BUYING A PROPERTY BY AUCTION: THE KEY STAGES

Buying a property by auction: the key stages

Buying a property by auction before the Court of First Instance can offer interesting financial opportunities. Indeed, these sales often make it possible to acquire property for less than its market value. But they do require careful preparation and the support of a specialist lawyer.

THE INDISPENSABLE ROLE OF THE LAWYER

As part of a sale by auctionthe lawyer plays a central role. They accompany the buyer at every stage, from checking the documents to taking part in the auction. Their expertise is essential to understanding this complex process, not least because of the associated legal risks.

The goods are sold as is, without guarantee against hidden defects. This means that the buyer must be prepared to assume these risks.

FINANCIAL PREPARATION AND OVERBIDDING RISKS

Unlike traditional property sales, the auction is not subject to the suspensive condition of obtaining a loan. This requires rigorous financial preparation, including setting a strict budget and preparing two bank cheques, one of which represents 10 % of the hammer price.

What's more, even after winning an auction, a third party may bid higher within 10 days, which can complicate the acquisition.

INSURING YOUR PROPERTY FROM THE MOMENT OF PURCHASE

Once you've won the auction, it's advisable to take out comprehensive home insurance immediately to cover any potential risks. This step is essential to protect your investment from the outset.

Payment of the sale price must be made within two months of the auction hearing. This underlines the importance of early financial preparation.

In conclusion, the purchase of a property by auction can be an interesting financial opportunity. But it requires careful preparation and the support of a lawyer.

Buying a property by auction: the key stages

Also worth knowing:

Notarial property auctions

Notary sales take place in the following locations departmental chambers of notaries. To take part, you must give the notary in charge of the sale a bank cheque, known as a consignment cheque, at the beginning of the session.

It is equivalent to 10 to 20 % of the property's asking price. Although this is the best-known channel, it is not the one that offers the best deals.

Now you can take part in online property sales and bid in complete security! Once you have registered for an auction, you will receive electronic approval and a password.

You will have access to the specifications of the property online, and at the end of the sale the procedure will continue in the same way as a traditional transaction. You can easily take part in a house auction or a flat auction. 

State property auctions

The State regularly sells off rather unusual assets: barracks, stations and land. The rare homes put up for sale by the State are properties from the " vacant estates "In other words, they had no heirs. C

hese auctions take place at departmental prefectures or tax offices. To take part in these sales, you do not need to register in advance. All you have to do is turn up on the day of the sale with the required documents, and any bid over €7,500 requires the deposit of a deposit cheque representing 5 % of the bid. The advantage of state sales is thatno notary fees No fee is charged and the deed of sale is drawn up free of charge.

Judicial property auctions

Judicial sales are the result of judicial seizures, receiverships or divorces.

These sales take place in courts of law. This is the only procedure that requires a lawyer to attend the auction. Only he is authorised to place bids on your behalf.

You will need to give him :

-a signed mandate showing your maximum bid,

-together with the deposit cheque for 20 % of the amount of the hammer price.

Note that this is the channel that offers the most attractive deals.

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