Auctions in enforcement proceedings now operating online

05 February 2021

On 1 February 2021, the portal started operating, where current auctions of Slovenian courts are published in one place.

Auctions in enforcement court proceedings have so far only been possible in the way that bidders were physically present at the auction site, so the introduction of an e-auction web portal is an important and welcome novelty in practice. The new system, intended for conducting auctions online, will provide all interested buyers with a search engine with quick, easy and free access to data on items sold in court proceedings, as well as location-independent and anonymous online auction by registering via the SI-PASS system. As wider access to public auctions will be ensured, it is expected that the circle of potential bidders who may not have decided to participate in person at court auctions so far will increase. The purchase at auction, carried out as part of the enforcement procedure, is one of the safer ways of purchase for buyers, especially due to absence of possible legal errors. The new form of conducting auctions will also prevent collusion and extortion between individual bidders. It is expected that greater competition at auctions could result in a higher price (higher yield), and this is in favour of both creditors and debtors - creditors' claims will be repaid and debtors' debt will be reduced to a greater extent.

All sales of real estate, movable property and rights that are made in court proceedings will be published on the portal , which will gradually replace publications on the websites of the judiciary and individual courts, depending on the sales deadlines in already published auctions. Bidding will be carried out completely anonymously and the system will operate 24/7.

The first online auction for the sale of real estate in enforcement proceedings will be possible in March. For now, online auctioning will only be possible for the sale of real estate and rights in enforcement proceedings, while for other types of proceedings there will be e-auctions on the web portal published data on sales in court proceedings, and more information on the method of teasing will be available from the public announcement.

Even though the buyer is guaranteed the acquisition of property rights when buying through an auction, we recommend checking the existence of possible rights in rem and obligatory rights of third parties before deciding on the possible purchase of real estate, movable property or rights at a public auction. Despite the purchase at public auction, not all rights that could restrict the new owner are automatically terminated.