Glossary - technical terms

It is advisable to get access to the respective real estate property records at the responsible county court, in particular the valuation report, before the compulsory auction date. This can be carried out by anyone.

The costs which are connected to the acquisition of real estate. This includes the tax on acquisition of real estate, possible commitment interest for a loan, notary and court fees for the registration as owner in the land register, account fees. A bid award fee results from the compulsory auction procedure.

s. Date

Fees which accrue for the financing of the real estate purchased by auction at the respective credit institution for the processing of the loan application etc.

Refers to the amount which is named by the interested bidders during the appointed time of the auction. At the beginning of the bidding time the amount which must be at least placed as a bid (minimum bid) is announced.

When the bidding time expires and the bid award has not failed due to non-achievement of the 5/10 or rather 7/10 limit, the object is awarded to the highest bidder. With the award, he/she assumes ownership.

After the request to make bids, the bids are made verbally. It must be observed that possible persisting rights on the property must be added to the bid. Bids are always binding and can in no case be revoked. Reasonable bidding steps in proportion to the market value should be taken.

This begins with the request of the judicial officer to place bids. The bidding time lasts at least 30 minutes. A valid identification card or passport and the security deposit must be brought along.

It occurs that a compulsory auction date is cancelled, e.g. because the real estate was sold by direct sale.

s. Date

This term describes hazardous deposits in the soil of pieces of property. This is often the case with objects which are situated in the vicinity of industrial plants.

s. Joint Ownership

s. Additional Charges

The person in whose favour a real property right (land charge, mortgage) is registered in the land register.

Day and time at which the object is to be auctioned. A date is itemised according to the notification section, the bidding time and the negotiation regarding the bid award.

The person at whose instance the compulsory auction is being conducted.

A land register office copy consists of several pages, also called divisions. The ownership structure of the property results from the division I. Easements (e.g. right-of-way); usufructuary and similar rights are registered in division II. Ultimately, division III indicates which creditor is registered for mortgages or land charges in the respective order of rank.

Describes the duty of the judicial officer to answer all important procedural questions asked by anyone as well as to work towards relevant applications being filed or to point out possible filings of applications.

The partial amount which is available for the acquisition of real estate from own funds.

If the real estate purchased by auction is leased, the buyer who has received the award has an extraordinary termination right. This means that the termination of a lease contract for living space with a time limit of three months is permissible. In doing so, it is irrelevant how long the leaser has already been living in the object or whether a temporary lease contract exists which is valid for several years. However it should be observed that this extraordinary termination right can only be executed on the first legally permissible date. This first date applies as of the effectiveness of the bid award. If termination does not take place after that, an extraordinary termination right is excluded!

Parts of a parish. The parish is divided into fields and these in turn in land parcels, the smallest parts of a real estate. This ensures that each piece of property is marked and can be separately shown on a page.

The financing of the real estate purchased by auction should be secured by a loan from a credit institute or respective equity before the auction date.

On the first date the highest bid must at least amount to half of the market value (5/10 limit). Otherwise the bid award must be denied.

At the end of the bidding time, the bid award is first negotiated. If the highest bid has not achieved at least half of the legally determined market value – meaning 5/10, the judicial officer must deny the bid award on the first date.

Also last and highest bid; the bidding time is concluded as soon as no interested bidder makes any higher bids. In conclusion, the highest bid is called out three times. If no higher bids are made, the conclusion of the auction is declared.

The person who makes the highest bid.

A right equivalent to real property which can be sold and encumbered just like a piece of property. The bearer of an inheritable building right does not have ownership of the property but rather the sellable and inheritable right to build on the property and to use it in line with the underlying contract.

Anyone who would like to purchase the real estate by auction on the auction date and participates in the bidding process.

In principle the ownership of the property and the real estate belong together. This is different in the case of a freehold flat. Here the owner has the so-called separate property on the flat itself while a co-ownership share exists for the freehold property.

The person who is in charge of the complete compulsory auction procedure.

The legal relationships of property are recorded in the land register. The land register is divided into divisions.

s. Highest Bid

The value of the object determined by an expert appointed by the court. Based on this, the 5/10 and 7/10 limits are for example determined.

At the beginning of the bidding time the minimum amount which must be at least made as a bid (minimum bid) is announced.

If there are several owners of a piece of property or real estate who cannot agree upon a direct sale of their property, each one of them can file for an auction application. Divorces and communities of heirs are the most frequent cases.

If the creditor has a legally binding or temporarily enforceable declared title (e.g. judgment) against the debtor, he/she can use it to file for the order of a compulsory auction at the responsible county court. Upon existence of all requirements the judicial officer then issues the ruling for the order which is served upon the debtor.

The parish represents a real estate belonging to a municipal district.

This secures the entitlement of the conveyance of property in rem for the acquirer. With it the acquirer has the guarantee that the present owner cannot resell the property or encumber it with additional rights.

Describes the creditor (e.g. bank) who/which initiates the compulsory auction. Additional creditors can participate in the procedure upon application.

If the bid award is given, the real estate purchased by auction must be paid for. This can be effected either in cash or by means of bank transfer or payment to an account of the court cashier.

In the third division of the land register the creditors are registered with their rights on the property (land charge, mortgage). These are listed in a particular order of rank. The ranking is determined according to the order of the registrations.

The object itself is not to be exploited in a forced administration but rather the proceeds are to be drawn from the use of the object. A sequestrator is appointed for this purpose who maintains the object in an economically sound manner. The forced administration can be conducted in addition to the compulsory auction.

If the highest bid is indeed over half of the legally determined market value but 70 % of which is not achieved, the court can deny the bid award at the request of the respective creditor.

In the case that the real estate purchased by auction is occupied by the debtor him-/herself, it can be vacated with the bid award ruling. The bid award ruling is in itself an eviction title. The ruling must be provided with an execution clause and served upon the debtor.

An expert appointed by the court compiles a market valuation report for each object which is to be sold by auction. The most important information in this report is the market value. Furthermore there is information regarding the location of the object, the constructional state, the leasing situation, running costs etc.