THE EVOLUTION OF THE PROPERTY AUCTIONS
Years ago, access to real estate auctions was a very complicated procedure. The limited access to documentation on the property auctioned and a high initial deposit required (30% of the value of the property), resulted in no bids being submitted at the time of the auction, and as a result, the bank or entity ended up repossessing the property for up to 50% of the auction value.
Currently, since the entry of the 19/2015, Law of July 13, this reform is done in the field of the Administration of Justice and the Civil Registry, auctions have been executed electronically, and there for becoming a reliable tool and a good option of investment and to purchase at a price below the real estate market.
WHY DOES A PROPERTY GO TO AUCTION?
After the economic crisis of 2008, foreclosures increased due to defaults, in payments, which triggered an increase in the number of auctions.
The auction is the last alternative to satisfy mortgage loans and debts to other creditors. There are other alternatives such as a dacion in pago, that means to simple hand the property back, always via a notary public or also to find a third party to purchase the depth and there for continue with the payments. However, in practice the auction is still the most used procedure.
REQUIREMENTS TO PARTICIPATE
- Provide us with a copy of your Passport / ID (both sides)
- Indicate the maximum amount you wish to bid.
- Make a bank transfer as a provision of funds amounting to the 10% of the amount claimed at auction. Making this deposit is mandatory and without it, you cannot participate. Once the deposit is received, we will deposit at the courthouse in your name and we will send you a copy of this transaction.
WHAT HAPPENS IF YOU DO NOT WIN THE AUCTION
In the case that you were not the winner of the property subject to the auction, the provision of funds received will be returned in full, minus the amount of € 500.00 plus I.V.A for the services rendered.
The payment of our fees will be effective when the Court releases the payment.
WHAT HAPPENS IF YOU WIN THE AUCTION
If you happen to be the winner of the auction, the same day we will send you the certificate of “ best bidder “, with this document states you have won the auction !
Two days after receiving the certificate of the highest bidder, we will go on behalf to the court to present the formal request on your behalf for the “title document and the document of cancellation of previous charges".
For this, you will need to previously issue a power of attorney for representation, in favor of the attorneys Pellicer & Heredia and the barrister Don Josep Bonet.
Next, and in a period of approximately from 2 to 6 weeks, the court will notify us that you can proceed to pay the rest for the purchase of the property, and at this moment Jávea Homes fees will be paid in full.
After making the payment to the court and sending a copy of it, the court will issue the necessary documentation stating that you are the new owner. Then, we will present title to the tax office and land registry for its settlement and registration. This process can take up to 2 months.
At the time of payment of the I.T.P, we can ask the court to give us date, day and time for the physical visit to the property by the judicial comity ( the court clerk, a policeman and a locksmith ) to give us possession of the property.