Luis Prados Ramos



As a consequence of the real estate crisis that we have all been suffering in recent years, there have been thousands of evictions due to non-payment of mortgage loans, which has caused banks to accumulate a huge amount of real estate, whose sole purpose is to sell them, because their business does not consist in accumulating patrimony, but in something very different, which, as defined by law, is receiving deposits or other reimbursable funds from the public and granting credits on their own account.

This situation can be analyzed from very different points of view, be they ethical, economic, legal... which could lead to very interesting conclusions, separately. However, in this entry I intend to make an economic-legal analysis of the investment opportunities that this portfolio of real estate existing in credit institutions may entail and whose sole purpose, as we have indicated, is its sale in the shortest possible time, with the possibility of obtaining some type of profit or of not accumulating expenses, since they would be a source of future losses.

In advance, I would like to point out, for the purposes of a better understanding of the matter, that although we are referring to the Bank, the same references would be possible for any other creditor.

There are three fundamental ways to structure the possible acquisition of the properties that the Banks have acquired due to non-payment of mortgage loans:

a.- That the Bank assigns the mortgage loan and the purchaser initiates or is subrogated in the foreclosure process.

In this case, when acquiring the credit, the acquirer or assignee acquires the position of the bank, and it must be the acquirer or assignee who initiates or continues the foreclosure, but that could end with the award to a third party that participates in the auction. , because in accordance with article 670 LEC, if the best bid was equal to or greater than 70 percent of the value for which the property was put up for auction, the court clerk responsible for the execution, by decree, on the same day or the day following, will approve the auction in favor of the highest bidder.

It is a difficult possibility for it to occur in practice, because today, there are usually no bids in auctions, due to the situation that the real estate market is going through, but it should be evaluated before making a decision, on the use this way to acquire a property.

In this case of the operation, the global cost of the operation would be broken down, in the cost of the assignment of the credit that would include the granting of the deed, the payment of the tax of legal acts documented by the same basis as the constitution of the mortgage , and the registration of the assignment of the credit in the Property Registry; and subsequently the tax corresponding to the adjudication would have to be paid, (normally in operations subject to and exempt from VAT the 10% of Patrimonial Transfer Tax) for the value of the adjudication and the inscription in the Property Registry, without having to pay deed, since the judicial document is directly registrable.

b.- That the Bank agree with a third party to transfer the property once it has been acquired.

In this case, we are dealing with a normal sale, in which a property is purchased from the bank, which has previously been awarded the property in a legal proceeding. There are few problems with this route, compared to an ordinary sale, except for the absolute convenience of checking the physical situation of the property and its situation in the IBI and community expenses, since it is very frequent that such expenses have been paid to us in a long time. . The truth is that in deeds of this type, banks usually assume the payment of expenses that may be pending until the sale, and simultaneously the buyer waives any type of sanitation due to defects, since the bank is not responsible for the situation. of the property.

c.- That the Bank agrees with the third party a price for the assignment of the auction.

Compared to the two previous positions, the transfer of the auction is a third way to acquire a flat from the banks, which presents a greater technical complexity, but which can be very favorable, since it is the most economical formula, from the fiscal point of view and to her we are going to refer a little more in depth.

The assignment of the auction is a contract by virtue of which the Bank, which is awarded a property in a foreclosure procedure, before the adjudication is final, agrees with a third party, who is the one who keeps the property. In this way, the Bank does not get to put the mortgaged property in its name, but the award is made in favor of the assignee of the auction, who pays the amount of the award, and charged to the amount delivered by the assignee, the bank collects from your credit. Through this transfer of the auction, it is as if the bank sold the farm, before putting it in your name.

The transfer of the auction is more fiscally attractive than the two aforementioned positions, because despite the fact that there are two transmissions in the fund, taxes are only paid for the acquisition of the final winner of the property, that is, for the one that remains as owner. of the farm, which will have to pay in the case of operations subject to and exempt from VAT, the property transfer tax (10%) for the adjudication value and the registration in the Property Registry, in the same way that the bank, but the creditor bank does not pay any tax for this assignment, as long as the assignment of the auction is verified under the terms of article 20 of the Regulations of the Property Transfer Tax Law, that is, this power must have been reserved in the act of the auction, which on the other hand is what the procedural legislation requires.

The doubts raised by the acquisition of a property by transfer of the sale of the auction derive from its scant regulation, and from the fact that it is not clear enough, which is why correct advice is essential.

legal regulation

The specific regulation of the assignment of the auction is found in the Civil Procedure Law, specifically in article 647.3. which literally says  “Only the performer may make a position, reserving the right to cede the auction to a third party. The assignment will be verified by an appearance before the court clerk responsible for the execution, with the assistance of the assignee, who must accept it, and all this prior to or simultaneously with the payment of the auction price, which must be documented. The same faculty will have the executor in the cases in which the adjudication of the seized assets is requested in accordance with the provisions of this law.”

