with bidding in the same order increasing the price by one bid. The bailiff invites the participants up to three times and, in the absence of new offers, announces the highest and, accordingly, the buyer of the property. In oral bidding, bidders cannot bid with an amount other than the deposit.

Paying the price

The bidder, announced as a buyer, pays the price offered by him to the account of PSI and deducts the deposit previously paid by him. Payment must be made within two weeks of being announced as a buyer. This period may also start to run or run on weekends and holidays. If the last day of the term is a holiday or a holiday, it is extended until the first working day following the holiday. If the price is not paid on time, the deposited deposit is retained and serves to repay the debt.

If the winner does not pay the price

If the winner of the auction does not pay the price in time, the PSI declares the bidder who offered the next highest price as the buyer. If a bidder has participated with written and one or more oral offers, he is announced as a buyer only for his highest offer, and if the price is not submitted, he is not announced again for a lower price offered by him. Advertisements for a buyer must submit his proposed price after deducting the deposit within one week of being notified thereof. The same procedure is followed until payment of the price by a participant announced as a buyer or exhaustion of bidders. A bidder in the public auction announced as a buyer and who does not pay the price within the time limit loses his deposit.

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