Repeated and Re-Auction: What the Difference Means
In enforcement proceedings the compulsory realization of seized property takes place through a public auction, and the failure of the first auction does not mean the end of the process. The Law on Enforcement Proceedings distinguishes two scenarios: a repeated auction is held where no winner was revealed at the auction, and a re-auction where the winning person did not pay the price of the property within the period established by law. The difference between these two routes is practical: under Article 76 of the law, a re-auction is not counted as a repeated auction.
The realization of movable property takes place according to the rules established by Chapter XIII of the law, taking into account the specific requirements concerning auctions. For a creditor, a debtor or a prospective buyer, knowing these rules matters because the announcement of a repeated or a re-auction, the repeated valuation and the cancellation of results each occur under different conditions.