Reading this precept can be a real puzzle for a person not very trained in enforcement procedures.

The particularities presented by the transfer of the auction would be the following:

1.- This route can only be used when the Bank has initiated the foreclosure procedure.

2.- It is necessary for the Bank to be awarded the property, either because it is the highest bidder in the auction or because of a lack of bids in the auction, request the award of the property, within the minimums established by the Civil Procedure Law. It cannot be used in the case of any other successful bidder, as happened in other times. This modification that derives from the urgent procedural reform of 1992 was justified in order to avoid auctioneers.

3.- The transfer of the auction must be carried out within the period determined by the court clerk, which is not established by law. For this reason, the most reasonable thing is that the assignment of the auction must be carried out within the terms established in article 670 LEC for the payment of the auction price, or within the terms established to request the award due to lack of bids, provided for in the article 671 LEC.

4.-  Formally, it is carried out before the court clerk, before whom the creditor and the assignee who accepts the assignment must appear, after which an award order will be issued in favor of the assignee, who will remain the owner of the property. Although the law does not say anything about the appearance of the transferor, it will normally be verified through the attorney.

In this appearance, the payment of the price to the Bank must be documented, since it is the final recipient of the money.

In any case, it is normal for there to be a prior contract between the creditor and the assignee in which they determine all those agreements that are convenient, including the price of the assignment to which we refer in the following section.

5.-  As in any other business, the price of the sale of the auction is set by the parties based on the rules of the free market and could be higher or lower than the award price.

However, judicial practice, at least in the city of Lleida, since I understand that it is not uniform throughout Spain, requires that in the act of transferring the remainder, it must be carried out strictly for the amount for which the claim has been dispatched. execution. For example, if the performer is going to be awarded a property with an appraisal value equal to 100, for 50% of the appraisal value when the auction is deserted, that is, for 50, some courts require proof that the assignment of the auction is has done for 50.

But the reality is that it is possible to negotiate with the bank that the value of the transfer is greater or less than the value of the award, either because there is a great interest of the assignee in acquiring that property, or because the bank is aware of that it is very difficult to obtain in the market an amount similar to the value for which the floor has to be awarded.

These circumstances must be recorded in a private or public document, but if the indicated judicial practice is followed, they most likely will not generate more than some opacity of the money, received and delivered, which could give rise to unwanted tax consequences.

Fortunately, the RDGRN of October 19, 2017, has clarified this issue, admitting that possible the assignment of the auction for an amount less than the adjudication price. Differentiate this resolution between ehe auction sale price and the auction or execution price.

(Yo) He auction price It is the amount of the best bid in the event that there are bidders in the auction;

(ii) he award price It is the amount for which the executing creditor acquires the property in the absence of bidders;

(iii) he auction sale price It is the amount received by the performer who transfers the auction from the assignee for the transfer of the property that has been auctioned off or awarded in favor of the former.

This resolution allows the assignment for an amount greater or less than that offered by the performer, provided that the award is made for the amount of the auction. In the decree, therefore, the adjudication price must be maintained, which is the one initially offered by the performer and which will be deducted from the amount claimed; and then it will be declared that the successful bidder has satisfied the performer for the assignment a smaller amount, identifying it. This payment will also have to be documented.

6.- Finally, to avoid the problem that the person interested in acquiring a property through the auction assignment procedure does not have sufficient funds to make the amount of the assignment effective, the Mortgage Law allows for the constitution of a mortgage on the right of the auctioneer on the properties auctioned in a legal proceeding. Once the auction price is paid and the domain is registered in favor of the auctioneer, the mortgage will subsist, falling directly on the awarded assets.

In this case, normally the bank that initiated the foreclosure procedure advances the necessary funds to verify the assignment of the auction, which is formalized through a public deed, with the guarantee that the mortgage that initially falls on a right, it ends up becoming a mortgage on the farm.

To constitute the mortgage, the Court Clerk shall immediately issue testimony of the decree approving the auction, even before the price has been paid, stating the purpose for which it is issued. The application will suspend the term to pay the auction price, which will resume once the testimony has been delivered to the applicant.

Updated this entry in Lleida on November 23, 2017.

Luis Prados.


  1. Good morning Luis
    I understand that fiscally the case of the assignment of the auction works as if it were a single transmission from the seized to the final purchaser.
    In the event that the apartment is seized from a third purchaser who is not subrogated to the mortgage, and who is the beneficiary of the sale of the auction.
    Would he have to pay ITP when the property is already deeded in his name and the ITP has already been paid at the time?

    1. Albert, I don't finish taking the question, because sometimes they talk about an embargo and other times about a mortgage. But you seem to imply that there is no transmission as a consequence of the execution, if that were the case, there should be no taxation. But I formulate the opinion with all the reservations that derive from not seeing a piece of paper.

