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Auction of movable and immovable property

If a movable or immovable property is put up for auction by a liquidator, he will apply the legal provisions regarding the auction sale of the debtor company’s assets. Thus, following the organization of the auction and the designation of the adjudicator, either to issue you a proof – in the case of movable goods, or an adjudication act will be concluded – in the case of real estate.

A. Auction of movable property

The sale of movable goods at auction involves performing several stages:

  1. Formalities prior to the sale at the auction
    A first stage is to bring to the public notice, at least 3 days before the actual auction, thus following a participation as numerous and active as possible in the auction. The auction announcement is made by preparing and displaying the announcement for sale at the place of the auction, at the headquarters of the enforcement body, of the City Hall at the place of sale of the goods and of the court of execution, and if it is considered necessary, the announcement will be published in a widely circulated newspaper. The announcement itself must contain the date, time and place of the auction, the enumeration of the goods that will be offered for sale and the starting price of the auction will be indicated for each one.
  2. Conducting the auction
    The starting price of the auction is the one published in the announcement, but unlike real estate auctions, this price is only informative. According to the legislation, competitors are free to offer any amount, provided that it is not ridiculous. If the starting price of the auction is not obtained, the good will be sold at the highest price offered. However, the creditors cannot award the sale of the goods at a price lower than 75% of the price initially announced at the beginning of the auction. After the auction has been closed, a report will be drawn up on the conduct and result of the auction. of liquidator, creditor and adjudicator.
  3. Auction award
    According to the legislation in force, a good purchased in an auction cannot be paid in installments. The successful bidder must pay the value of the good within 5 days, at which time it will be handed over. The liquidator will issue to each successful bidder a proof containing the date and place of the auction, the name of the successful bidder, the awarded good and the price paid. This proof constitutes the title of property over the goods sold, the sale itself having as purpose the transfer of the property right over a good from the debtor to the adjudicator.
    If the successful bidder does not pay the price within 5 days, the auction will be resumed, and the first successful bidder is responsible both for the decrease of the price during the second sale and for the expenses incurred for its organization and support.
B. Auctioning of real estate
  1. Preliminary formalities The
    the liquidator will establish the price of a property, either individually or in consultation with an expert. The expertise will also determine the value of the rights of usufruct, dwelling, or easement if these rights were tabulated after the registration of a path. The liquidator must obtain information on the real rights and other tasks that encumber the pursued building. The holders of these rights will be notified about the organization of the auction and will be summoned at the deadlines set for the sale. Within 5 days from the establishment of the price of the good, the liquidator will draw up, display or publish the sale announcement within the auction. The deadline for organizing the auction will be at least 30 days from the announcement and a maximum of 60 days.
    Those interested in participating in the auction or the obligation to submit 10% of the estimated value of the property within the established term.
  2. Conducting the auction
    In the first stage of the auction, the liquidator will read the sale announcement and any offers received until that date. If the property is encumbered by any of the above, at the first sale term the calls will start with the highest price offered, or if the offer is missing it will start with the price set in the publication lowered by the value of these rights. If the price obtained after the decrease of the rights is not high enough to cover the previously registered mortgage receivables, the liquidator will resume the auction the same day, for the sale of the real estate free of those rights. In this situation, the auction will start from the price mentioned in the sale publication. If even in this situation it was not possible to obtain the price at which the building was evaluated, the sale will be postponed for another term that will take place at most 60 days after the current auction. For this new term, a new publication will be made. At this term, the auction will start from the price of 75% of the one at which the property was initially evaluated. If the starting price of the auction was not obtained in this situation either, then the good will be sold at the highest price offered. The liquidator will draw up the minutes regarding the development and the result of each individual auction. If the starting price of the auction was not obtained in this situation either, then the good will be sold at the highest price offered. The liquidator will draw up the minutes regarding the development and the result of each individual auction. If the starting price of the auction was not obtained in this situation either, then the good will be sold at the highest price offered. The liquidator will draw up the minutes regarding the development and the result of each individual auction. Auction award
  3. In case of the auction sale of real estate, at the request of the successful bidder and with the consent of the creditor, the liquidator may establish that the price is paid in installments. The adjudication act will be drawn upon the basis of the auction report either after the full price of the good has been paid or only the advance in case the real estate has been sold with payment in installments.The adjudication act must contain the enforceable title against the debtor if the real estate is still in his possession. Thus, the successful bidder can obtain the forced handover of the building. This adjudication deed serves as a title deed for the adjudicator and based on it can be registered in the land book. The main effect of the adjudication act consists in the transfer of the property right over the real estate from the debtor to the adjudicator.Once the adjudication deed is registered in the land book, the adjudicator can dispose of the property, also from the same moment the building remaining free of any mortgages or other tasks. If the price is paid in installments, these charges are extinguished upon payment of the last installment. If the successful bidder does not fulfill the obligation to pay the price, it can be forcibly executed or the property can be put up for sale again, and in this case, the false successful bidder will be obliged to pay the expenses for the new auction and any price difference.

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