In this article we talk about how to buy a house at auction. If you are interested in approaching this world but do not know anything about this particular market, here is a base to start from.
Why does a house go to auction?
A necessary premise must be made, the properties that are sold by the court are the result of a procedure that is "triggered" by creditors (banks, individuals, suppliers, condominium administrators etc …) who have a right against the debtor, who he has not honored his debt, and he sees himself stripped of his possessions to satisfy the right of those who gave him credit.
There are 2 types of auctions: With enchantment and without enchantment.
Auction sale without enchantment
To participate in a sale without enchantment, it is necessary to go to the notary, the association or the sales representative indicated in the notice of sale published by the court, and deposit with the latter an ANONYMOUS sealed envelope containing:
form for the offer accompanied by a duty stamp (check if the sales representative has a standard form required)
valid identity document (identity card or passport)
CIRCULAR check equal to 10% of the value offered, made out to the sales representative.
Be careful because submitting the application is very important, the lack of a single document, or the incorrect compilation of a check / application form can cause your offer to be null and therefore exclude you from the possibility of purchasing!
The auction without enchantment differs from the auction with enchantment due to the fact that the award is final.
This means that if you have done all things right, and you are the only one who has submitted the offer, the property is yours! (obviously it will be some time before the keys are given to you, but we talk about this in another post ????).
If, on the day of the auction, there are more bidders, and the tender starts, you will have to try to win it with increases, and if you are the last bidder (with the highest price) then you will have your home!
The real estate sale with charm
In auction sales, the methods of presentation of the offer are identical to that without auction.
In order for the award to take place, it is necessary that at least one bid increase with respect to the base price or subsequently lowered is made, and each bid increasing at the auction must be equal to the amount expressly indicated in the order.
So what is the difference between auction with charm and without charm?
The main difference (and not just that) is that in the sale without auction, the award is provisional and becomes definitive after 10 days from the date of the auction. In fact, in the 10 days following the auction, anyone can make a purchase offer for the same property awarded, but the offer must exceed, by at least one fifth, the value achieved in the first award.
For both procedures, following the award, the balance must be paid in the manner and within the terms established by the notice of sale.
Are you interested in buying a house at auction in Verona? Contact me!