  2. Is there an auction assignment when the performer is an individual and there is no debt, but the auction is a consequence of the application of art.400 of the cc on dissolution of a condominium?

  3. Good morning Luis.
    For the acceptance by the purchaser of the assignment of the auction and the subsequent acts, is the intervention of a solicitor and lawyer necessary?
    On the other hand, in the case of an acquisition by virtue of a judicial decision, I understand that the tax administration cannot enter to verify values and that, therefore, it will be taxed on the amount of the sale of the auction. Is it so?
    Thank you so much.

    1. These are procedural issues in which I do not have much experience, but in principle the intervention of a lawyer is not necessary, since it is a contract. Traditionally it has been considered that the setting of the price at auction is objective, but I understand that the Treasury has sometimes messed with it.

      All the best

  4. Good morning Luis:

    I have a question about the deadlines to make the transfer of the auction. In the case of an auction without any bidder in which the creditor (in this case the bank) is awarded the property, if I'm not mistaken there are 20 days for the creditor to assign the auction to a third party. Do those 20 days begin to be counted from the day of the auction or from the day the creditor (the bank) receives the order from the court in which the award is notified?

    Regards thank you very much.

    1. Thank you very much for following us. Regarding your question, I refer to the text of the entry,

      3.- The transfer of the auction must be carried out within the period determined by the court clerk, which is not established by law. For this reason, the most reasonable thing is that the assignment of the auction must be carried out within the terms established in article 670 LEC for the payment of the auction price, or within the terms established to request the award due to lack of bids, provided for in the article 671 LEC.

      And above all communication with the court.

  5. Hello, thank you very much for the article, which has been quite clarifying, but I have several doubts:
    In the case of an execution by a bank, in which the bank has awarded the property, for 70 percent of the value, and if the auction is not transferred, does it have to pay the tax, or can it transfer the auction to your real estate agency, and it does not make any tax payment effective, until its subsequent sale to a third party, and through VAT?
    If the property is awarded, on what amount would the same bank pay, that tax, for the value of said award?
    If the sale is made for less than the costs provided for in the amount of the auction, and the bank does not object, who pays those costs?
    For a movable asset, which is not a habitual residence, can the bank award it to you for 50 percent, instead of 70 percent?
    And above all, if the bank is awarded a property for that 70 percent, can it give up the auction for a lower amount?
    Thanking you in advance for the clarifications, best regards.

    1. Many of the questions are already answered in the article. The auction award pays taxes on the award value. If the auction is transferred, only the final winner pays taxes. The assignment must be made, in principle for the same value. Thank you very much for following us

  6. Great post and very instructive. A few years ago I was very much in favor of auction assignments by financial institutions, but now I am not so much and it seems that they are not either, probably because they have found a better client, the SAREB, which accepts without question everything that put him ahead.

  7. Hi, I find the article very interesting but I get lost in the language... I would need advice because I have the situation that you describe and I am completely lost, could you contact me somehow?

  8. Simple question…if bidders appear but they offer bids below 70 % in an industrial warehouse, is there a minimum % set by law or is it the one agreed upon by the Secretary after hearing the parties?
    What happens if the Auction is deserted?

  9. Hello Luis, we are individuals to whom a real estate company offers us a property that to achieve it we would have to carry out an auction. The former owner would provide us with access to the property.
    We think that we would need legal advice to carry out this process. I understand that the services of a notary are necessary for the deed of sale and also for the subsequent mortgage.
    In this case, can the notary advise us throughout the process?
    We are from Lleida. How do these services work?
    I would like you to inform me
    Thank you

    1. Good morning,
      If you still need support for the transfer of auction, you can send me an email to I have experience in auction assignments with financial institutions and we will be happy to help you. We are in the province of Girona but we work throughout Catalonia.
      All the best.

      1. To the blog writer:
        Luis, sorry for putting a message offering our services as a comment. I realized after putting it, that maybe it was not appropriate. If you think it's not the right place and remove it, I totally understand. The blog is very well explained. Thank you so much.
        All the best.

  10. Alma Maria Simon

    I'm María. I would like to know if the executed person can file an appeal against the transfer of the auction or actions that he can do later to continue living on his property. Thank you.

    1. You might want to check with a lawyer to find out if your mortgage has been securitized, sort of sold to a fund, and check that it was done before you start the foreclosure process. If so, the entire procedure could be null and void, due to the lack of legitimacy of the person who initiated the process

  11. Good morning!
    Fantastic exhibition and very well explained, just one question that I think has not come up for debate... if the auction is transferred to a third party by the executing bank, I imagine that art still applies. 105.1 c) of the Consolidated Text of the Law regulating Local Treasuries, right? And therefore the foreclosed party (as long as he meets the legal requirements) would be exempt from paying the IIVTNU (municipal capital gains), even if the property has not been put in the name of the bank, and the third party to whom the auction is transferred is not the one who granted it. the loan?
    Or could the transmission tax be transferred to the third party?

