As the real estate market has been flooded in the last period by housing offers executed by banks, those looking for a house can seriously consider this option as well. However, the procedure for purchasing such a building is slightly more complicated.
The first step consists in identifying an executed house that meets the buyers’ requirements: the locality, the number of rooms, the endowments.
This can be done directly on banks’ websites. Most institutions that have foreclosed real estate stocks have created special sections on their own web pages that allow a quick search.
After finding the property, you can go to the auction or you can go for the direct purchase option.
What is the procedure in the case of the auction?
The auctions are announced in widely circulated newspapers and any person interested in the promoted building can participate on the date and place indicated in the announcement.
Any person who, by the time set for the start of the sale by public auction, has registered as bail to the executor, in the account indicated by him, at least 10% of the starting price of the auction for the goods he intends to participate in the auction buy them.
The interested person will formulate a written offer which he will submit to the executor together with the proof of registration at the latest before the beginning of the auction.
The debtor executed by force cannot bid in the public auction either personally, or through other interposed persons.
The price from which the auction starts is the one provided in the sale publications and the executor will offer for sale the building, by three successive calls, at time intervals that allow options and overbidding, starting from the price mentioned in the sale publication. Or, in case of registering an offer with a higher price, from this offered price.
At the request of the person who won the auction (the successful bidder), the executor, with the consent of the creditor/bank, may establish the payment of the price in installments, their number, amount, and due date, as well as the amount immediately paid as advance.
Thus, if the credit institution that put the property up for sale agrees, the price can be paid in several installments, respectively by credit.
In all cases, the pursuing or intervening creditors may not adjudicate the goods offered for sale at a price lower than 75% of the one at which the real estate was valued during the execution procedure.
The winner of the auction will submit the price to the executor within a maximum of 30 days from the date of sale, taking into account the deposit deposited in the price account.
If the successful bidder does not submit the price within the term provided by 30 days, the property will be put up for sale again in the contractor’s account, being obliged to pay the expenses occasioned by the new auction and the eventual price difference.
If at the new auction term the real estate has not been sold, the former successful bidder is obliged to pay all the expenses occasioned by the pursuit of the real estate.
After the full payment of the price, the executor, based on the tender report, will draw up the adjudication act. By tabulation, the successful bidder acquires the right to dispose of the purchased real estate, according to the land book rules.
How to buy the property without auction?
If there is an agreement of the parties, the executed building can be sold directly to a buyer who offers at least the amount provided in the price-setting report.
On the date of sale, the executor will draw up the minutes of direct sale, which will be signed by the executor, the parties or their representatives, and the buyer.
If one of the parties is absent from the sale, the executor shall communicate a copy of the minutes of the sale. The report issued by the executor constitutes the title deed for the buyer.
The property comes bundled with the tenants
From the date of tabulation, the property remains free of any mortgages or other charges regarding the guarantee of debt rights,
on the other hand, even if after the acquisition the property is free of encumbrances, it may still be inhabited. The buyer is the one who must carry out the legal steps necessary for evacuation, according to art. 578 et seq. Of the Code of Civil Procedure.
After the auction, between December 1st and March 1st, no evacuations can be made. Exceptions are cases in which it is proved by the buyer that he and his family do not have a suitable home or that the debtor and his family have another suitable home in which they could move immediately.