Electronic public auctio
Electronic public auction is a relative novelty in the Croatian judicial system, which has greatly increased the transparency of participation in public auction and made it easier to participate remotely.
When the sales of immovable property or movable property in public auction is ordered in execution, insolvency or other judicial proceedings, the court or other competent authority delegates the execution of the electronic public auction to the Financial Agency (FINA). After the Financial Agency receives the order for the execution of the public auction, an invitation is published for the person who proposed the initiation of the procedure, to advance the costs of the procedure. It is necessary to particularly underline, for the persons on basis of whose proposal the public auction is conducted with the purpose of selling their debtor’s assets, that this invitation is published only on the website of the Financial Agency, and is therefore very important to regularly monitor the site and make the payment within the indicated term of 8 (eight) days, to avoid negative consequences in the form of suspension of the entire procedure.
After the person who proposed the initiation of the procedure has advanced the costs of the public auction, the Financial Agency announces the public invitation to participate in the auction which contains important information on the object of the sale and on the possibilities of viewing it. To access the services, you must have an adequate digital certificate, which can be personal or from an expert delegate. The first public auction begins at earliest 60 days after the publication of the invitation for participation, with participants who have advanced the down payment and electronically submitted the application for participation. It is particularly emphasized that this part of the previous procedure is exceptionally formal, meaning that even the slightest writing mistake in the payment order or in the execution date can make it impossible to participate in the auction.
Depending on when the procedure was initiated and the procedure itself in which the public auction is conducted, a real estate cannot be sold under four-fifths, or three-quarters of the previously estimated market value on the first auction, while movables cannot be sold below half of the estimated market value. The electronical collection of bids lasts ten working days and in that time frame the participants can increase their bid by certain amounts, where if the bid increase occurs in the last 10 minutes of the auction duration, the same is extended for the next 10 minutes and so until the last offer is received. The downpayment remains on the special account of the Financial Agency until the selection of the highest bidder and the full payment of the purchase price, after which it is returned to the rest of the participants.
If no one has participated in the first public auction or if the only bidder does not pay the purchase price within the established deadline, the second and subsequent public auctions are carried out. On the second public auction, depending on when the procedure was initiated and the procedure itself in which the public auction is conducted, the real-estate cannot be sold under three-fifths, or one-half of the estimated market value. On the third public auction, conducted for certain types of proceedings, the real-estate cannot be sold below a quarter of the estimated market value and on the fourth auction, the real-estate is sold for the initial price of 1,00 kuna. At the end of the electronic public auction, depending on the outcome of the same, the competent authority makes the appropriate decisions; of attribution of the object of sale to the highest bidder with data and terms for the payment of the purchase price, on the refund of the downpayment, on the choice of the highest bidder, on the suspension of the procedure and the like.
The electronic public auction conducted by the Financial Agency can be followed through the application Public announcements, in which sense it is very important to regularly monitor the publications for reasons of short periods. It should be emphasized that all documents publicly announced in this way are deemed to have been delivered to all interested persons at the expiry of the eighth day form publication.
The search for real estate and movable property sold at public auction is possible via the appropriate web application (Očevidnik nekretnina i pokretnina), in which all real estate for sale and movable property worth more than 50,000.00 kuna are entered.
As a result of attractive selling prices, generally below the market value of the item being sold, many investors regularly check public ads for purchases, both for their own use and for resale.