    1. The assignment is fiscally neutral. You do not change the taxation of an execution process, which will be the same.

      Thank you very much for following us and it gives us enormous satisfaction that our work is useful.

  12. Mr. Prados, good afternoon, as a tenant I am in the middle of a foreclosure process and the judge has understood that the 5-year contract that I signed with the owner in good faith is fraudulent, so I will have to leave the house when this is awarded to the bank, my question is the following, can I negotiate your purchase with the bank at this point in the process, do I have to be the one to contact them? Do I need a professional to negotiate? The house is located in the province of Barcelona?
    All the best,

  13. Good morning. Congratulations on exposing the topic and all the subsequent clarifications. My daughter is already an Assignee of an Auction Assignment and now she is pending the Award Order of the apartment. When you have to pay the Property Transfer Tax (we are in Galicia) you will be able to benefit from a discount on the type of tax since apparently you meet the requirements for it: under 36 years of age, it will be your habitual residence, etc. However, one of the requirements is that the acquisition must be formalized in a public deed and I understand that for this a Notary must intervene, that when the Assignment of Auction is formalized in the Court, this means that the acquisition is carried out -that is the nuance- by means of a public document (not a deed). In your opinion, could this fact mean the loss of the bonus? Or will the spirit of the rule that is to benefit those under 36 years of age who acquire a habitual residence be imposed? any advice?. Thanks in advance and best regards.

    1. It is very difficult to answer him. The administrations when they have to collect, discuss little. Perhaps the best thing would be to present the acquisition with the bonus, and wait for them to make me the complementary one. I believe that there should not be a sanction, the risk is paying the late-payment interest, which is not very high.

  14. Hello again. I have just made a query but I make another one -also about the Assignment of the Auction- but addressing another topic. The article sets forth the procedure provided for in the event that the Assignee requests to establish a mortgage on its right to the auctioned property and to it assigned. In the case of my daughter (the Assignee) the Auction Assignment Price has already been paid and the Award Order is awaiting. Although the Price is satisfied, the Assignee is interested in constituting a mortgage but it is difficult for me to interpret art. 670.6 of the LEC because, on the one hand, it says that "When a claim is made to establish the mortgage... the Court Clerk will immediately issue testimony of the decree approving the auction, even before the price has been paid, stating the purpose for which is issued" which is perfectly understandable, but it immediately says "The application will suspend the term to pay the auction price, which will resume once the testimony is delivered to the applicant" which confuses me because it implies that the price has not been paid of the auction and, consequently, does not contemplate the case in which it is, as is the case in this case. What do you think?. thank you very much again

    1. Really, every time they have tried to make a mortgage on the auction right, it has been so complex that they have ended up giving up. The logical procedure is to pay the assignment with the amount given by the bank, and in this way the mortgage on the assignment becomes a mortgage on the property.

      In practice, you always end up resorting to formulas such as bridging loans and similar things,

      Perhaps better communication between courts and notaries would speed up the figure a lot.

      All the best.

    1. It is a difficult question, because the licenses are transferable, with notification to the town hall. But I do not think that it is directly transferable by the fact of acquiring the property

  15. Hello, once the bank has transferred the property to its own real estate agency and it is released to the public, is there any legally regulated procedure to award it to a third party? I have heard that there is a transparency period, that if there is more than one interested party, it is auctioned, that if the fish is previously sold... but I don't know anything else and I am interested in one of these properties. Could you clarify all these doubts? Thank you so much.

  16. Julio Torrell Rodriguez

    Good afternoon Mr. Prados:
    I return to "abusing" your time and knowledge.
    In an auction assignment of a flat by a Financial Institution, it is more than likely that the debtor of the mortgage loan -object of the foreclosure process- is not up to date with the payments related to that flat, such as IBI, collection fee of garbage, community of owners, etc. (In the case of an apartment already awarded whose assignee is my daughter, this is the case).
    I understand that the Financial Institution is responsible for such payments when an Auction Assignment occurs, am I correct? If so, until when, until the Testimony of the Adjudication Order is issued? What is the legal support that should be cited if necessary?
    It is a matter of great interest to the extent that such unpaid receipts could be claimed from the assignee over time.
    Thanks in advance and best regards

    1. The bank would be responsible from the moment it is the owner. If there is an auction assignment, I don't think he would become the owner, not even within the term of the assignment. What you should keep in mind is that those outstanding debts, which may have a limited effect on you, insofar as they have a credit preference (between 1 and 4 years, depending on the case), you should value them to discount them from the price or to know what you will have. to pay something more than what was agreed.

      The original debtor would be responsible, but if he is insolvent, he gives me that it would be very difficult to collect from him.

