Chapter VI: Removal of mortgages by third-party purchasers.

The third-party purchaser shall arrange for the notification provided for in Article 2464 of the Civil Code by bailiff’s deed, at the addresses elected by the creditors in their registrations. He shall attach to the deed: 1° An extract of its title, containing the date and nature of the deed, the identity of the seller or donor, the nature and location of the property sold or donated, the sale price,…

The creditor who pursues the auction sale of the property pursuant to Article 2465 of the Civil Code notifies the requisition deed provided for in this article by bailiff to the principal debtor, the third party purchaser and the other creditors holding a registration on the property. This deed shall contain, under penalty of nullity, the constitution of the applicant’s lawyer, the higher bid and the offer of security. The…

The requisition for the purpose of selling the property by auction may be contested by summons to appear before the judicial court within whose jurisdiction the property is located. This summons must, on pain of inadmissibility, be served within fifteen days of notification of the requisition deed. If the challenge is admitted, the act of requisition is declared null and void and the third party purchaser maintained in his rights,…

On expiry of the time limit for contestation, the auction sale hearing is fixed by the president at the request of the pursuing creditor, at a date within a period of two to four months following the order. The order is notified by the registry by registered letter with acknowledgement of receipt to the third party purchaser and the debtor.

At the behest of the pursuing creditor, publicity formalities shall be carried out in accordance with the conditions laid down in the articles R. 322-30 to R. 322-38 of the Code of Civil Enforcement Procedures, specifying the amount of the higher bid.

The pursuing creditor shall draw up a schedule of conditions of sale which shall be deposited at the registry of the judicial court responsible for the sale. It contains: 1° A statement of the order setting the date of the sale and its publication; > >

The auction shall be conducted under the conditions provided for in Articles R. 322-39 to R. 322-63 of the Code of Civil Enforcement Procedures. No higher bid may be received. The reiteration of bids may be pursued under the conditions provided for in articles R. 322-66 to R. 322-72 of the same code.

In the event of default by the pursuing creditor or the third-party purchaser, subrogation may be requested by the registered creditors in the forms provided for by Article R. 311-9 of the same code. The pursuing creditor remains bound by his guarantee despite the subrogation.

When a creditor holding a published security interest over an immovable by destination forms an overbid, the sale is made by a ministerial officer authorised by his statute to conduct public auctions of tangible movables and, in the cases provided for by law, by sworn goods brokers. In the absence of a bidder, this creditor is declared the successful bidder for the amount of the reserve price. Payment of the…