An auction can be voluntary, but will often be ordered by ‘the bank’. If the bank is of the opinion that a client can no longer meet its obligations, it can instruct a notary public to proceed with the public sale of the house, business premises or ship or the (agricultural) land on which a right of mortgage is situated

Different types of auctions are possible. A public auction usually takes place because a mortgage holder makes use of his power to proceed with the public auctioning of the mortgaged registered property in public at the moment that the mortgage lender is in default of fulfilling his obligations. In addition to the enforceable auction by the mortgagee, auctions are known on the basis of a court order.

At the public auction, therefore, the object to be auctioned is not sold by the owner himself, but by the creditor, for example the mortgage holder. The auction takes place by bidding and auctioning. In the auction phase in which the bidding takes place, the bidding starts at the betting price – which is determined by the creditor who initiated the enforceable auction -. The auction phase in which the auction takes place starts with a countdown from an agreed amount that is considerably higher than the highest bid made in the auction phase and ends when someone has quit. Mining is done by calling the word “mine” when the amount is called by the notary. The ultimate buyer of the auctioned item is the person who has auctioned off, or – if not has been kicked off – the highest bidder by bidding, provided that the item is awarded to him by the auction seller. Awarding means that the auction seller declares to accept the bid made.

Up to fourteen days before the auction date it is possible to place a private bid on the item to be auctioned. If this private bid is accepted by the auction seller and approved by the court, there will no longer be a public auction.

For more information or explanation about the auction procedure you can contact us. Van Lenning Notariaat is happy to help you further!