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Recently, Shenzhen's legal auction housing market is more active. There are several cases of tens of millions of legal auction houses successfully auctioned at a high premium rate, and luxury houses are more concerned than ordinary law auction houses, and the bidding is more intense.
First of all, the "Longgang District Pingdi Street Pingxi Community New Housing Group Factory Building 1, Plant 2, Dormitory" method auction house, the appraisal price is only 31.61 million yuan, after 249 rounds of bidding, finally at a high price of 70.42 million yuan, more than double the appraisal price.
Then, Nanshan Swan Lake Garden Phase II Building D a unit of 131.43 square meters of 3-bedroom units, the appraisal price of 18.82 million yuan, after 182 bids, the final auction price of 25.03 million yuan. The unit price is equivalent to 190,000 yuan / flat, while the official guidance price of this project is 125,000 / flat. The premium rate is higher.
▲Deep property front harbor bay garden law shooting situation Image source see picture watermark
On the same day, a set of 146.49 square meters of french auction house in the former Harbor Bay Garden of Nanshan Shen Property was also very popular, with an appraisal price of 12.95 million yuan, and after 135 bids, about 14.52 million yuan was sold; the equivalent unit price was 99,000 yuan / square, and the official guidance price was 94,900 / square. Relatively speaking, the premium is not high.
Recently, after a set of 88.17 square meters of legal auction house in the third phase of Shenzhen Nanshan China Resources City underwent a stream auction, the second auction was quoted at a 20% discount at one auction: that is, 11.116 million starting from the auction, and after 17 rounds of bidding, it was finally sold at 11.996 million, equivalent to a unit price of 136,000 / flat, slightly higher than the guidance price of 132,000 / square.
Since last year, the supply of legal auction houses has soared, the attention of the legal auction house market has continued to be hot, the enthusiasm of buyers to participate has gradually increased, and various reports on legal auction houses have continued.
In the face of the "low-price temptation" of the legal auction house, do you dare to pick up the leak?
01.
Why is the legal auction house low price?
Let's first talk about what is the "legal auction house" and its source.
A legal auction house, or "court auction property", is a house that is forced to be auctioned by a court. When the debtor (owner) is unable to perform the loan contract or is unable to pay off the debt, the creditor applies to the court for compulsory enforcement through judicial procedures, auctions the house under the debtor's name, and repays the claim with the proceeds of the auction. The house that is auctioned in the process is the legal auction house.
There are four sources of legal auction houses: mortgage default, private lending default, judicial confiscation, and unowned real estate.
▲The source of the legal auction house Image source network
These properties are generally houses that are forced to be auctioned by the court, and usually, the price of the legal auction house is cheaper than the house in the same community, with a range of about 20%.
Since January 1, 2017, the Provisions of the Supreme People's Court on Several Issues Concerning online judicial auctions of people's courts have been implemented, kicking off the prelude to the Internet access to legal auction houses. Legal auction houses, which are called "leak picking" by home buyers, are sought after.
According to the data of Ali's legal auction platform, the supply of legal auction houses has soared in recent years:
In 2017, 9,000 sets;
In 2018, 20,000 sets;
In 2019, 500,000 sets;
In 2020, more than 1.2 million sets;
In 2021, as of mid-December, there were more than 1.68 million units.
▲Ali Fapai platform data image source network
02.
Is the house a cake or a pit?
In the face of high housing prices, some people want to buy low-cost auction houses to reduce the economic burden.
At the same time, judicial auction network housing selection also has its advantages:
Large selection space;
The transaction time is relatively short, and the property transfer is only about 1 month;
Normal mortgage loan can be used, the first home down payment is 30%, and the loan time can quickly meet the court's requirements of 10 working days;
It is safer than the second-hand housing transaction, and it is very likely that the property will be seized by the court due to the seller's other debts during the transfer of the second-hand house, or the seller will sell more than one house and the seller will repent;
The judicial auction is legal, open and transparent, and there is no embarrassment that the customer signs the purchase contract and the intermediary service is declared to end;
Eliminate the risk of private mark-ups, etc.
Before this year, the legal auction house has not been fully included in the scope of purchase restrictions, and some cities with purchase restrictions have not been affected by restrictions on purchases.
The above are the main reasons why buyers are keen to "pick up leaks" in the French auction housing market.
▲The flow of the legal auction room The source of the picture is see the picture watermark
However, the legal auction also implies risks, which is the so-called "pit".
Cases of "vacating and retreating" of legal auction houses occur from time to time, and they are also the news events that attract the most public attention. According to the judicial interpretation of the Supreme People's Court, the enforcement court has the obligation to vacate the house, but in actual circumstances, the vacating and retiring of the legal auction house is always a difficult point faced by the grass-roots courts in the enforcement work. Information is fragmented. In judicial practice, the information involved in legal auction houses is relatively scattered, such as various tax arrears, non-judicial disputes, illegal construction, etc., which belong to the management and control of multiple departments. This reminds buyers to do their due diligence on the target before participating in the auction.
