What are legal sales?
Legal sales come from procedures activated at the Court to gain amounts of money by the sale of properties collection, to satisfy creditors. The Legal Auction is the instrument used by Courts to force a sale of real estates, to satisfy previous creditors. To guarantee the absolute transparency and neutrality of this way of sale, the law makes provision for the Auctions, which have to happen following the criterion of the “competition to the best bidder”.
What are the positive sides of this type of sales?
Everyone can take part to the legal sales, except for enforced execution against or for bankrupt
It does not need the help of a lawyer or another professional
As well as the price of adjudge, the only taxes (VAT or Registration Tax) are paid, with the law tax break (1° house, agricultural businessman, etc.)
The sale is not burdened with mediation taxes
The purchase is SURE because the transfer of the property is ordered by the Judge and realized by the Court
Where do auctions occur?
Auctions can be occur at the courtrooms of the Court or at the office of an authorized professional. After the reform, the Judge can authorize the sale to professional, such as Notaries, Lawyers or Accountants.
How do auctions occur?
Legal auctions can be of two types: sale by auction and sale without auction. Sale without auction: in this sale process, supplies are in a sealed envelope and have to be presented within the date and hour specified in the Decree of sale at the execution chancellor’s office of the Court or at the office of the professional, if there is a power of attorney (Notary, Accountant, or Lawyer). The proposal is SECRET (in a sealed envelope) and immediately binding for the bidder. The proposal is IRREVOCABLE, so if there is only a bidder, he is required to proceed the purchase, or the deposited bail shall be final loss. If there are more bidders, it continues starting with the highest proposal and carrying out the smallest relaunches stated in the Decree. If it is adjudged, this is immediately FINAL. The sale by auction: the participation is extended to anyone, except for debtor. The proposals have to be presented with a petition, in official stamped paper of € 14,62, and have to be presented within the date and hour specified in the Decree of sale at the execution chancellor’s office of the Court or at the office of the professional, if there is a power of attorney (Notary, Accountant, or Lawyer). In the sale by auction the proposal is presented with a petition and therefore not secret. If there is only a bidder, and he does not appear at the hearing for the bids, one tenth is taken from the deposited bail. The adjudge IS NOT FINAL in this sale process. It can occur that there are new bidders. The sale of new proposals is considered if:
What happen if the new supplies do not respect the qualifications?
They are INADMISSIBLE, and the adjudge of the first competition becomes FINAL. If one or more proposals are correct, the Judge will announce a new competition between the temporary adjudged, or the new bidders. This new competitions is available also to the participants of the first competition, as long as they complete the fist deposited bail (art. 584 civil procedure code)
How do I take part to an auction?
It is real simple to take part to a legal sale for the purchase of a property. After having chose the property, the bidder will consult the notice of sale published on the website to know if he has to take part to a sale without auction or to a sale by auction. If it is a sale without auction, the bidder will prepare a written request, including the following data:
The account payee only cashier’s check as bail and deposit of costs have to be attached, risking inadmissibility, to the request. To make correctly the cheque out, the sale note published on the website, where there is the indication of heading to the Judge of execution or to the Delegate Judge that is the Delegate Professional, is analyzed. The request, furnished of a tax stamp of €14,62, together with cashiers’ check, has to be inserted in a closed and sealed envelope, without showing the name of bidder on the outside. It is important that the envelope containing the proposal is deposited within the date and time specified in the sale note as deadline for submission.
The non-compliance of the deadline, will involve the inadmissibility of the proposal with the resulting impossibility to take part to the auction.
The deposit have to be implemented at the chancellor’s office of the Court, if it is sold before the Judge, that is at the office of the Professional (Notary, Lawyer, Accountant) if it is an authorized sale. In the sale without auction, being a secret proposal contained in the envelope, will be opened the day of the sale by the Judge of execution that is the authorized Professional. If there is only a bidder, the Judge will adjudge the property to him, even if the bidder is not physically present; if there are many proposals, considered efficient, the Judge will proceed to a competition between the bidders who can relaunch. The adjudge will be in favour of who offered the highest price, defined as best bidder.
How do I take part to the sales by auction?
The participation processes are similar.
Also in this event, it is necessary to prepare the request of participation, containing all the expected elements for the sale without auction. The process and the places of deposit are the same.
The main difference is based on the fact that the proposal is not secret and the request of participation is an instance, for which presentation the requirements of secret have not to be observed for the sale without auction.
Also in the sale by auction, to the sealed instance, the cashier’s check have to be attached as a bail equal to the 10% of the basic price of the auction as stated in the notice.
To sum up, in the sale by auction there is not an offering, but a participation to a public auction.
If there are many proposals, a competition with minimum relaunches and as result of the highest relaunch, the judge will go on record the adjudge.
In the sale by auction the adjudge is temporary, other interested subjects, within 10 days from the adjudge, can open the period of price increase, presenting a rising offering.
Where can I find the needed information?
The advertisement of the judicial sales is disciplined by the article 490 of the civil procedure code. The sales have to be advertised on greater local diffusion magazines, and in specific websites, written in a list registered at the Ministry of Justice.
The advertisement have to take place at least 45 days before the established day for the auction, the sale note has to be affixed for three consecutive day in the register of the judiciary office, in front of which there is the executive procedure. Today, the Italian Courts use the typically commercial instruments of divulgation, as for instance: television channel, magazines, free press and post of sale notes. These methods of advertisement represent an important progress through a market that until a few years ago was a quality of experts of the sector.
What are the documents to consult?
Documents related to an auction are: the Decree or sale note, the report also called Technical Consultancy of Office, planimetries and photographs of the property.
The Decree or sale note is the document written by the Judge or by the representative professional, where information and formality to follow to present proposal are contained.
Normally the following information are contained, useful to the presentation of the proposals:
Moreover, it specifies:
Modes and conditions of sale without auction.
The report is carefully examined, because it is an important source of finding of the main information, such as:
How do I have to do to see the property?
You can visit the property with the help of the KEEPER.
The name and the phone number of the keeper are reachable in the Decree or in the sale note. Calling him, it is possible to reserve a visit. The keeper is a prepared person, available to give information on the legal status of the property and his figure is real important, because he represents the person who for the first time put us near the interested good.
What happen after the final adjudge?
The cheque deposited as bail will be immediately give back to all the not adjudged bidders.
The adjudged, instead, has to deposit the price, deducted from the deposited bail, within the final deadline specified by the Judge in the sale note.
Be careful that the missed payment of the final payment within the deadline, imposed by the Judge, will cause the loss of the adjudge and the requisition, or better the loss, of the deposited amount as bail.
Many Banks agreed with the majority of the Italian Courts to give subsidised rate mortgage directed to the purchase of properties to judicial auctions.
The execution Judge issues the decree of transfer of the property in favour of the adjudge.
The decree of transfer is the title of property, equal to the buying and selling but with the advantage not to pay the notary fee.
The only registration tax with the tax breaks considered by the law, if it is an example of purchase of the first house. He has to pay the costs of transcript of the purchase at the Public real estate Registers at the low price of about €200,00.