What do we need to know about estates from a private bailiff?

Some people, when in doubt about what home to get, go beyond the basic property sales, through agencies, brokers also choose properties that are auctioned by a private bailiff. If you are  decided to buy  a property from a private bailiff from a public sale is advisable to familiarize yourself more thoroughly with the information on this topic.

What is  the role of the private bailiff?

A private bailiff is a person to whom the state entrusts the enforcement of private claims. It is registered with the Chamber of Public Prosecutors. In order for a private bailiff to be able to collect claims that are owed, he has the power to levy attachments on bank accounts of wage earners as well as to foreclose on immovable properties.After the foreclosure of the property, the auction procedure begins through which the properties are sold.

 What is the auction procedure?

• First of all, you should check what are the conditions for participation in the auction.
• To register to participate in the auction- you must fill in and submit the appropriate participation form.
• The auction- is held at the district court building and lasts for one month. A date and time is set where the auction itself will be held and bidders compete to purchase the property and raise the price until a final price is reached.
• The auction begins with oral bidding, and after the last bid is opened, it goes to open bidding and each bidder has the opportunity to bid 10% of the starting bid for the property.
• It is also a prerequisite that you have secured the remaining 90% of the price, in case you win the bidding for the property.If otherwise you fail to get the remaining 90% in the next two weeks, the property is offered to the highest bidder and you lose the 10% paid.

• If you have won the auction you have two weeks in which to pay the difference between your bid price and the deposit you have already paid.
• If two buyers have offered the same amount, then a lot will be drawn between them. If the first sale is not successful, the bailiff will schedule a new public sale with a starting price of 90% of the price of the first sale.

What happens next when a person is declared a buyer?

• When there is already a chosen purchaser for the property the private bailiff issues a decree by which the new owner is put into possession.
• On completion of the procedure,the property officially passes into the ownership of the new owner.

 What are the pros and cons of buying a property from a private bailiff?

Pros:Property offers  advertised by a private bailiff have their positive aspects. They are extremely attractive and affordable even for buyers who have a more limited budget. Compared to the usual market value, properties for public sale are significantly cheaper. Also, the overall conduct of the procedure ensures legal certainty, as the auction follows established rules and ensures a fair process for all participants.

Downsides:Despite the initial advertised price, there is no guarantee that you will purchase the property from the CSE at a low market value unless you have a lot of competition at the bidding. Another important clarification,which you should know is that won at auction by a private bailiff, can not be paid using a mortgage loan. The repayment period is very short, and by law the announced buyer is obliged to repay the value of the property within 14 days after the auction is closed. If the price is not paid within the specified period, the next highest bidder will be selected as the buyer.