How do I sign up for a real estate auction?

Signing up for an auction can be an option for companies looking to invest their money, buy a property to set up offices at a lower price or find an SCPI. What are the different steps you need to follow in order to sign up for a real estate auction? Overview.

Step 1: Find out about real estate auctions

Before signing up for real estate auctions, it is essential for the business looking for real estate to find out about the planned auctions.

For this, there are specialized platforms on the Internet and make it possible to achieve lots of information about planned real estate auctions. Once on the Vench real estate auction site, the company can thus perform its search by specifying:

  • Regions;
  • The targeted department;
  • The possible city;
  • The relevant geographical radius;
  • The desired type of property, the number of rooms and its surface area (apartment, office building, business premises, shop, etc.);
  • The desired price;
  • The relevant court if it is a judicial auction.

More results will be displayed according to the selected criteria, allowing the company looking for a property to know the date of the auction, to find some pictures of the property, a description (subject to subscribing to the consulted site) and above all, visit dates and times for interested companies and individuals. Note that these visits are grouped and not individual, and there are a maximum of three. This will then be an opportunity to be able to consult the important documents about the property to be sold at auction : specifications regarding the sale, diagnoses, any easements, lease if the property is rented out, reason for the auction, possibility of higher bids, etc.

Step 2: Prepare your financing to participate in the auction

By participating in an auction, the company that is inclined to buy real estate must be surehave the funds available to honor their purchase.

The lawyer in charge of the auction will ask a financing plan hereafter including:

  • A preliminary agreement from the company’s bank. This agreement specifies the maximum amount that the company can borrow.
  • The necessary supporting documents regarding the available contribution.

In connection with a real estate auction, the company can not request the conditions for obtaining a loan (withdrawal period, i.a.). This option only applies to the purchase of traditional real estate.

Finally, auction fees must be taken into account. These are costs that relate to the place where the real estate auction took place. To these costs also comes a participation organizational and advertising costs to inform about the purchase of the property. Finally, the buyer must also plan a budget linked to the notary fee to be paid on the day of signing, but also to the recovery rights in proportion to the size of the property.

Step 3: Participate in real estate auctions

There are three types of auctions in France: notary auctions, judicial real estate auctions and estate auctions.
If the company in question wishes to purchase a property sold at a notarial auction, the advertising of which meets its selection criteria, it may participate in the auction as follows:

  • Go to the auction site on the agreed day;
  • Give the notary a cashier’s check or a simple check on the deposit requested in the specifications handed out during the visit to the property. This amount must, of course, be available in your bank account;
  • Join the auction and find out the price suggested by the chairman of the session;
  • Discover the bidding step, that is, the amount you bid more for each hand lift.

If the bid is not approved, or if the company has abstained, the check given to the notary will then be returned to the company at the conclusion of the sale.

At judicial auctions held at High Court, the company must be represented by a lawyer. The company must sign a power of attorney that sets the maximum amount to bid on the desired property given to the attorney. However, the company may be present during the hearing, which is time-limited (1 minute 30 per bid, free of charge).

Government auctions on their side around the sale of real estate state-owned. These goods find no heir in the process of inheritance after a deceased person and therefore become the property of the state. These are generally quite rare properties, sometimes in average general condition due to lack of buyers.

Step 4: Pay for the property purchased at auction

When you win an auction, the company is considered to be owner of the purchased propertyeven though she does not yet have the keys.
The auction must be paid for as follows:

  • Within 45 days after the auction, as part of a notary sale;
  • Within 60 days after the auction, as part of a judicial auction.

Signing up for an auction therefore requires that a few important steps be respected. The company looking for a property to buy at auction, whether it is legal or notary, must therefore make sure to visit the property, have all the necessary information about it, know the date of the auction and have adequate financing.

Find the next real estate auctions.

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