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

When buying it is good to check for the following things

• Whether the auctioned property is wholly owned by the debtor
• Presence of foreclosures on the property
• Presence of encumbrances on the property, such as a mortgage, lien, etc.
• Non-sequestrable property - can the property be auctioned at all

This can be checked by checking the registers that maintain information about the relevant property - the Property Register at the Registration Agency, the Cadastral and Administrative Information System (KAIS) of the Agency for Geodesy, Cartography and Cadastre or by asking the Ministry of Agriculture , food and forests - for agricultural lands and forests in non-urbanized territory.

Buying a property from a foreclosure or foreclosure is not a problem

After purchasing a property through a public sale, liens and encumbrances on the property are cleared, but this does not happen automatically. The buyer must himself submit an application/request for the removal of these measures and perform actions to lift the imposed foreclosures and mortgages on the acquired property. The procedures are not complicated and can be done personally by the seventh buyer.

Encumbrances that follow the property and that do not go away after a public sale

These are the right of construction, the right of passage, the right to upgrade and add on, registered leases and leases, as well as the right to use, if the same were established by the owner of the property before the foreclosure or mortgage.

Participation in an auction by proxy

While in the procedure of the NRA, municipalities, state institutions and the bankruptcy procedure participation in the bidding of a proxy with a notarized power of attorney is undoubtedly allowed, in the procedures of the PSI/DSI this issue is controversial. Some bailiffs necessarily want the proxy to be among those described in Art. 32 CPC (ie lawyer, legal adviser, parent, child, spouse). Before participating in a bailiff procedure, it is advisable to first ask the bailiff himself if he allows a power of attorney with a note. certified power of attorney.

After winning the auction

After the property is bought, you must ask the PSI for a letter that you have not assumed the debtor’s mortgage. It is not necessary to pay for entry if the debtor cooperates. You usually have a deadline to pay the balance of the final price. Watch out for this deadline, because if you miss it, you lose both the deposit given and the right to buy the property!

Pros of buying property from a public sale or auction

Whether you are looking to buy your first home or are a serious real estate investor, buying a property at auction is a wonderful opportunity because:

• you save money because you buy below market value that you would pay on the open market
• an opportunity to let your imagination run wild when renovating the property
• you are buying a property that will most likely never hit the open market because the owner would never sell it under normal conditions
• opportunity to buy property in locations for which there are no properties on the open market
• You save 3% broker commission