🔨 Forced auction (Zwangsversteigerung)
In brief
In a forced auction, the court sells the property to the highest bidder so that creditors get their money.
If you are the owner and have debts: talk to the bank early and get debt counselling (Schuldnerberatung).
If you want to bid: you must provide security of one tenth of the market value. A bid must reach at least the minimum bid (geringstes Gebot).
If the highest bid is below half of the property's value, the award must be refused.
Step by step
- Act earlyIf you have payment problems, talk to the bank immediately.
- Get adviceGo to debt counselling and to a lawyer.
- Prepare as a bidderRead the expert valuation and the date, deposit the security.
- Note the awardThe court decides on the award at the hearing or at a separate pronouncement date.
Deadlines
- At the second hearing, the award may no longer be refused because of the value limits.
- As a bidder, the security can rise to a higher amount if entitled parties demand it.
- Buying at an auction carries risks (condition, rights); get advice.
- Enforcement protection and deadlines for debtors: not covered here.
In depth · legal basis, figures and practice – for advisers and professionals
Minimum bid (geringstes Gebot)
§ 44 ZVG: only bids are permitted that cover the rights ranking ahead of the creditor's claim and the costs of the proceedings to be taken from the auction proceeds (minimum bid). Abs. 2: where there are several claims, the prior claim is taken into account only if the order has been served on the debtor four weeks before the auction date.
Security
§ 68 ZVG: a bidder must, at the request of a party, provide security of one tenth of the market value stated in the notice of the hearing. Entitled parties with priority or creditors can demand increased security; it must be provided by the decision on the award at the latest. Surpluses are returned.
Value limits
§ 74a ZVG: if the highest bid, including the capital value of rights that remain, is below seven tenths of the property value, an entitled party whose claim would be covered by a higher bid can apply for refusal of the award, until the close of the hearing on the award. The application is rejected if the enforcing creditor objects and proves that they would be disproportionately disadvantaged. New hearing: at least three, at most six months later. § 85a ZVG: the award must be refused if the highest bid, including the capital value of rights that remain, does not reach half of the property value.
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