Court auction
A court auction is the procedure by which a court sells a property to pay off its owner's debts.
Detailed explanation
When a debtor fails to pay and the collateral is enforced, the court puts the property up for public auction through the BOE Auction Portal. Bidders compete and whoever makes the best bid earns the right to be awarded the asset. It is a direct route to buy below market price, but it requires an upfront deposit and a good understanding of the procedure and any charges.
Practical example
A retail unit with an auction value of €90,000 can be awarded with a bid of €65,000 if no other bidders make higher offers.
When it matters
Understanding court auctions is essential before bidding: the deadlines, the deposit and the property's charges determine the final return.
At Arkos Investor
At Arkos Investor we analyse real estate auctions and their charges so you know exactly what you are bidding on before taking the step.
See related opportunities