What amount of money must be reached before the court will auction the house?

Before the auction, the house will be sealed, and then professionals will evaluate the value of the house. Only when the value of the house is determined can the auction process be officially entered. Next, it’s time to actually enter the auction.

1. The first auction (the auction of real estate will be announced fifteen days before the auction)

⑴ The bidder shall pay a certain deposit to the People's Court in advance before the auction. If the person applying for execution participates in the house bidding, he does not need to pay the deposit in advance. The amount of the deposit will be determined by the People's Court, but it cannot be lower than the appraised value or 5% of the market price.

⑵ The people's court shall notify the parties and known security rights holders and preemptive right holders to be present on the auction day five days before the auction.

⑶ If no one bids during the auction or the bidder's higher price should be lower than the reserve price, the person applying for execution or other execution creditors present at the auction will apply or agree to use the reserve price set at the auction. If a property is accepted for auction, the property shall be handed over to settle the debt.

2. Second Auction

If no one bids at the auction or the bidder's higher bid is lower than the reserve price, the auction shall be held again within sixty days.

3. The third auction

For real estate or other property rights that have not been successful in the second auction, a third auction shall be held within sixty days.

4. Sale

If the third auction fails and the person applying for execution or other execution creditors refuses to accept or is legally unable to accept the real estate to pay the debt, the people's court shall A sale announcement will be issued within seven days from the end of the three auctions. If no one is willing to purchase the property at the reserve price of the third auction within 60 days from the date of announcement, and the person applying for execution and other enforcement creditors still do not indicate that they will accept the property to pay off the debt, the measures of seizure and freezing shall be lifted and the property shall be The property shall be returned to the person subject to execution, unless other measures can be taken against the property.

5. Transfer of ownership

After the real estate is sold at auction or the debt is paid off, the real estate is transferred from the moment the auction sale or debt debt settlement ruling is delivered to the purchaser or inheritor. Usually, the court needs to issue a ruling and go to the transaction center where the house is located to handle the transfer of property rights.

The reserve price we mentioned is the price at which the auction should be stopped if the higher auction price proposed by the seller when entrusting the auction does not reach this price. It is a guarantee method for the seller to protect its own interests. . The auction reserve price refers to the low price that the auction sales price should reach at the time of auction. The judicial auction shall determine its reserve price. The auction reserve price shall be determined by the people's court with reference to the appraisal price; if no appraisal has been made, it shall be determined with reference to the market price and the opinions of the relevant parties shall be sought. The reserve price determined by the people's court shall not be lower than the appraisal price or 80% of the market price during the first auction; if the auction fails, the reserve price may be lowered as appropriate during the next auction, but every time The amount of this reduction shall not exceed 20% of the previous reserve price.

Notes on real estate auctions:

1. Payment methods for auctioned houses. We usually require a one-time payment and the payment schedule will be tight.

2. Adjacent relationship of houses

3. Whether the house has property fees, water, electricity or gas bills, etc.

4. All taxes on the auctioned house You need to understand the fees clearly

5. Does the house have a household registration

6. Is the company registered in the house

7. Is the house a haunted house

8. Feng shui of the house

9. Whether the house includes decoration, furniture and appliances. In some auction cases, separate auctions will be conducted

10. Whether anyone is living in the house

11. Does the house have quality problems, leaks, etc.

12. Does the house default on project payments?

The court house auction process is not particularly complicated. There are some precautions that must be paid attention to. You should have a certain understanding of these before the auction to avoid unnecessary trouble.