Section 3: Sale by auction

The property is sold by public auction at the judge’s hearing.

The amount of the upset price is set by the pursuing creditor. In the absence of a bid, the creditor is automatically declared the successful bidder at this amount. If the amount of the reserve price is clearly insufficient, the debtor may apply to the court to set a reserve price in line with the market value of the property and market conditions. However, in the absence of a bid,…

Subject to any disqualifications arising from the functions they perform, any person may bid if they can provide guarantees of payment.

Any person sentenced to one of the additional penalties provided for in 2° of I of article 225-26 of the French Criminal Code, in 3° of IV and in the second paragraph of V of article L. 1337-4 of the Public Health Code, 3° of article L. 184-7 and in the second paragraph of article L. 184-8 of the French Construction and Housing Code, in 3° of III and the…

The auction may not give rise to a declaration of order.

The successful bidder pays the price into an escrow account or deposits it with the Caisse des Dépôts et Consignations and pays the costs of the sale. He may not, prior to the payment or deposit and payment, carry out any act of disposal on the property, with the exception of the creation of a mortgage accessory to a loan contract intended to finance the acquisition of this property.

The auction results in the forced sale of the seized property and transfers ownership to the successful bidder. It does not confer on the latter any rights other than those belonging to the distrainee. The latter is obliged to deliver the property to the successful bidder and to guarantee against eviction.

The bill of sale is only issued to the successful bidder upon proof of payment of the taxed costs.

Failing payment of the price or its deposit and payment of the costs, the sale is automatically cancelled. The defaulting buyer is required to pay the difference between his bid and the resale price, if the latter is lower. He may not claim reimbursement of any sums he has paid.

The auction judgement constitutes a writ of eviction against the distrainee.