      Greetings and thanks for following us again

  17. Hello, I have a question about the transfer of auction to third parties. A year ago we acquired a mortgage loan from a bank. We are now starting the foreclosure process in accordance with Law 15/2015 of Voluntary Jurisdiction, and therefore the notarial auction will proceed. The fact is that we want to sell the auction to another company that pays us with a guaranteed promissory note. Can we accept a promissory note with a maturity of 12 months as payment for the assignment of the auction right? Or should the purchaser pay us the agreed price in a bank check?

    Thank you.

    1. You can accept the promissory note, but in principle the creditor must collect cash. That's if, since you are the creditors, I don't see any problems doing it, but I think it would be better if you ask who is doing the auction.

  18. Hello. My question refers to the auction assignment in administrative auctions, specifically in Social Security. If I buy a garage space at auction and then I give up the auction, both of us have to pay the ITP or only the transferee has to pay it, that is, the one who permanently keeps the space.

    Thank you so much

  19. Good afternoon,

    I want to buy a home that is in foreclosure proceedings, the mortgage holder is a bank and I would like to buy directly from that bank.
    If I do it through the sale of the auction, do I have to wait for the house to go to auction and then carry out the sale of the auction or can it be done without an auction?
    Subsequently, would I have to wait a long time for possession and keys to be delivered to me?
    The house has tenants, could you kick them out by paying them the corresponding compensation that appears in the contracts?
    I want to know how quickly and easily I can acquire the house, when there is still no auction date and it is only in foreclosure proceedings in the courts?

    Thank you very much, regards

  20. Good morning,
    If I buy the loan, I would assume a lot of uncertainty, what I want is to buy the house and in the simplest way.
    If I carry out through the sale of the auction, do I have to wait for the house to go up for auction? Then would I have to wait until I could enter the house and the court handed me the key, with the long and complicated procedures of the courts?

    Thank you,

    1. The assignment of the auction requires that the bank be awarded. Once you have that, the procedures are not difficult, if you do not have financing. The issue of possession of the home is another matter to assess, because if it has not been abandoned by the debtor, the release is not something immediate

  21. Good night.

    I would like to buy a home and the salesperson has told me that it is a home that has been repossessed and already awarded, the salesperson comes from this person.
    According to what he told me, he wants to sell it before having to notarize it in his name, according to what I have read, it would be a transfer of the auction, right?
    With a transfer of the auction, could you contract possible charges that the house has or is it supposed to be free of them? How could I check this? I'm very lost. Greetings, thanks.

    1. If you acquire by assignment of the auction, all subsequent and non-preferential charges to the one that is executed, would be extinguished, but not the previous ones. A more founded answer would need to see documentation, and this blog is not the right medium for it.

      1. It is what has not understand anything about the subject, I do not know where to start. I will request a simple note to see the possible charges and I will consult with a professional in the area.
        Thank you very much for your attention.

  22. Thank you, first of all, for the information, but in an auction assignment to a third party that is an API that the creditor (the bank) is using in a masked way, I imagine that it could be legal fraud and that surely without the intention of registering in the R. of the Property until the property is sold, what risk would you run by not doing so? This practice is very common now, is there any action against it by the foreclosure defendant?

  23. Good morning.
    I appreciate the blog and your comments to help guide us minimally. I am in a situation of attempting an auction assignment from a bank in an auction that was deserted and where the court clerk has not yet approved the auction in favor of the bank. The bank gives me a figure and a VAT that is supposedly 21℅ to pay to give it to me. My doubt, beyond the figure is because of the tax issue. If there is a transfer, I understand that it is not a sale, so there is no reason to have a VAT, but the only tax would be an ITP of 10℅. In the event that this was wrong, if I paid that VAT, would I additionally have to pay an ITP to put it in my name, that is, double tax?

    Thank you very much for the help

    1. I would only pay once, that is what we say at the entrance and that is what is interesting about the transfer of the auction. Regarding the issue of whether it is VAT or ITP, it will depend on the nature of the good. The most usual thing is that it is ITP, but with the data that I have, I cannot answer. All the best

  24. Hello,

    Thanks for the blog. Related to a previous question about taxes (urban plot in bank auction assignment, in my case I am an individual), being the final auctioneer private, I understand that it is subject to 21% VAT (and not to ITP), is this correct? Any way to make it ITP to save taxes?

    If the original debtor is a bankrupt company, to whom is the payment of that 21% VAT made?

    Thank you very much again,

    1. I think that you can take advantage of the reverse charge, so that the VAT would be passed on to yourself (which means not paying it)

      The taxpayer is the person in whose favor the operations are carried out:
      e) In the case of the following deliveries of real estate:
      – Deliveries made as a result of a bankruptcy process.
      – The exempt deliveries referred to in sections 20 and 22 of article 20. One in which the taxpayer has waived the exemption.
      – The deliveries made in execution of the guarantee constituted on the real estate, also understanding that the guarantee is executed when the property is transferred in exchange for the total or partial extinction of the guaranteed debt or the obligation to extinguish the aforementioned debt by the acquirer.

