In the process of enforcement, the court auctions the property of the person subject to enforcement to realize the legitimate rights and interests of the creditor's rights. If the courts have already begun to prepare for judicial auctions, don't let up, this is far from the end.
The entry into force of the judgment can only be said to be an intermission, and it is necessary to keep an eye on the enforcement procedures that follow. You also have to know what you need to do later to get the money for the judgment.
The compulsory auction process can be broadly divided into the following stages:
1. Application for enforcement
After the judgment takes effect, you can apply to the court, and the enforcement judge will be determined within 14 days. Although the house has been seized, it still lacks a "fair value" to determine the auction reference price.
(1) Negotiation between the two parties
In this way, the applicant for enforcement and the person subject to enforcement can negotiate the price of the auction item, and the court will determine the auction price according to the price negotiated by both parties. The probability of this method being used in judicial practice is relatively small.
(2) Directional inquiry
This method means that the auction item has a guide price in the relevant government department, generally the house, the tax bureau will have a taxable price, the court will make an inquiry notice to the tax bureau, and the tax bureau will inquire about the price of the auction house from the network system of the tax bureau, and then reply to the court to inform the price.
(3) Online inquiry
This is to make full use of network big data, the court sends an inquiry letter to several network appraisal companies, and then they make an appraisal report based on big data, this way is that the appraisal is fast (about a week), no charge, the disadvantage is that you can only inquire about houses and vehicles, and the price may not be accurate.
(4) Commissioned evaluation
This is a traditional appraisal, in which the court entrusts an appraisal company to conduct an appraisal on the auction site, which is relatively high and takes a long time to make an appraisal report. On the one hand, it ensures that "everything is used to the best of its ability", and on the other hand, it also ensures the authority of the price and the convincing of both parties. The on-site investigation report will be about one to two months, and it will be extended in special circumstances.
2. Start the auction
After receiving the evaluation report, if there are no problems for all parties, the online auction will be launched within 20 days. After the price assessment is completed, the court may also allow the parties to negotiate to pay the property of the person subject to enforcement to the applicant for enforcement at the appraisal price. Because many creditors don't want a house, they want cash. Moreover, if the value of the property is higher than the debt, the creditor has to make up the money, which is also embarrassing. Therefore, if the parties cannot reach an agreement on the payment of debts in kind, the court will compel the auction of the property of the person subject to enforcement in accordance with the law.
The auction will be announced for 30 days, during which time it can be widely advertised through various channels and methods. The starting price cannot be less than 7% of the appraisal price, and this court will ask for the opinions of both sides. The starting price is the reserve price (auction reserve price).
3. What should I do if the real estate is unsold?
(1) First auction
The bidder shall pay a deposit in advance to the people's court before the auction. If the applicant for execution participates in the bidding, he may not pay the deposit in advance. The amount of the security deposit shall be determined by the people's court, but shall not be less than 5% of the appraisal price or market price.
If there is no bidder at the time of the auction or the highest price of the bidder is lower than the reserve price, the bidder may choose to auction again.
(2) Second auction
If there is no bidder at the time of the auction or the highest price of the bidder is lower than the reserve price, the auction shall be held again within 60 days. The starting price needs to be lowered, and each reduction does not exceed 20% of the previous starting price, which is equivalent to lowering the reserve price for the transaction and clearing the sale.
(3) Selling
If the second auction fails, the court may consider paying the creditor directly to the creditor. If the creditor does not accept it, the third auction - "sale" will be started within 60 days.
The sale is still unsold, and there is no fourth time. Three auctions and two price reductions can't be made, and it would be rude for such a house to be auctioned again, and the court will not allow it to be auctioned again according to the regulations. If no buyer is willing to buy the property at the reserve price of the sale within 60 days from the date of the announcement, and the applicant for enforcement or other enforcement creditors still indicate that they do not accept the property for payment of debts, the sealing or freezing shall be lifted and the property shall be returned to the person subject to enforcement, except where other enforcement measures may be taken against the property.
Fourth, the auction was sold
If it is sold at any of the auction stages, do not rush to open the champagne at half time and finish the following procedure.
(1) In principle
"The balance will be paid within 15 days after the transaction, the transfer ruling will be served within 10 days, and the real estate will be handed over within 15 days."
(2) Actually
In principle, the concepts of several statute of limitations provisions are slightly different in practice, and the legal provisions cannot be seen. After the auction is concluded, the buyer who takes over the offer will pay the full amount to the court's account, so that the court will issue the "Auction Transaction Confirmation" (equivalent to the second-hand housing sales contract), "Enforcement Ruling" and "Notice of Assistance in Enforcement". The above three documents are very important to the docker, without the cooperation of the homeowner, the real estate transaction center can directly handle the real estate transfer and tax review. If the money is to be repaid to several people, the court will have to draw up a distribution plan agreed upon by all parties in advance. When these are all in order, the court will start to divide the money.
5. Pay special attention
(1) The seizure will expire
Be careful and keep an eye on your property preservation period. The period of attachment is generally two to three years, but it is likely to be more than two years from the end of the entire phase of the litigation to the completion of the execution. Therefore, it is important to remember that the seizure status cannot be invalidated and apply for property preservation before it expires. Keep an eye on the judges, they are busy, and if something goes wrong, it is their own loss. Remember, remember. If you are the first to seize or rank first, then once the seizure is broken, your order will of course fall to the end, which is the most painful. After the judge renews the seal, he will issue a "Notice of Implementation of Property Preservation". Before the expiration of the last seizure, the new Immovable Property Register can be retrieved from the Real Estate Exchange Center. It is possible to verify the renewal of the seizure period and also to prevent the need for this material for later procedures.
(2) Don't rely on time limits
It should be noted that the various deadlines mentioned above are copied from the following explanatory documents of the Supreme People's Court. However, in practice, eighty percent will be extended and the mentality will be relaxed. Provisions of the Supreme People's Court on the Auction and Sale of Property in Civil Enforcement by the People's Courts
(2020 Amendment) Provisions of the Supreme People's Court on Several Issues Concerning the People's Court's Determination of the Reference Price for Property Disposal (Fa Shi [2018] No. 15)
Provisions of the Supreme People's Court on Several Issues Concerning Online Judicial Auctions in People's Courts (Fa Shi [2016] No. 18)
On the one hand, the Executive Board is busy, and on the other hand, the specific situation varies from place to place, and there are many delays in practice. Unless the time is too outrageous, there is no need to dwell on the details of the procedure, and it is meaningless and undignified to mess with the judge.
Sixth, calm down
This brief description is sufficient for a general grasp of the judicial auction process. But the process written above is generally a relatively smooth direction. The other party was asked to cooperate with the seizure assessment, no valid objections were raised, enforcement was not suspended, and so on. If these unexpected situations arise, they can significantly delay time. In the meantime, there are also detailed questions about the non-vacating of the house, valuation objections, debt repayment plans, etc., which will be added later.