Realisation of assets

Usually the enforcement authority sells the distrained assets by a public auction. However, the assets may also be sold freely without a public auction. When assets are sold freely consent of the debtor, the creditors and other right holders is required. Quoted shares and book-entry securities can be sold by means of a broker.

A public notice of the auction is published in the newspaper.

The auction is by increasing bids, with the assets being sold to the high bidder. Before the auction the enforcement officer may accept written offers, which are considered as bids at the auction. However, a mortgage and pledge may constitute a reservation in the auctioning of real property. In addition, a bid for real property or shares in a housing company must be turned down, if the auction price is clearly lower than the going auction rate in the locality in question. When assets are sold freely, a separate agreement on the terms of the sale is usually made.

The auction price must be paid in full and at once. The enforcement officer may when necessary extent the time of payment to six weeks at the longest. In this case buyer has to pay 20 percent of the price immediately as down payment.

The selling price is remitted to the creditor.

A compulsory sale can be subjected to appeal.

Nationwide listing of compulsory sales

Updated on 4th of May 2011