Notary Valentina Rubertelli, president of the National Council of Notaries, provides idealista / news with useful tips for buying a house at auction while saving costs.
Why does a house go to auction?
There are three different reasons why a property ends up at auction. The first concerns individual citizens: because when one or more creditors are unable to pay, the latter have the right to retrieve their property. The second case concerns companies that in the event of bankruptcy see their assets alienated. The third case concerns public bodies: when they decide to sell a property they must do so through the auction which guarantees maximum transparency.
What are the three main tips to give to those who intend to buy the house at auction?
The first is certainly to read the court-ordered appraisal very carefully, and it would be even better to have it read by a trusted technician to verify the sanitization of any building abuses. The second concerns the certainty of having economic coverage or being able to access a mortgage. The third advice is to check who are the people who live in the house and make sure that the release of the property is foreseen in the notice of sale at the time of the award or, at the latest, the signature of the decree by the judge. The release will in any case be guaranteed, in case of non-spontaneous initiative of the occupier, through the intervention of the public force.
How do I document and what is the best way to look for an auction house?
Auction houses must be advertised both on the web and in printed newspapers; it is the judge who in the sales order indicates where. There are therefore specialized sites, the sites of the Courts, the site of the Notariat and, when it becomes fully operational, all the advertisements of the Italian Courts will be collected on a single Portal managed by the Ministry of Justice which, in turn, for the photos and the details of the case, will refer to the commercial sites enabled for legal advertising. One of these is the Notary Public Sales Portal.
Once I have identified the house I like, which is the step to follow?
Once the house has been identified, you must pay close attention to the notice of sale which contains an indication of the property offered for sale, the date, time and place of the auction, the base price, the measure of the minimum raise, the deadline. of submission of offers, the methods of sale (whether with or without enchantment, but now the latter method is the rule, the former the exception) and, finally, the website on which the appraisal report is published, which constitutes integral part of the notice of sale and which describes in detail the factual and legal situation of the property.
How is the basic auction price established?
The expert appointed by the Judge establishes this and reports it in the appraisal report that is published on the website indicated in the order of entry, in homage to maximum transparency towards the market and citizens. The minimum increase required in the tender is also established in the sales order.
Do you need to make a bid equal to the basic auction price or can you offer less?
The auction base is that set by the execution judge on the basis of the property appraisal and it is the judge himself who determines the amount of possible discounts that the delegated professional can accept after the first deserted auction. But be careful if you want to be sure that your offer is accepted you will not have to go down - during the bidding phase in a sealed envelope - by more than 25% of the value of the auction base. In fact, after the 2015 reform, real estate auctions - launched from 27 June 2015 - take place almost exclusively with the "sale without enchantment" procedure under which the bidder submits his offer in a sealed envelope which will not be considered effective if more than 1/4 lower than the base price indicated in the notice of sale. An example: if the set price is 100, those who want to participate in the auction must submit a bid of at least 75. Anyone who submits a lower bid will see it declared ineffective.
I decide to participate in an auction. What is the process I need to follow and what are the necessary documents?
For each house that goes to auction there is a sale notice where we find all the information necessary to participate in the auction. Widespread throughout the country there are also numerous associations of delegated professionals (many are notaries) who since 1998 have been dealing with this type of activity by delegation of the judges: these associations are perfectly structured to provide all kinds of information in person or even through them. websites full of valuable information.
But let's try to summarize the most important things to know: 1) each participant must submit, in the place and on the days indicated in the notice of sale, an offer in envelope who.