Judicial Auctions
Judicial Auctions
The judicial auction is one of the means that allow the mortgaged or seized assets to be transformed into money, so that the defendant debtor can pay the debt claimed with the amount obtained in it. Everything that has an economic value can be auctioned: property, vehicles, furniture (jewellery, paintings, machinery, etc.) and any other kind of goods or rights.
In October 2015, the electronic auctions system was launched through a single portal of judicial and administrative auctions in the State Agency Official State Gazette, in accordance with the procedure provided for in Law 19/2015, of 13 July, on administrative reform measures in the field of the Justice Administration and the Civil Registry that pursues two clear objectives: on the one hand, transparency of the procedure and, on the other hand, obtaining the highest possible yield from the sale of the goods. The existence of a single auction portal will make it easier for the citizen, once registered in it, to intervene in them since the manner of making the deposit to participate will be common for judicial and administrative auctions, it is not necessary to travel to the headquarters or offices to make the bids and he/she can receive alerts on auctions of goods in which he/she may be interested.
Presentation of the Electronic Judicial Auctions Portal
These auctions may include different types of goods:
- Real estate: homes, garages, plots, etc.
- Movable property: machinery, furniture, etc.
- Vehicles: passenger cars, industrial vehicles, and other vehicles.
Article 645.1 of the Code of Civil Procedure, after the amendment introduced by Law 19/2015, of 13 July, on administrative reform measures in the field of the Justice Administration and the Civil Registry, establishes that the call for the auction will be announced in the "Official State Gazette", serving the notice to the non-personally executed. The Attorney of the Justice Administration before whom the execution procedure is followed shall order the publication of the notice of the call for the auction, sending it, with the content referred to in the following article and electronically, to the "Official State Gazette". Likewise, and for information purposes only, the announcement of the auction will be published on the Justice Administration Portal.
You can access the judicial electronic auctions portal in the State Agency Official State Gazette in the following link.
Electronic Judicial Auctions in the State Agency of the Official State Gazette
Any interested citizen who registers on the Electronic Auction Portal in the Official State Gazette may participate in an Electronic Judicial Auction.
Except in cases of Legal Aid, to certify participation in an Auction it will be necessary to deposit 5% of the goods’ appraisal value. This deposit will be made electronically through the Tax Agency payment gateway through the Electronic Auctions Portal of the Official State Gazette.
You can access the Judicial Electronic Auctions Portal in the State Agency Official State Gazette in the following link.
Electronic Judicial Auctions in the State Agency of the Official State Gazette
Performance and termination of the auction.
The electronic judicial auction will admit bids for a period of twenty calendar days from its opening. The auction will not be closed until one hour after the last bid has been made, even if this entails extending the initial twenty-day period referred to in this article by a maximum of 24 hours.
The Attorney of the Justice Administration may cancel or suspend the Auction. If the suspension of the auction for a period exceeding fifteen days will entail the return of the appropriations, bringing the situation back to the moment immediately prior to the publication of the notice. The auction will be resumed through a new publication of the notice as if it were a new auction.
On the auction closing date and after it, the Auction Portal will send the Attorney of the Justice Administration certified information on the electronic bid that would have been the winner, as well as, in descending order of amount and chronological in the event that it is identical, of all the others that would have opted for the bid reservation.
Upon completion of the auction and receipt of the information, the Attorney of the Justice Administration will record it, stating the name of the participants and bids they made.
In the event of being the highest bidder, what deadline do I have to pay the whole price I have offered for the goods auctioned?
The law establishes deadlines for the highest bidder to deposit the difference between the amount initially deposited to participate and the price offered. These periods are ten days when a movable property has been auctioned and forty days when a property has been auctioned. These deadlines are business days, meaning Saturdays and holidays are not counted. It must be borne in mind that, when an amount of less than 50 per cent of the value of the movable property or 70 per cent of the value of the property is offered, the court clerk must give the executing creditor and the debtor defendant the opportunity to improve those prices. Therefore, the difference should not be consigned until such a transfer to the parties has been verified without any of them having improved the price. The Attorney of the Justice Administration will, therefore, have to inform the highest bidder when the term begins to consign the entire price offered.
If the remainder of the price is not deposited within this period, it is what is called "failure of the auction", and the amount deposited may be lost.