There are many types of auctions, for example real estate or antiques auctions. As you can see, these auctions can be classified according to what is being sold, for example: household effects, antiques, real estate. But also based on the reason: voluntary auction or foreclosure auction. At Kooijman Autar from Rotterdam, we offer help and guidance before, during and after various types of auctions.
Why a notary in real estate auctions?
Although notaries supervise or guide auctions in many cases, the involvement of a notary in a property foreclosure auction is mandatory. A foreclosure auction takes place at the request of a creditor. This is in many cases a mortgage creditor, but it can also be a distraining creditor whose attachment has become enforceable.
What is foreclosure sale in real estate auctions?
In a foreclosure sale, the sale is not made by the owner but by the creditor. This creditor gives no guarantees as to the condition of the sold property. Nor does the owner. As a result, it is very important for an auction buyer to ascertain the actual and legal condition. After all, he cannot sue either the owner or the auction vendor if the purchased property does not meet expectations. Thus, there are some other regulations that ensure that buying at auctions, for real estate for example, is not easy for everyone. A resolutive condition financing is not possible. There is always a risk that there will be tenants anyway and the deposit plus some costs must be deposited very soon after the sale. With a notary from our Rotterdam office, preparing for such auctions becomes a lot easier.
How does an auction take place?
Auctions, such as for real estate, take place in a public session. To get as many interested parties at the auction as possible, the auction is announced in newspapers and through a number of websites. Through those advertisements and the website, the special auction conditions can also be consulted. These contain all known details of the object. In that session, bids are first made by auction, with higher bids being mentioned each time. The person making the highest bid is the buyer, unless there is a higher bid at the auction. Next, bids are made by turn-down. The auctioneer then starts at a decent amount above the highest bid at auction bidding and names a lower amount each time. He does this until someone calls "mine" or he has come to the amount of the highest bid at auction.
An underbid at a foreclosure auction
At a foreclosure auction, there is the option of making a private bid up to a certain point before the auction begins. If the owner or the auction seller wants to accept this bid, they can submit it to the preliminary relief judge. If this judge rules that the bid may be accepted, it will ultimately not come to a public auction but will be delivered via a deed of transfer.
Contact us for more information
Sometimes it is interesting to come to a voluntary auction. This can be conducive to the price. But it depends entirely on the property and the possible candidates. For more information about buying or selling through auctions, for example real estate, please contact us by calling +31 (0)10 285 88 88. We will be happy to advise you.
pkooijman@kooijmanautar.nl
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