Auction of real estate

General information for bidders

Auction of immovable property

Publication:
According to the legal regulations, the publication in the Official Gazette of the State of Brandenburg takes place two to three months before the appointment and by posting on the court panel. In addition, all auction dates will be published approximately 4 weeks before the date in the local daily newspapers.

Market value:
The published market value is usually determined by the court on the basis of an expert opinion. The report can be viewed after the appointment at the office of the foreclosure department.

Lowest bid:
The lowest bid will be announced by the court in the auction date. It sets the amount that must be bid at least so that the bid can be accepted by the court. The lowest bid consists of two parts:

existing rights that must be borne by the winner;
Costs of the proceedings and claims according to § 10 para. 1 no. 1-3, § 12 no. 1 and 2 ZVG. It should be noted that the only bid offered in the auction at bidding is the cash offer (§ 49 Abs. 1 ZVG). The existing rights must be added to the bidder – in his thoughts – in the calculation of what he wants to offer economically.
Auction date:
The auction date is public. Each bidder must identify himself by a valid identity card or passport. If several persons want to offer jointly – as a bidding consortium – then the party relationship must be indicated (for example, spouses of ½ share each). The representative of a legal person (for example GmbH, AG) or trading company (KG, OHG) must prove his power of representation by submitting a current excerpt from the commercial register – usually not older than 4 weeks. Anyone who wants to offer power of attorney to another must submit a public or publicly certified bidding mandate (notary). The bidding time is at least 30 minutes, but ends only when no more bids are submitted. In order to get to know the expiry of an auction date, it makes sense to participate in other dates prior to the purchase of an object for information.

Bailout:
In foreclosure proceedings, there are parties who can file an application for security in the deadline. Bidding security is usually 10% of the market value, but at least the cost of the procedure, which will be announced at the auction date.

Cash payment is excluded!

Security can be provided as follows (§ 69 ZVG):

Bundesbank checks and crossed checks issued at the earliest on the third working day before the auction date. This only applies if the checks are issued by a bank or the Bundesbank entitled to conduct banking business within the scope of this Act (ie in the Federal Republic of Germany) and are payable domestically.
single, unconditional and unlimited bank guarantee of a credit institution (see a) if the obligation is to be fulfilled domestically. However, this does not apply to bids of the debtor or a newly arrived owner.
Transfer to an account of the court cashier, if the amount is credited before the auction date and a proof of this is present in the appointment
The bank details and necessary information can be obtained from the local district court.

Property transfer in the land register:
The first owner becomes owner with the award of the contract. From this day, the burdens and benefits of the auction object go to him.
The entry in the land register, however, takes place only when

the distribution date has taken place (about 6 to 10 weeks after the auction date),
the contract has become final and
the clearance certificate of the tax office is available to the enforcement court. The first owner has to pay the land transfer tax on the highest bid (cash bid and existing rights).
The transfer of ownership will be initiated by the auction court after having met these conditions.

Payment of the bid:
The cash offer must be corrected before the distribution date. With regard to payment options, the first-party receives a separate leaflet from the court.

Costs for the first person:
The winner has to bear the following costs:

Fee for awarding of the contract (to be charged by the Auction Court)
4% interest on the cash offer from the surcharge up to one day before the distribution date
Land transfer tax (depending on the federal state)
Fee for entry in the land register (levied by the land registry)
Termination of tenancy and leases:
The renter is entitled to terminate rental and lease agreements at the first permissible date – calculated from the date of acceptance – in compliance with the statutory notice period. If the deadline is missed, the contract continues to run for an agreed period. In Wohnraummietverhältnissen find termination provisions of the Civil Code application.
In disputes, the trial court decides in general. The right of termination does not apply to auctions carried out for the purpose of lifting the Community (divestiture auction). The previous owner and the persons belonging to his household have no protection against dismissal. By means of an enforceable copy of the award decision (issued by the Auction Court), the eviction by the judicial officer is possible. A separate eviction notice is not necessary.

Warranty:
The landed property registered in the land register is auctioned in its actual existence. There is no liability for defects. The object is auctioned off as it stands and lies.
The court is not liable for the accuracy of the applications and the information provided by the tax authorities.

Note
This information does not constitute advice. In order to obtain binding information on tax aspects and the effects of a real estate investment on your personal tax situation, we also recommend that you consult your tax advisor.

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