More and more properties are being foreclosed on. The most common reasons for changing ownership are divorce, unemployment and excessive indebtedness. The purpose of the compulsory auction procedure is to satisfy the creditor from the proceeds of a property through compulsory enforcement. The procedure and other details are regulated by the law on compulsory auctions and compulsory administration (ZVG). The compulsory auction is generally carried out by the local court in whose district the property to be auctioned is located.
Versteigerungsrecht
In addition to land, property-like rights and ships registered in the shipping register can also be forcibly auctioned off in order to use the proceeds to pay off the owners’ debts. The foreclosure procedure is only initiated at the request of a creditor. To do this, the creditor must submit a title with an enforcement clause to the local court. The court orders the compulsory auction of a property through an order. This decision is forwarded by the enforcement court to the land registry office with a request to enter a compulsory auction notice for this property. With this entry, the owner’s control over the property is withdrawn, i.e. he can no longer sell it privately. The entry of the compulsory auction notice therefore results in a ban on sales in favor of the creditor who applied for this procedure.
The advantage of purchasing a property through compulsory auction is, in addition to the possibility of purchasing a property for significantly less than its value, among other things, the elimination of broker and notary fees.
Since compulsory auction law is very complex and requires compliance with many requirements and conditions, anyone who wants to pursue or participate in compulsory auction proceedings should urgently seek the advice of a lawyer in order to rule out any problems or procedural errors from the outset.
Take advantage of the experience of the STEINWACHS law firm in providing legal support for countless foreclosures for both those affected and the purchasers.
Take advantage of the experience of the STEINWACHS law firm in providing legal support for countless foreclosures for both those affected and the purchasers.