The purchase of real estate by Private Enforcement Agent is an excellent opportunity to make a deal at a price below the market and at the same time to acquire the property you want, free from any real burdens. Participating in and winning a public auction can be a serious challenge, featuring difficulties and underwater stones. Our team of experts, with years of experience in public sales and the executive process, will advise you at every step, ensuring the seamless participation and purchase of your desired real estate.
What do you need to know about the public sale by the private enforcement agents?
The properties that bailiffs sell belong to debtors for their debts against third parties in connection with their private legal relationships.
Property may be owned by other persons who have provided them as a guarantee for foreign debt. Judge the Contractor enforces a foreclosure and consults the Registry Agency for any other burdens on the property. Where there are weights, other creditors are also notified of the proceedings being initiated to join their claims.
An inventory of property and an evaluation is made. Determine the starting price from which the sale will begin as well as the day and place of bidding.
After one week, the bailiff is obliged to prepare a public auction announcement. It shall be placed in the office of the private enforcement agent, in the building of the district court, in the municipality or in the town hall where the property is located, on the property itself and shall be published on the website of the district court at the place of performance, at least one day before the date specified in the announcement day to start the sale.
The initial price of a property exported to a public sale is 80% of the valuation, which is prepared by an appraiser, but the first public sale cannot be lower than the tax assessment.
Bulgarian or foreign persons, as well as companies, may participate in the bidding process.
They are not eligible to participate – the debtor, his / her legal representative, the managers of the property sold / if appointed / the bailiff, as well as employees of his office, judges, prosecutors and investigators.
Bidding.
If you have liked a property, you can make an offer to buy it. To bid in the auction you need to deposit 10% of the declared initial price.
Together with the bidding offer, you submit:
- declaration of origin of funds (only for sums greater than BGN 30,000)
- an import note for the deposit you have deposited
The listed documents areplaced in a sealed envelope and submitted. Bidding lasts for 1 month or within the deadline specified in the notice.
On the first working day after the one-month term the tender is held as a judge, the contractor shall record in the minutes all the submitted proposals. The bidders are read and asked whether they are willing to bid orally. The bidding step in this case is at the rate of one deposit.
Judge contractor announces the buyer with the highest bidding offer made.
Within two weeks, the Advertised Buyer has the obligation to submit to the Contractor’s account his proposed price by deducting the 10% initial deposit.
If the buyer does not pay the amount within this time limit, the adjudicator invites the next buyer who made the offer until all bidders have been exhausted. ATTENTION: A borrower who has agreed to be a buyer but does not pay the price within the two-week period loses the deposit / deposit paid by him / her.
When the buyer submits the proposed amount, the contractor shall issue an awarding order. It is only then that the other buyers who have not won the auction are returned.
The buyer is placed in possession after the entry of the assignment protocol. For the input, the judge executes the record.
If the first sale is unsuccessful (no buyer or no one has deposited the specified amount), the contractor arranges a new public sale with a starting price of 90% of the first sale price. The conduct procedure is the same.
The property is acquired without real burdens. Only if there is a right to use is preserved.
The buyer becomes the owner of the property from the time of the awarding order. The Contracting Decree should be entered in the Registry Agency – Property Register.
Costs of the buyer who has won the public bid
- 1.5% (1.8% VAT included) of the awarding judge, the amount being not less than 50 BGN and not more than 3000 BGN.
- Tax acquisition of the property, each municipality determines it independently, as for Sofia Municipality amounts to 2.5% of the purchase price.
- 0.1% of the purchase price or the tax assessment, but not less than BGN 10 fee for the Registry Agency
If you would like to purchase a real estate from a private enforcement agent, send us a request with the parameters you want and we will find the best offers for you.
