What is the composition of the lowest bid?

What is the lowest cash bid?

Lowest bid:

The lowest bid includes an amount of money to be paid in cash (according to § 49 ZVG the “cash bid”) and the rights to the property that remain in existence according to the auction conditions. The cash offer must cover the costs of the procedure.

What is the minimum cash bid?

Before the invitation to submit bids (see bidding time), the court announces the lowest bid on the auction date. This is divided into the part to be bid in cash (minimum cash bid) and the part of the remaining rights that must be taken over by the buyer after the auction.

How far above market value bid?

However, if the highest bid is less than 70 percent of the declared market value, the creditors do not have to accept this. In this case, you can initiate a new round of bidding on a different date. If you really want the property, you should offer at least 70 percent of the market value.

Can you bid on half a house?

How does the auction take place? One cannot unilaterally say goodbye to the co-ownership community, not even at the notary. Nobody buys half a house! The only legal remedy is foreclosure.

What is the value of a division auction?

The division auction initially only converts the property into money, but the proceeds are not distributed automatically, for example according to the amount of the inheritance. The joint heirs must do this unanimously. If no agreement can be reached here, the court deposits the proceeds until the matter is clarified.

Is the market value the minimum bid?

Without the market value, a foreclosure sale cannot be dated and the minimum bid cannot be set. As a rule, the market value is a benchmark for sellers and bidders alike. The appraiser who determines the market value is independent and is appointed by the court.

What does 5 10 limit mean?

In the case of bids (cash bid + any existing rights) below 50% (= 5/10) of the market value, the bid must be officially refused (§ 85 a ZVG). With bids from 50% but less than 70% (= 7/10) of the market value, the bid can be refused because the 7/10 limit is not reached.

What is the present value of foreclosures?

If a bidder is awarded the contract for a property, he must also pay the present value in addition to the cash bid. This is the value of the rights that remain. The purchase price is due at the latest on the so-called distribution date. This takes place 4-8 weeks after the auction.

What happens after the distribution date?

A distribution date in the course of an auction is understood to mean a deadline that is set by the court after an auction date. This distribution date is usually set with a period of around six to eight weeks after the award.

What is auction proceeds?

In an auction, this is the amount to be paid by the highest bidder. The auction proceeds are, so to speak, the recognized highest bid. However, this can only be said when the highest bidder has officially been awarded the contract.

Can my husband force me to sell the house?

The house sale can also be forced. To do this, a divisional auction must be applied for at the district court. In this type of foreclosure, the indivisible assets of the property are converted into money through a sale. This in turn can easily be divided.

Does a division auction make sense?

The division auction is particularly useful if one of the co-owners would like to become the sole owner, but cannot agree on a purchase price among themselves. In that case, that person can bid at the auction and may be awarded the contract.

Can a partition auction be rejected by the court?

How can heirs prevent the partition auction? There are several ways to prevent a partition auction. The amicable agreement with the co-heirs who made the application, the third-party objection suit or a right of usufruct entered in the land register.

Why are foreclosures so cheap?

The additional costs incurred at an auction are also rather low compared to a regular purchase. A lot can be saved here, because both the broker’s commission and the notary costs are usually noticeably higher than the additional fee incurred in a foreclosure sale.

How much equity in foreclosures?

Courts often demand at least ten percent of the market value as collateral, which you, as an interested party, have to deposit beforehand. This can be done, for example, via a so-called bank-certified cheque. If you do not already have this sum in the form of equity, it must be co-financed.

What reduces the value of the house?

Depreciation due to encumbrances

Current encumbrances also represent an impairment. If you sell a property that is still subject to ongoing encumbrances, these costs naturally reduce the value of the property. You can pay off the loans before the sale — although you have to expect higher costs.

What does the value limit of 50% and 70% of the market value mean?

Now the value limits come into play: If the highest bid is less than 70 percent of the market value, the creditors can prevent the award. If less than 50 percent, the magistrate must refuse the bid and set a second auction date in which the value limits no longer apply.

What does value limits 5 10 7 10 apply?

If the highest bid is below half of the market value (5/10) on an auction date in which the 7/10-5/10 value limits apply (i.e. at least on the first auction date), the surcharge pursuant to Section 85a (1) ZVG is to refuse officially. In such a case, a surcharge is therefore excluded.

What is a highest bid?

The highest bid is the highest bid submitted at an auction. As part of the foreclosure auction, the highest bidder is to be awarded the bid. In the case of an on-site foreclosure auction, the award to the highest bidder should be preceded by a three-time call.

What are Persistent Rights?

(1) A right remains insofar as it is taken into account when determining the lowest bid and cannot be covered by payment. For the rest, the rights expire.