You have inherited a property with other people but you want to get out of this joint ownership? You don’t all agree on selling the property? The sale by auction will then be necessary. What is it? How does it work? We explain everything to you!
The conditions of an auction
A sale by auction often occurs in the context of an inheritance when there is joint ownership. It is therefore possible when the jointly owned property cannot be shared by mutual agreement and without suffering a loss. Or when in the sharing there are assets that none of the heirs want or can take. This concerns situations where the joint ownership leads to a depreciation of the property, the division makes operation expensive, the sharing causes harm to the joint owners, etc.
It takes the form of an auction that can come from the joint owners or a creditor, in the event of debts of one of them. In the latter case, it is an oblique auction. If the heirs do not wish to terminate the joint ownership, they will have to pay the debt. They then reimburse themselves for their share of the undivided estate.
Whether at the request of the joint owners or a creditor, the application for sale by auction must be made to a high court by summons. The application must contain all the information on the assets to be shared as well as the applicant’s intentions regarding the terms of sharing and the steps to be taken in the case of an amicable sharing.
It is the court that sets the starting price of the property and the conditions of the auction. It can also provide that if there is no auction, the sale price will be reduced according to the terms it has provided so that the property finds a buyer.
How does this type of auction take place?
When the court gives its approval for this auction, it appoints a lawyer who will draw up the conditions of sale. All joint owners must be aware of them before the day of the sale. Moreover, the sale can only take place after it has been advertised and visits have been made. If you are one of those people who wish to buy at auction,
When the lawyer has drawn up the sales conditions, it is submitted to the registry and a bailiff will draw up a report containing the description of the property and organize the visits.
All joint owners are informed of the date of the auction one month in advance. Each has one month from the auction to replace the purchaser by informing the registry. This prevents a stranger from entering the joint ownership.
Furthermore, the sale by auction obeys the same rules as for real estate seizures. As a result, each participant must be represented by a lawyer who will outbid on their behalf. And a deposit check of 20% of the sale price is mandatory.
Finally, once the auction is over and the ten-day bidding period has passed, the successful bidder goes to the notary to record the price. He is the one who takes care of the accounting and liquidation operations. Once the accounts are done, the notary proceeds to the division between the heirs according to the rights of each.
