immigration consultant's notes. Acquisition of real estate at the auction in Italy.

A real estate auction is a promising way to purchase both residential and commercial properties at prices well below market.

Currently, the following types of real estate auctions are common when:

• the owners are not able to pay mortgage debts (fallimentari),
• real estate was confiscated in criminal proceedings (guidiziarie),
• real estate owned by government agencies interested, for example, in the privatization of such facilities (cartolarizzazioni).

The bidding procedure itself is very transparent and not burdensome. Participants have the opportunity and time to get acquainted with the room and the accompanying technical documentation, conduct an examination, assess risks, etc.

The main feature is that the property is sold in the form in which it was put up for auction: with hidden defects, monetary obligations, sometimes unresolved legal issues ...

As a result, all debts, obligations and problems automatically (after the purchase) turn into the headache of the auction winner. Moreover, the winner no longer has the opportunity to refuse the acquisition, citing the dishonesty of the seller or the organizers of the auction. Therefore, the first place (from the point of view of the potential buyer) is a comprehensive examination of the object itself and the transaction, which, according to the results of the auction, is drawing by court decision.

Participation in the auction is “open” to all comers, with the exception of the owner of the property (at the time of the auction).

If we talk about the bidding procedure, then it is the following. 

Participants must:

• to register in advance. Registration may begin 60 days before the date of the auction.
• to make a deposit. Deposit is usually not less than 10% of the starting price of the offer, plus the cost of registering real estate under the name of the winner. A deposit is usually issued in the form of a bank check.
• to submit an application in a closed, anonymous, envelope. An autopsy is carried out at the time of the auction. Bidding starts with the highest bid, the bidding step is determined by the organizers.

The winner of the auction must pay for the property within the time period set by the auction documentation. If the payment is not made in time, then the auction is declared invalid, and the “winner” loses the deposit, which is included in the final payment for the object otherwise.

After payment on the basis of a court decision, the auction winner becomes the new owner of the premises. The court decision replaces the notarial deed provided for by the procedure for registering property acquired outside the auction.

It should be noted that in some cases at the auction you can buy real estate with a discount of 50% or more (compared with the market price of the object). However, do not flatter yourself. The fact is that with most auction objects there are problems that not only need to be identified in a timely manner, but also eliminated after the registration of ownership. And it costs not only certain efforts, but also is expressed in additional financial costs ...

If you are interested in buying property at tenders, our experts will assist you in the selection and examination of the property, in preparing documents for participation in the auction, and will ensure your participation in the course of the auction.