FRENCH PROPERTY FOR SALE at AUCTION

FRENCH PROPERTY FOR SALE at AUCTION

Although Auctions are not the most common way to sell you home ( they make up about 3% of the total sales ) we feel it is necessary to give you a full guide on buying a property at auction, there are some true bargains up for auction ! Generally houses come cheap, but need some work. The amount of work of corse  you will have to find out – don't let yourself be fooled by a sly dealer. Check the facts and make sure you have a professional at hand!
 
What type of Auctions are there?
Public Auction - A public auction can be conducted on the instructions of the owner whilst vacant property and state-owned property in France may also be the subject of a public auction.
Judicial Auction - A judicial auction following the repossession of a French house takes place at the Tribunal de Grande Instance (local county court). A lawyer is required to submit the sealed bids.

How to Find an Auction ?
Sadly, as auction accounts for only 3% of the national Property sales in France, there isn't one single source about upcoming auctions in France so you will have to spend some time looking around (allot of the sites you will find will be in French so be prepared !)
It would also be a good idea to look at the legal columns towards the back of the regional press in France and to search through some property magazines in France.
A good place to start - Licitor - French Auction Site
Mise à Prix – Reserve Pric
Normally around  55% - 65% of the estimated sale price.

General Procedure
You'll be asked to sign bidding authorization, then you will receive a badge with a number on it used to make your bid.
You'll have to provide proof of identity and if you claim your married you may need the certificate.
Once the bidding has commenced the notaire will light a candle and as the bidding continues new candles will be lit as the previous one burns out.
After 2 successive candles without a bid the winner is pronounces.
The winner will go to the office where he will sign the auction report and the notaire will stamp the bidding authorization you signed earlier and put the sale price on it.
The other bidders will get their cheques back and give the number back.

Particular Auction Procedure
Of Corse all auctions are different. So it is best to check them out. This depends on the particular auction and the notarie (Solicitor). To obtain the sale procedure, description of the property, conditions of sale and reserve prices etc you must obtain the Cahier des charges from the Notaire. This document will normally say the property isn't being sold with guarantees about the condition of the place so please make sure you read it carefully and be cautious and vigilant as you buy.

Visits for Property on Auction
The Cahier des charges will state the visiting hours and the conditions for the visit etc.
In some cases a full visit to the property wont be possible – if possible steer clear of these ones.
As stupid as this may sound, please use common sense. As we said earlier there is no Guarantee on the condition of the property so do NOT let the person guiding you around influence your decision. Make sure you have a second opinion and definitely make sure you have a building professional on hand to make sure everything is up to scratch.
The Financial Side
You will have to arrange the funds before the auction as in France the purchase cant be subject to obtaining a mortgage.
The buyer will normally have to pay a commission to the auction house which would range from 1% - 3% of the sale value – ALLOT lower than estate agent fees.
If you're not biding you will need to leave a deposit which depends on the auction house but varies from 4% - 20%

Overbids (Not adopted at domaine auctions)
Although very rare an overbid is when within 1-10 days of the auction someone else can make a bid of 10% higher than the sale price. Once this happens another auction would have to take place with the opening price being the latest overbid.

Payment
Payment must be within 45 days. There is no 7 day cooling off period .If you do not pay you are liable for the loss.