      Be careful though, this is not professional advice or opinion. Just a wake up call. All the best

  25. Good morning,
    Your blog and article are very interesting. I have a question that I would like to ask you. Given that only the transfer of the auction to the performer is allowed, in the execution of criminal proceedings it could not be contemplated because the one who executes is the State, right?

  26. Hello and thanks for the blog. In my case, I belong to a Cooperative Society that plans to acquire building land that is urbanized next month. It is currently on sale at auction by the bank and we entered as a third party to acquire it. They have told us that a part of the operation is taxed by VAT and that another part is exempt from VAT, and therefore is taxed by ITP. The passive subject is a bankrupt company. With the information that I have read and thanks to this blog, I believe that our entire operation could be subject to VAT and not have to pay part of it for ITP. Thanks in advance.

    1. In my opinion and from what he tells us, the operation is subject and not exempt, if it is a plot, but as you can see in the previous answer, I think there may be a reverse charge. Watch out.

  27. Hello, thank you very much for the blog.
    The blog has helped me a lot because we are looking for a flat, what we are looking for the most is bank housing or that is why your contribution is very useful.
    I am going to ask him about the houses that are in court and not acquired by the bank.
    You can access them knowing which bank belongs to and the correct address.?
    And if so, could you guide me how to proceed in this case.
    Thank you very much in advance, greetings
    By the way I'm from lleida

  28. Hello, first thanks for the blog.
    The case that concerns me and that I think is quite frequent, is the following: I was awarded my home by auction and now the community of owners requires me the debt of the previous owner and debtor. I have told the community administrator that this debt corresponds to the Bank. My question is obviously, who has the obligation to pay the debt of the former owner, and on the other hand, if in order to claim said debt from me, the collection from the former owner must first be declared unsuccessful.
    I look forward to your response and thank you very much for everything.

  29. Good afternoon, I am interested in a house whose owner is a bank, I have a simple copy of the property registry, but I do not understand it very well, the house was going to go up for auction in a few months, we have been informed in the bank itself, but when we were interested in it, they told us to call us first and show it to us and tell us the price, this has been going on for three weeks, and I am without a living, my question is... what price can they set, what Does it come in the simple copy, as priced for auction? Or can they increase the price? What expenses do we face? Well I hope I have explained myself well! Thank you

  30. Hello, thank you very much for your blog, it is great to be able to understand things that escape us because they are complicated and because they are not common.
    My situation is as follows: we are interested in acquiring an apartment by transfer of the auction. We have seen the apartment, you are free of charges and it has been auctioned due to disagreement in a divorce, the successful bidder is the husband who would now give us the auction.
    The court has issued ordering procedure so that in 20 days the performer/husband executes the assignment of the auction, prior to or simultaneously with the payment of the price. He does not charge us for the assignment, but I understand that we must pay the price at that moment, yes or yes, right?
    We need a mortgage to be able to pay it. How do you apply for a mortgage in this situation? The banking entities to which we have turned tell us that they are unaware of the procedure.
    Likewise, I would appreciate it if you could tell me if you know someone who could help us in the Valencia area.

    1. The mortgage on the transfer of the auction is not really used, and financial institutions usually resort to what they call a bridge loan. For the rest, without seeing documentation, as you will understand, I cannot issue any opinion.

  31. Good morning,

    Our situation is particular, there is a farm in the name of a company in which a foreclosure lawsuit has been filed by the bank. In this procedure it has been auctioned and the only bidder was the bank, so the auction path is opened in favor of a third party.
    For us, this purchase opportunity has come to us through a real estate agent and my question goes a bit towards that topic... What would be the logical and legal order of the process? because commissions are being charged to the agent, the lawyer handling the process, and also the owner (who is still occupying the house) as an "agreement" to leave the house in good condition when the transfer of purchase is executed… Do I explain myself?

    1. All those amounts that exceed the award value, as I explain in the article and due to the tendency of the courts to admit the assignment for that amount of the award, black money must very surely be paid, unless they give you the invoices for other services. Other than that, it's up to you to negotiate.

      1. Hello again and thank you very much for your time. We have made progress in the process and now we find that NO Bank (except the one in the auction, of course) accepts a mortgage on this house even though there is a contract that indicates that it will be free of charges at the end of the process... This situation generates 2 Doubts, on the one hand, whether it really is a process with so much risk that no bank wants to get involved (are we overlooking any risk that we should take into account?)... And on the other, how to continue if not there is no one who finances us...

  32. Good morning,

    And what would happen if there is a second mortgage on the mortgaged asset?
    In other words, the apartment has been awarded by means of an auction transfer to a third party who now demands it as his own once the agreed amount has been paid to the bank. But it is that this same apartment had a second mortgage with another bank.
    Is it necessary to continue paying the second mortgage when the property is no longer ours, but rather
    awarded to someone else?

