Real estate judicial auctions what you need to know – idealista / news

After the climax of the pandemic, the real estate auctionsi are on the rise. In fact, they are expected for 2023 300,000 auction experiments. Francesca Cardia, trainer and expert in the sector at national level, she reveals some curiosities about the world of real estate auctions in Italy. Here are six things that you need to know about real estate judicial auctions and that you probably don’t know

• The former owners of foreclosed houses rise in priority in the ranking for the assignment of public housing.

According to Presidential Decree 616/1977, the State implements the national planning in the public housing sector, but the administrative functions concerning public housing housing are transferred to the regions in concert with the municipalities that provide for the assignments. For example, the Lombardy Regional Regulation No. 1 of 2004 at Art. 14 titled “Assignment in derogation from the ranking” provides in the first paragraph that “The municipality that launched the call, in derogation from the position in the ranking or in case of failure to submit the application for the purposes of the last published ranking, provided that the requirements for access to the ERP referred to in Article 8, may order with a specific act, as a matter of urgency, the assignment of an ERP accommodation to households that: a) must forcibly release the accommodation in which they live in following an executive order and it is not possible to make up for the housing arrangement of the family unit according to the times provided for the ranking except for eviction for arrears of ERP housing and / or illegal occupation “. We remind you that the Transfer Decree issued by the Execution Judge, with which the ownership of the property awarded in the auction is transferred, is an executive measure with which it is ordered to release the property in the availability of the new owner.

• The costs of the justice of the auctions are borne by the debtor and are charged in prededuction on the proceeds of the auction.

They increase with the passage of time until the conclusion of the enforcement procedure.
This is why it is important to intervene immediately to end the auctions as soon as possible, with the adjudication or with the sale of the balance and excerpt for example. The Observatory of the Study Table on Italian Executions conducted an analysis which showed that the costs of justice can reach up to 25% less on the hammer price.

• Even after the attachment, the debtor remains the owner of his property.

In fact, the foreclosure deed is transcribed in the public real estate registers, like a mortgage, but it is not a title for the transfer of ownership. Therefore all related charges remain with the debtor owner (condominium, taxes, etc.) until the decree of transfer of ownership by the judge, or the deed of sale by the notary (Balance and Excerpt) intervenes . Furthermore, all the costs of justice relating to the attachment and auction are charged to the hammer price, which therefore, reduced in this way, will serve less to cover the debts. The costs of justice increase exponentially over time: this is why the award that takes place in the shortest possible time helps the debtor to obtain a greater balance of his debts. The advertisements of the real estate auctions contribute to the so-called Auction livening: the system to bring as many people as possible to participate in the auction, raising the hammer price in favor of the debtor (but also the creditor).

• The auction does not necessarily cancel all debts.

If the proceeds from the award do not cover them all, the remainder is always due by the debtor.
This point is related to the previous one. In fact, the hammer price, minus the legal costs, serves to cover the debts. But if it is not sufficient for all creditors, the remaining difference is always due. These debts are classified as unsecured, i.e. unsupported by a real estate guarantee. The remaining debts are the reason why the reporting in the Central Credit Register as “bad payer” remains active, until 36 months have elapsed from the balance of the last debt.

• The auction does not necessarily cancel all liens, but only mortgages and foreclosure.

There are prejudicial transcripts which, if present, cannot be canceled by the Judge in the Transfer Decree. In Italy the magistrates “work” by competence. The Execution Judge is only competent for the execution itself, with the corresponding attachment and mortgages, but not for any other transcripts. For example: preliminary sales, criminal seizures, housing rights, etc.

• In the event that the successful bidder does not make the due balance of the price, not only will he lose the deposit paid, but he will also have to pay any difference with the new subsequent award.

The payment of the hammer price represents a necessary prerequisite for completing the purchase of the property of the expropriated property from the successful bidder. In fact, only after the payment of the price does the judge issue the Decree of Transfer of the asset. If the successful bidder fails to settle the price, he will incur the provisions of article 587 of the Code of Civil Procedure: “If the price is not deposited within the established term, the execution judge by decree declares the forfeiture of the successful bidder, pronounces the loss of the bail as a fine and then orders a new auction “. Then a new auction will be launched, but the penalty of the last paragraph of the same article is imposed on the defaulting bidder: “If the resulting price [dalla nuova asta]combined with the confiscated deposit, is lower than that of the previous auction, the defaulting contractor is required to pay the difference “.