Buying real estate at a compulsory auction often means an attractive offer, but this transaction is unlike an ordinary sale: the winner faces strict deadlines, the guarantee deposit is at risk, and the fate of the rights registered over the property depends on who conducts the enforcement. A dedicated legal check before purchasing seized property is essential — we perform that audit and the buyer’s representation on Legal.ge.
How a Compulsory Auction of Real Estate Works
Enforcement against real estate is regulated uniformly: it covers land plots, buildings and a share in common ownership entered in the public registry. Enforcement is carried out by the enforcement bureau in whose territory the property is located; where interests conflict, the decision is taken by the chairperson of the Bureau. The forms of enforcement are registration of a compulsory mortgage, a compulsory auction and sequestration — the creditor chooses one of them and may change the form several times until the claim is fully satisfied. Where the debtor is registered in the public registry as the owner, the compulsory auction is held within 1 month of the imposition of the seizure, and in a separate case provided by law — within 2 weeks of the start of the enforcement proceedings. The forms and procedure of the auction are determined by an order of the Minister of Justice.