  33. Thank you very much for the information. Can the auction be transferred in the event that the debtor of the house has initiated an appeal against the auction for not being satisfied with the amount of the auctioned property? Can the bank sell in this case while the amount is being settled and if so, what risks does the auctioneer have?

  34. Good afternoon, I have a question, is it possible that after the sale of the auction, ex officio, the file of the procedure for abusive clauses in the mortgage loan is agreed? What can be argued against said resolution? Thank you so much

  35. Good afternoon, I have a question about which I can't find information about it. This past Monday there was the first auction of my apartment, it was deserted, but the bank has requested to assign the auction to third parties. My question is the following: My ex-husband having stopped paying the mortgage (collecting more than 60,000e in 2012) and I having use of the house for an indefinite period and receiving a compensatory pension of 500e, could he buy the house or your boss who was the builder? And if it were illegal, what measures could I take? Thank you very much for your valuable time. All the best

      1. Good morning Mr. Prados. I did not think that you You will not need any documentation about it. It was just a question of a Yes or a No. Perhaps I extended myself by exposing my doubt. If you would be so kind as to answer me, I would greatly appreciate it. The question if you allow me again would be: Could a person who has lost their house and been auctioned (deserted) negotiate a price with the same bank to buy it back? Thank you so much.

  36. Good afternoon, first of all, congratulate you on your disinterested outreach work.

    As I pointed out in the entry, for the transfer of the auction the amount of the auction can be negotiated with the bank, and in this case a lower price (suppose €300,000) has been reached than the value dispatched for the execution (€400,000). . Therefore, as there is no transfer to the bank, but rather the property passes directly to us and we pay the €300,000 to the bank for the property, the question is whether the tax base of said purchase, and for which indirect taxes that are Is it the €300,000 paid for the transfer of the auction or the €400,000 of the value of the execution? I understand that it would be €300,000 for what is mentioned in the aforementioned RDGRN of October 19, 2017, right?

    Thank you very much in advance

  37. Good morning,

    In the case that it is assets from bankruptcy administration at auction. And the court has issued a successful bidder with all payments and others in the absence of the issuance of testimony by the merchant.

    As it is possible that the good passes to third parties in the auction process and neither performer, bidder and others do not receive communication. Now the administrator calls saying that the asset cannot be awarded when it belongs to the bank, although it is true that the court has not declared itself approved.

    All the best

  38. Good afternoon,

    Thank you very much for this informative work, it is perfectly explained despite the complexity of the matter.
    The question that I would like to ask you would be the following: Can the award price prior to the sale of auction be less than 50% of the appraisal value? Once awarded, could there be a surplus for other creditors of the first owner?

    1. There are minimum allocations, based on the appraisal value, depending on whether or not it is a habitual residence. If there is a surplus after the debt has been paid, it corresponds to the holders of subsequent charges

  39. Hello good evening. I am interested in a house that was auctioned and not yet awarded (waiting for the judge's order). The auction had 3 independent lots. 2 of them correspond to said home (house plus garage), I don't want the third. The creditor is not a bank, but a company. The house had an X bid.
    The garage had none. They tell me a price for both, higher than their adjudication, indicating that I would have to make an auction sale. I would like to know how to make sure of the charges of said properties and what I would have to pay, apart from the money of the clear agreement. Regarding taxes, what would be an 8% of the adjudication value?

    Greetings and thanks.

    1. It is very difficult for me to answer without seeing the documentation. In principle, all the loads after the one that is executed will be extinguished, but not the previous ones, so you must check the range of the load executed. The tax will be the ordinary of the corresponding autonomous community.

      Greetings and thanks for following. I inform you that shortly I will be in the Community of Madrid, in case it might interest you.

      1. Thank you very much for your reply. My community is Andalusia. Regarding the tax, I was referring to whether the % is on the agreed value, on the awarded value or on the appraisal value?

  40. First of all, thanks for this page that clarifies many doubts, I will explain mine to you if an auction due to non-payment of the mortgage of an unusual home, the auction value is 220,000, the debt is 77,000 and there are no bidders, according to the article 671 of the LEC may be awarded by the bank for 50% or for the total debt, according to this interpretation it may be awarded for 77,000 which is the total debt, or at least it has to be 50%.
    Regards, and thank you very much

    1. There has been a recent resolution of the DGRN on March 23, 2018, which has indicated that whether the auction is deserted or if there are other bidders, and whether or not it is a habitual residence, it is not possible for a farm to be awarded for less than 50% of the appraised value.

