Often overlooked, voluntary notarial auctions (or candle sales) are a unique way to sell your property. These are organized by the Chamber of Notaries, or on spot, or in a room close to the property sold by auction.
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They are an increasingly popular real estate transaction mechanism among individuals. One speaks of an “amicable sale” or “voluntary sale” in order to differentiate these from the judicial auction which is a forced sale. As part of the notarial auction, this is a competition for the purchase offers from several potential buyers.
These are organized by the Chamber of Notaries, or on spot, or in a room close to the property sold by auction.
The notarial auction is often used by a landlord who is facing impending foreclosure proceedings. Therefore, one can avoid a forced sale. However, it increasingly concerns individuals (or professionals) who simply wish to sell their property.
Good to know: the auction of notaries concerns all types of real estate: entire building, house, apartment, cellar, parking, building land, agricultural land, trade ... Exceptional or atypical goods are often the subject of amicable auctions because there is no real market.
Before the auction
The owner begins by choosing a notary. Through the agreement with the seller, the notary sets the amount of the initial price, estimated in most cases at 75% of the value of the property.
Careful
It is possible that the sale will take place “without a bid”. However, in this case, the owner determines a price below which, he shall refuse the sale.
He then advertises in the press, on public posters, on the Internet, etc:
The notary draws up specifications that can be consulted at his office or on his website. These specifications contain a lot of information on real estate:
- the general conditions of sale,
- the particularities of the property (free property, well occupied, description, origin of property),
- town planning provisions,
- easements,
- diagnostics (certificates relating to the Carrez law, accessibility, lead, asbestos, the presence of termites, the state of natural and technological risks, etc.),
- The trustee, the union, the representative,
- the mortgage situation,
- the date of the sale,
- the price and the organization costs,
- the ability to overbid,
- whether or not they meet decent housing standards for rental properties,
- etc.
During the three weeks preceding the sale, the notary, whose contact details are given on the advertisements, answers all questions from potential buyers. It also informs them of the day and time of the visit to the property. Usually two or three tours are organized, however, they often take place during the week and during the day.
The day of the auction
Anyone can take part and bid at notarial auctions.
After announcing the starting price and the amount of additional costs payable by the successful bidder, a small wick is lit which symbolizes the beginning of the auction.
During these auctions, each wick (or fire) that goes out is replaced by a new one, and so on.
After the extinction of two successive wicks, materialized by the smoke which escapes, and without any new auction that occurs during their burning, the auction is pronounced in favor of the last bidder.
The notary records the result of the sale in an auction report. This deserves a deed of sale.
The consignment check deposited by the buyer to bid is immediately cashed and is deducted from the sale price. This deposit check is for 20% of the starting price and allows you to bid by obtaining a bidder number. Of course, if the bidder does not win the auction, his check will be returned to him.. The buyer then has 45 days to pay the full price (if no higher bid has been made within 10 days of the session).
An increase of 10% of the price of the property can still be made 10 days after the sale.
The price includes sales costs: land registration tax, notary fees, advertising and auction costs. The sale only becomes final once the bidding deadline has passed. Once the entire payment has been made, the buyer gets the keys back. On the other hand, once the deadline has passed, penalties are due and they are increased beyond 75 days.
To remember: there is no reflection period (or withdrawal period) of 10 days in the context of the notarial auction. In the same way, it does not include any suspensive conditions.
Good to know: there are also internet auctions. This is the interactive "immo-interactive" notarial sale. It enjoys the same legal guarantees as any real estate sale. It allows you to know in real time the successive purchase offers. While visiting the property, the potential bidder must sign an application for approval and the conditions of the sale, then complete a registration form on the site www.immobilier.notaires.fr. Once his account has been validated, a request for approval is sent to the notary. The online sale lasts 24 hours. At the end of the sale, the buyer signs a sales agreement with the notary. The advantage of this sale being that it is possible to insert suspensive clauses.