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Enforcement against real estate is the slowest and most formal enforcement procedure. It makes sense when the debt is large and the debtor has no income or accounts to recover it from, but does own a flat, a house or a plot of land.
What you should know from the start
A property isn't sold overnight. It usually takes a few months between filing the application and the auction, because the law requires a valuation, advertising and deadlines that give the debtor a chance to pay. The debtor can stop the sale at any point before the property is awarded to a buyer by paying the debt and the enforcement costs.
If the property is mortgaged, the mortgage creditor, usually a bank, gets paid first when the money is shared out. An unsecured creditor only receives what is left after the bank and the enforcement costs. That's why we look at the land register extract first and only then advise you whether this route is worth it.
The real estate enforcement notice is recorded in the land register. From then on, any buyer or bank can see the property is under enforcement, and a sale made quietly by the debtor can no longer be used against the creditor.
Steps in the procedure
- The creditor submits the enforcement application and the enforceable title.
- Once enforcement is approved, the debtor receives the enforcement notice giving them 15 days to pay, and the notice is recorded in the land register.
- If the debt is not paid, the property is valued, usually by a licensed valuer.
- The sale notice is published at the property, at the office, at the town hall, at the court and in the electronic sales register, at least 30 days before the auction.
- The auction takes place at the office. If the property doesn't sell, a new date is set with a lower starting price, under the conditions of Article 845 of the Code of Civil Procedure.
- The buyer pays the price and the bailiff issues the deed of adjudication, which serves as their title of ownership.
- The money is shared among the creditors in the order of priority set by law.
Documents you need
- The enforcement application and the enforceable title.
- The land register extract for the property, if you have it. If not, we'll get it.
- The debtor's details and the address or cadastral number of the property.
- An advance for the enforcement costs: valuation, advertising, service of documents.
Frequently asked questions
Can the debtor's only home be sold?
Yes. The law does not prohibit selling a home for debts, even if it is the only one. That is exactly why the procedure has longer deadlines and gives the debtor more chances to pay or reach an agreement with the creditor.
Can I buy a property put up for auction?
Yes, anyone can take part, except the debtor and people the law prohibits. Before the auction you have to lodge a deposit of 10% of the starting price. You'll find current notices in the Auctions section of the site.
What if the property sells for less than the debt?
The difference isn't written off. The creditor can continue enforcement against the debtor's other assets or income until the debt is recovered in full.
Who pays for the valuation and advertising?
The creditor pays upfront, but in the end these are enforcement costs borne by the debtor and are recovered from the sale price.
The information on this page is general and is not a substitute for legal advice on a specific case. For your situation, call the office: 0744 143 226.