Balance Price real estate auction: how does it work?

Have you won an auction and now you have to proceed with payment? Read our article to find out how long do you have for the final price of a'real estate auction.

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What is the Price Balance?

The balance price represents the amount you must pay after winning a property at auction. This amount is calculated by subtracting the deposit paid to participate in the auction from the hammer price (which is between 10% and 20%). To this must be added additional expenses such as registration tax, the fee of the sales representative and any arrears of the debtor.

Terms and Deadlines for Payment of the Balance Price real estate auction

After having won the property and following the actual receipt of the award report, you have a limited period of time to make the payment of the balance price. Typically, this period is 120 days from the award of a judicial auction. However, in some situations such as bankruptcy auction, the deadline can be shortened to 60 days. It is essential to carefully check the terms in the court sale notice.

Consequences of Failure to Pay the Balance Price 

Failure to pay or delay in paying the balance price may result in serious consequences. You could lose the deposit paid in advance and not get the property sold. Additionally, the court may require you to pay the difference between the hammer price and the new sales price of the property.

Possibility of Extension of the Terms for Payment of the Price

NO, it is not possible to request an extension of the deadline for payment of the balance price. However, in exceptional cases, the judge could grant the possibility of paying the amount in installments for a maximum of twelve months, taking into consideration particularly serious reasons that complicate the payment.

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Balance Price of real estate auction with mortgage

One of the common causes of failure to pay the balance price is the successful bidder's lack of liquidity. It is therefore advisable to contact the bank to request a mortgage well in advance. The 2015 real estate foreclosure reform extended the deadline for final payment from 60 to 120 days, allowing more people to participate in auctions and obtain a mortgage.

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Before proceeding with the purchase of a house at auction, make sure you fully understand the terms and deadlines relating to the balance of the price. Consulting experts and professionals in the sector such as Aggiudicasa can help you avoid complications and ensure a positive and risk-free experience.

Are you looking for a property at auction in Venice, Padua or Treviso? Contact us. Our consultants will start a specific search to find the best offer that is right for you.

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