---
title: "Buying Seized Real Estate at Auction — Buyer Representation"
url: "https://legal.ge/en/service/enforcement-services-en/buying-seized-real-estate-at-auction-buyer-representation-en"
field: "Enforcement Services"
description: "Buying seized property at a compulsory auction: deadlines, guarantee, fate of rights and third-party risks — buyer representation. Legal.ge."
updated: "2026-10-15"
publisher: "legal.ge"
---

# Buying Seized Real Estate at Auction — Buyer Representation

> Source: legal.ge, https://legal.ge/en/service/enforcement-services-en/buying-seized-real-estate-at-auction-buyer-representation-en

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.

## The Stability of the Auction After Announcement

From the day the compulsory auction is publicly announced, termination, suspension or postponement of the auction or of the enforcement proceedings, and release of the property from seizure, are not allowed — except in the exceptional cases established by law. This means that the chance of winning an announced auction is real, and the purchase plan must be ready before the announcement. The debtor, or another person acting in the debtor’s interests, may deposit with the Bureau’s account, before the announcement, the amount needed to cover the fee, the enforcement costs and the creditor’s claim; an amount deposited after the announcement is distributed after the auction ends, and the surplus is returned to the debtor if no other proceedings are pending.

## The Winner’s Obligations and the Guarantee

The winner of the auction must pay the full price of the property within 10 calendar days of the end of the auction. After full payment the National Bureau of Enforcement issues an order on the right of ownership of the property purchased at the auction. If the price is not paid within the established period, the winner loses the amount submitted as a guarantee on the day of the auction, which passes into the Bureau’s ownership; the Bureau issues an order annulling the result of the auction and, within 3 days of its issuance, announces a new auction, which is not counted as a repeat auction.

The full text is available on legal.ge after signing in: https://legal.ge/en/service/enforcement-services-en/buying-seized-real-estate-at-auction-buyer-representation-en

### Within what time must I pay the price?

Within 10 calendar days of the end of the auction, in full.

### What happens if I fail to pay in time?

You lose the guarantee deposit — it passes to the Bureau; the result is annulled and a new auction is announced within 3 days.

### Which rights are extinguished on the property?

With an unsecured creditor the registered rights remain; with a pledgee, later-registered real rights are extinguished. Earlier rights always remain.

### Can the auction be cancelled after announcement?

No — from the day of announcement termination, suspension and postponement are not allowed, except as established by law.

### What is the risk of a third-party claim?

Upon realization the purchaser becomes the owner; the third party claims damages from the debtor. An audit reduces the risk in advance.