What is a judicial real estate auction? Buying a home in a real estate auction can be a good opportunity for those who do not have a high budget and are looking for a good deal. At a judicial auction are sold properties owned by individuals or companies that, unable to cope with their debts, are forced to sell them to liquidate creditors. In these circumstances it is possible to buy a house at a lower price than the market, but it is necessary to know some aspects well, in order not to incur unpleasant surprises.
How a real estate auction works
First of all it is necessary to know well all the aspects that define a judicial auction. The judicial auction takes place at the competent Court or the study of a designated professional. The judge instructs a professional to draw up an appraisal report, to determine the value of the property . In the appraisal it is possible to find a lot of information about the property, such as the cadastral data, the plan, the technical and descriptive characteristics of foreclosed homes, the presence of any restrictions and easements or building abuses. So it is very useful to consult this document. This can be done by going to the stationery or, often, also online, in the case of auctions banned with this system.
The judge then issues the sales order, which sets all the stages of the sales process:
– the starting price;
– the closing date of the offers;
– the date of the auction;
– the date by which the purchase of the property must be paid.
The judge also appoints a judicial custodian, a person who takes charge of managing the attached property, taking care, for example, of the possibility of making it visit to possible buyers. The auctioning of a property must be properly advertised, with the publication of the notice of sale (or auction notice) at least 45 days before the auction. Today this advertising also takes place with the Internet: there are many official sites where it is possible to know which houses are auctioned and also to view their reports.
The auctions are of two types:
– without enchantment, in which offers are presented in a sealed envelope;
– with enchantment, in case the one of the first type has been deserted, with public competition among the participants.
How to participate in a judicial real estate auction
After choosing a house for sale at an auction of interest, it is advisable to make a visit to the property by contacting the judicial custodian. If the property is to your liking, you can proceed to submit an offer. In the case, instead, of auction with enchantment, it will be necessary to present its intention to participate in the auction and a deposit of the amount requested by the announcement.
At the time the auction takes place without enchantment, if there is only one offer, the property is awarded, unless the creditor disagrees with the proposed amount, in which case the same is awarded, but with an increase of 1/5 of the offer. The winning buyer will have to make the balance within the deadlines set by the order.