Skip to main content

Practical tips for attending a real estate auction

By February 17, 2022subasta
Consejos-prácticos-para concurrir-a-una-subasta-de-bienes-inmuebles

It is possible that you have learned that the property of your dreams has been put up for auction as part of an enforcement procedure against its owner or that, not being the ideal property, you have decided to invest in a property that (a priori) can be acquired for a price substantially lower than the market price. For all these cases we present in this article a series of practical tips for attending a real estate auction.

The first step must always be the formalization of the registration in the page, simplifying the steps notably if you have a digital certificate. It is important to indicate that, since September 1, 2018, all auctions are carried out through the BOE website.

The registry will allow access to relevant information that will allow to correctly form an opinion about the decision to invest or not: the edict of the Court, registry identification of the property, identity of the executor and the executed, auction value of the property, amount that is claimed through the executive procedure, etc.

It is usual that the simple note of the property in question is not accompanied, so we recommend to go to the web site or to the Land Registry to obtain the mentioned simple note and to know all the details of the property.

If the decision is in favor of the investment, it is an indispensable requirement to be a bidder, to make a deposit of 5% of the value of the property for auction purposes. To do so, it will be necessary to enter the IBAN code of an account of which the bidder is the holder in a collaborating entity.

Regarding the way to make the bid, it is possible to make it by means of a bid reservation or without it. In the first case, if, in spite of a higher bid, the property is not finally awarded to the person who issued the bid (for example, for not paying the difference between the deposit and the adjudication value), the successive bidders with the highest bids may be awarded the property.

In case of bidding without reserve, the deposit will be returned as soon as the non-award of the property has been verified.

In the first bid, it is necessary to identify whether the bid is made in one’s own name, on behalf of a third party or in the name of a community of property.

Next, it will be essential to define the strategy to be followed by the bidder, which will depend on the number of bidders, the attractiveness of the property, the interest in its acquisition, the pending time for its completion, etc.

If you have finally been awarded the property at auction, we recommend that you follow our page for practical advice for the successful bidder of a property at auction, which will be the subject of our next publication.