      1. Thank you very much, it was for speaking with the creditor bank and requesting the transfer of the auction, but if that is the case, it is not feasible because the 50% of the auction value is much higher than the market price of that home, since the value they have used is the auction value in the deed of purchase that is from 2008 and the price is super inflated, the appraisal price today is one third of the auction value.
        All the best

  41. First of all, thank you, Mr. Prados, for your web didactics. The second thing is to express my astonishment because for a few years now a -in my opinion- tax irregularity has been taking place that causes the coffers of the autonomous communities to lose millions and millions of euros, money with which they can meet certain expenses in health, education and social assistance. The assignment of auction to a third party, in foreclosures, is a real strainer to reduce the corresponding tax payment. The winning financial institution should pay certain taxes, but its auction assignment to its real estate companies - one hundred percent of its own - means that they are eligible to pay the reduced rate that all the autonomous communities of Spain contemplate, as these properties are subject to the main corporate activity, which makes, as I said before, withdraw large amounts of money to their coffers to the serious detriment of their accounts and the service they are obliged to give to their citizens. Is this issue not publicly denounceable?

  42. Good morning,

    First of all, thank you for this consultation space.

    Our case is that of a judicial auction of a real estate development that went bankrupt and the bank was left, then it was integrated into the assets of the SAREB and finally ended up in the hands of a fund that carried out the judicial auction.
    The house has never been inhabited, but they have been transmitted on 3 occasions.
    La pregunta es relacionada con el impuesto a pagar en este caso, ITP o IVA.

    Thank you,

  43. Hello,
    Es muy interesante este post y quisiera hacerles una pregunta a nivel fiscal de la cesión de remate.
    Si una piso se lo adjudica un banco por 120.000€ al quedar desierta la subasta y luego hace una cesión de remate a un particular por 75.000€.
    ¿Porque cantidad ha de pagar el particular ITP del piso por los 120.000€ (cantidad de adjudicación) o ¿por el precio de cesión de remate 70.000€?.
    ¿La administración que criterio tiene?

  44. Las informaciones de este Blog son excelentes y deberían servir como pauta de funcionamiento para los Bancos. Las modificaciones de la Ley Hipotecaria se hacen siempre para beneficiar al ciudadano y facilitar el acceso al crédito. Una hipoteca sobre el derecho de remate haría viables muchas operaciones y haría más democrático el acceso a la vivienda.

  45. Excelente artículo, como todos los del blog.
    Uno de los comentarios es muy acertado, afirma que el SAREB lo acepta todo y tiene toda la razón del mundo.
    Me pregunto si tras haber cedido el remate el ejecutante y siendo que la escritura de préstamo hipotecario contenía cláusulas abusivas es viable iniciar un incidente de nulidad de actuaciones para retrotraer el proceso al momento en el que, de oficio, debieron ser analizadas y expulsadas del contrato dando lugar con ello a la nulidad de actos posteriores permitiendo al ejecutado forzar al ejecutante a acudir al procedimiento declarativo ordinario.
    Muchas gracias ,saludos.

    1. Muchas gracias por sus palabras. De todos modos, la cesión del remate, se produce con el procedimiento de ejecución casi concluido. Sin ser procesalista, me parece que los tiempos de alegación de clausulas abusivas han transcurrido.

      All the best

      1. Good morning Luis

        Gracias por tu respuesta
        Totalmente cierto, los plazos han transcurrido. Sin embargo, muy recientemente, el TC ha devuelto al momento anterior al estudio del clausulado un procedimiento, ya que entiende se vunera el 24.3 CE por ser una obligación del juez entrar a conocer las cláusulas abusivas.
        Creo que habrá que esperar un tiempo para conocer si los jueces aceptan “volver a estudiar” las cláusulas.
        Enhorabuena por el blog, muchas gracias.

  46. Buenas noches y mi más sincera enhorabuena por el blog.

    Tengo un local en procedimiento de ejecución hipotecaria por impago de préstamo bancario. He recibido un decreto del juzgado (sólo dice eso, “DECRETO”) en el que se me notifica que tras quedar desierta la subasta, el banco acreedor solicita la adjudicación del local -que le es concedida- y la cesión del remate a una inmobiliaria (del propio banco). La letrada de la Administración de Justicia convoca en el mismo auto al procurador del banco para aceptar el remate.

    Mi duda es si este auto serviría como título de transmisión, si a partir de este auto comienza a correr el plazo de treinta días para presentar la plusvalía municipal.

    Muchas gracias, D. Luis.

    1. Entiendo que debe haber otro documento posterior. De todos modos, no consideré esta breve respuesta como una opinión profesional, la cual sólo puede darse a la vista de toda la documentación necesaria.

  47. A ver unas dudas que tengo, y gracias por adelantado sobretodo, el banco va a pasarme una cesión de remate, de la primera entidad, este piso tenia otras cargas de una segunda hipoteca de otro banco, que en la subasta salian las cargas, ahora cuando me pase la cesión, entiendo que yo pagaré el itp (o seria el banco) y las cargas quedarían todas saldadas? Y el ibi , escalera etc? Son muchas preguntas

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