Buying a real estate property at an auction: how does it happen?

Real estate auctions are unknown to most of the people. They can nevertheless be interesting, as long as one is properly informed of the very specific rules that frame this mode of purchase. There are different types of real estate auction sales. There are three supply chains of auctions, each with its own specificity: notarial real estate auctions, judicial real estate auctions, state real estate auctions.

Getting ready for an auction

Visits are already scheduled!

You will naturally wish to visit the property that you covet. To do this, be aware that you must make yourself available, because the dates and times of visits are determined and imposed by the person in charge of the sale.

Do not neglect the specifications

Remember to carefully take a look at the specifications. You will be able to take note of essential information: the expenses to the load of the purchaser, the delay of payment of the price, as well as the characteristics of the good: descriptive, surface, servitude, charges of co-ownership…

Make an appointment with your bank, even if it is not mandatory

Know that unlike a classic purchase, that of a property auction is not conditioned to obtain a mortgage. However, if you become the purchaser of this property, you will not be able to cancel the sale, and you will be obliged to pay the price.

How does the session take place?

To begin, you must bring several documents to attend an auction session: a check for deposit, proof of identity and proof of address. Subsequently, you are given a numbered badge that identifies you during the auction. It goes without saying that this rule applies to your lawyer during a judicial auction sale. If you become the purchaser of the property offered for sale, you will proceed to the signing of the deed of sale at the end of the session. However, if you have not won the auction, you will recover before leaving the check deposit that you had given at the beginning of the session.

At the end of the sale, what happens?

On the same day of the session, if you have become the successful bidder, consider insuring it right away. Once the auction has passed, you do not immediately own the property, because within 10 days after the sale, it is still possible to outbid 10% of the price of good, except for state sales. After this period of 10 days, you are liable for the balance of the price within 30 days of the sale for state sales, within 45 days for notarial sales and within 60 days for judicial sales. Beyond the time limit, penalties are imposed and increased beyond 75 days. During the period specific to the chain of purchase of your property, you will have an appointment with the notary to pay the balance of the price. It is at the end of this meeting that the notary will give you the keys of the property and that you will be officially the owner.

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