Subsection 3: Auctions

Auctions are conducted by a lawyer registered at the bar of the court before which the sale is being conducted. The lawyer may only hold one power of attorney.

Before placing the bids, the lawyer shall obtain from his client, against a receipt, an irrevocable bank guarantee or a bank cheque made payable to the escrow agent or to the Caisse des Dépôts et Consignations, as indicated in the conditions of sale, representing 10% of the hammer price, although the amount of this guarantee may not be less than €3,000. The receipt shall reproduce the provisions of the third…

Before placing the bids, if the property being seized is a residential property or the business assets of an establishment open to the public and used wholly or partly for accommodation, the lawyer must also obtain a statement from the principal stating whether or not the principal has been convicted of one of the offences referred to in article L. 322-7-1 and, if the principal is a natural person, whether…

The costs of the proceedings, duly justified by the pursuing creditor and, where applicable, by the higher bidder, are assessed by the judge and publicly announced before the opening of the auction. Nothing may be demanded in excess of the amount of the fee. Any stipulation to the contrary is deemed unwritten.

The judge shall point out that bidding will start from the amount of the upset price set, as appropriate, in the conditions of sale book or by the court decision provided for in the second paragraph of Article L. 322-6.

Bids are pure and simple. Each bid must cover the preceding bid.

Bidding stops when ninety seconds have elapsed since the last bid. This time is counted by any visual or audible means that indicates to the public each second that has elapsed. The judge immediately establishes the amount of the last bid, which constitutes the winning bid.

Before the end of the hearing, the last-bidding lawyer declares the identity of his principal to the court clerk and gives him the certificate referred to in article R. 322-41-1.

In the absence of a bid and when the amount of the reserve price has been modified by the judge, the property is immediately put back up for sale by successive reductions of this amount, if necessary up to the amount of the initial reserve price.