Under the pursuit of buyers, the "black intermediaries" who are moved by the wind also take the opportunity to enter the legal auction market to stir up trouble, they not only charge high-priced commissions and even high-priced deposits to buyers under the guise of serving judicial auctions, maliciously concealing some important information in the service process, resulting in buyers "houses and money are empty".
Since 2020, a number of courts have issued relevant regulations. With the continuous revision and improvement of the rules, the legal auction transaction will be more standardized.
We need to be reasonably risk-averse, but there are basically no zero-risk real estate transactions. As long as there is enough price difference to cover the risk cost of extreme situations, then this set of legal auction houses is worth considering.
03.
What are the precautions for buying a house?
Legal auction house is a "shortcut" for many buyers to spend a small amount of money to do big things. However, compared with normal second-hand houses, there are many pits to avoid. If you want to take it step by step, you really can't take it lightly. In addition to their own needs analysis, capital preparation, the most important thing is: to understand the listing information.
First, check your listings through official channels. At present, according to the Announcement of the Supreme People's Court on the List of Judicial Auction Network Service Providers, there are 7 legal auction network service providers, that is, these 7 are legally qualified, namely: Taobao (Ali Auction), JD.com, People's Court Litigation Assets Network, Public Auction Network and China Auction Network, Industrial and Commercial Bank of China Financing E-Purchase, and Beijing Property Rights Exchange.
The second thing that must be done and the key point is: carefully read the various announcements and documents listed on the judicial auction website: "auction announcement", "bidding instructions", "subject matter introduction", "evaluation report", "video introduction", "picture introduction", etc., in the website will list a lot of important information for house purchase reference, such as the type of house, the status of the lot, the ownership status, whether to rent, whether to occupy, the household registration situation, the way of tax bearing, the arrears of fees, etc., all need to be carefully understood.
▲The dispute over the legal auction involves multiple interests of the image source network
At the same time, participating in field samples is a key step in reducing the risk of buying a legal auction house. Participating in the on-site inspection should pay attention to confirming whether the original homeowner has moved out, but also to clarify whether there is a long-term rental and other situations.
After the above due diligence work is completed, confirm that the listing is no problem, and then pay the auction deposit and participate in the bidding auction.
After the successful bidding, receive the confirmation of the transaction, pay the first payment, handle the mortgage procedures; release the balance to the court, the court issues a ruling; transfer the transfer of the case, go to the tax bureau to verify and pay taxes; receive the new real estate certificate, and clear the house. Only after the transfer of the ownership of the house can the ownership of the house be considered.
The payment cycle of the legal auction house is generally about 10 days, and the full payment needs to be paid, and the full payment is generally not checked the source of funds.
Legal auction house can also be a normal loan, but the process is not the same as the second-hand house, at present, Shenzhen only has a few branches to do, and need to guarantee the guarantee company, the legal auction house loan timeliness requirements are very high, overdue payment of the balance, will be regarded as default, confiscation of the deposit.
In addition, it is worth noting that since January 1, 2022, cities with purchase restrictions such as Shanghai, Hangzhou, Chengdu, Changsha, etc. have also included legal auction houses in the scope of purchase restrictions. Don't rush to shoot it, and as a result, he was empty and happy because of the purchase restriction, and he also lost money.
▲ The purchase restriction city has also included the legal auction house in the scope of the purchase restriction Source Network
Shenzhen is one of the first cities to include legal auction houses in the scope of purchase restrictions. According to the Opinions of the Guangdong Provincial Higher People's Court on the Implementation of the Housing Purchase Restriction Policy in Trial Enforcement and Notarization Work of December 27, 2013, bidders must have the qualifications to buy a house in Shenzhen.
, as follows:
Families who have been in Shenzhen for 3 years + 3 years with social security or tax payment certificate are limited to purchasing two sets;
Families and singles who have been in a Shenzhen household for less than 3 years, but have been in social security or tax payment for 5 years, are limited to one set;
Non-Shenzhen households but can provide social security or tax payment certificates for 5 consecutive years, regardless of whether family or individual, are limited to one set; and can only be registered in the eligible family members.
▲Shenzhen purchase restriction policy Image source network
In addition, if the auction is successful and then regrets the auction after finding dissatisfaction, it will face different degrees of losses:
Deposit confiscation: According to the relevant judicial auction regulations of the court, after the completion of the legal auction auction, if the buyer repents of the auction, the deposit paid by the court will not be refunded, regardless of the amount, the full amount will be confiscated, and the property will continue to be auctioned.
▲Bidding Instructions Image source network
Waste of the first set of loan qualifications: Most buyers will choose to use leverage to handle the purchase of a mortgage loan when purchasing a legal auction house, at which time, if a regret auction occurs, the loan qualification will be wasted. At the same time, the use of the loan will not be revoked, and at most it can be applied for early repayment.
Other court consequences: There are also some more stringent auction rules that also make the buyer who repents of the auction bear the "operating costs" of the re-auction. If the transaction price of the second auction is lower than the initial transaction price, the buyer will also be required to pay "compensation for the difference in price". For some buyers who bid in bad faith, and even have illegal operations, they will also be punished by law, and detention fines are trivial, and if they are sentenced, they will be serious.
Buying a house is not easy, and every step is like walking on thin ice.
Finally, I wish everyone a good home.
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