According to what is mentioned in the first paragraph of the Article 690 of CPC, all individuals who can freely manage their own assets may bid at the auction, except: the tutors, the curators, the executors, the administrators, the trustees or the liquidators, regarding the assets entrusted to their care and responsibility; the representatives, who are held accountable for the administration or disposal of assets; the judge, the registrar, the custodian, the assessor, the judicial officer and the official auctioneer and minors of age.
In many of the auctioned properties, the resident refuses to open the door and does not allow the visit of the interested parties. The only feasible option is to talk with the employees of the condominium or with neighbors, in order to have some better understanding.
Contemplating this, our team provides a service in which it performs a market survey of the building and area as well as legal analysis of the foreclosure status to help reassure beforehand the potential of profitibility despite the condition of the property.
The risk of loss is zero. If there is an issue with the auction itself, which is not the responsibility of the bidder, the purchase will be returned.
In the case of mortgages, pledges, other pending matters, you, as the bidder, have the prerogative and these values are not attached to the property, i.e., you will receive it free and clear of any pending issues. Potential creditors will split the value of the auction, thus suspending any other pledge of the property.
The auction sale is ensured law, being administered by a Judge of Law who entrusts the Official Auctioneer with this assignment.
The auction shall be considered official after the immediate payment of the winning price by the bidder, or within the time permitted as set by the auctioneer.
The signing the auction notice (Auto de leilão) validates the purchase. The process of signing can varie in time and place. It can be done same day of purchase, next day or within 3 days. Usually it is done at the office of the auctioneer.
Yes, there are several fees. The auctioneer’s commission is 5% of the value of the purchase price, with the auctioneer being directly paid by separate check, who will then give you a proof of payment receipt. The purchase amount is normally due in full at the immediatly at the auction. It is recommended that you hire legal advice (attorney), your commission for that support will also be 5%. In regards to the costs of registering the property, these will be, approximately, 2% ITBI, 1% Notary Office, 0.6% IPTU and 0.25% ISS. In all, up to 15% should be set aside to complete the purchase.