Introduction

Existence of a claim

Issuance of enforcement order (writs of execution)

Existence of seizable assets or claims

Conditions of enforcement

Judicial authority

Other authorities

Competent authorities and persons

Operations

Difficulties in enforcement

Implementation of compulsory enforcement

General regime of enforcement procedures

Concept of penalty

Scope ratione personae

Material scope

Determination of penalty

Competence of judge

Powers of court

Effects of ruling ordering or rejecting penalty

Pronouncement of penalty

Substantive conditions

Procedural conditions

Role and powers of the judge

Effects of liquidation judgment

Liquidation of the penalty

Penalty

Conditions of implementation

Contesting the measures

Ordinary law on protective measures

Protective seizures

Judicial security interests (sûretés judiciaires)

Specific regimes

Interim protective measures (mesures conservatoires)

Seizure of claims for sums of money

Seizure of tangible movable property

Seizure of intangible rights

Enforcement measures on movable property

Real estate seizures

Evictions

Enforcement measures on real estate

Enforcement measures

5. Civil Enforcement Procedures

The adjudication of the property takes place at a public auction during the judge's hearing . As recalled by Article L. 322-6 of the Code of Civil Enforcement Procedures, the starting bid amount was set by the pursuing creditor. It is the one listed in the schedule of conditions of sale  and may have been modified, if necessary, at the debtor's request in case of manifest insufficiency with regard …

Starting price of property at auction

The adjudication of the property takes place at a public auction during the judge's hearing . As recalled by Article L. 322-6 of the Code of Civil Enforcement Procedures, the starting bid amount was set by the pursuing creditor. It is the one listed in the schedule of conditions of sale  and may have been modified, if necessary, at the debtor's request in case of manifest insufficiency with regard to the market value of the property and market conditions . Furthermore, the pursuit costs duly justified by the pursuing creditor and, if applicable, by the overbidder must be taxed by the judge and publicly announced before the opening of the auction. Nothing beyond the amount of the tax can be demanded. Any contrary stipulation is deemed unwritten . In addition to these financial conditions, the sale is subject to a number of conditions.

In principle, any person can be a bidder if they provide payment guarantees . In fact, a bid made in the name and on behalf of a company being formed is not subject to invalidity in the event of the adoption of acts, as it is deemed to have been concluded from the outset by the company subsequently registered . However, Article R. 322-39 prohibits the seized debtor, legal auxiliaries who have intervened in any capacity in the proceedings , and judges of the court before which the sale is pursued from being bidders, either directly or through intermediaries . This list is supplemented by a series of incapacity-sanctions provided for in Article L. 322-7-1. Not covered by these prohibitions, the pursuing creditor, including if it is a diocesan association, can become the purchaser of a property through a bid .

Furthermore, bids must be made by an attorney registered with the bar of the Judicial Court before which the sale is pursued, who can only hold a single mandate . Pursuant to Article R. 322-41, before making a bid, the attorney must receive from their principal, against receipt, an irrevocable bank guarantee  or a bank check made out to the order of the escrow agent or the Caisse des Dépôts et Consignations according to the indications in the conditions of sale, representing 10% of the starting price, with the amount of this guarantee not being less than EUR 3,000 . Furthermore, before making a bid, when the seized property is a residential building or a business establishment open to the public for total or partial accommodation use, the attorney must also obtain from the principal a sworn statement indicating whether they are subject to any of the penalties mentioned in Article L. 322-7-1 and, when the principal is an individual, whether the property is intended for their personal occupation. If the principal is a real estate civil company or a general partnership, they must also indicate whether their partners and corporate officers are subject to any of these penalties .

The court recalls that the bidding will start from the reserve price set, as applicable, in the conditions of sale or by the judicial decision rendered upon the request of the seized debtor in case of a manifest insufficiency of the reserve price . In no case can the enforcement judge set a starting price lower . The bids must be straightforward, and each bid must cover the preceding one . Bidding stops when ninety seconds have elapsed since the last bid. This time is counted by any visual or sound means that signals to the public each second elapsed. The judge immediately records the amount of the last bid, which results in adjudication . Before the end of the hearing, the attorney of the last bidder is required to declare to the court clerk the identity of their principal and provide their sworn statement . Disputes regarding the validity of the bids are made verbally at the hearing, through legal representation. The judge rules immediately and, if necessary, resumes the bidding . Any new bid regularly made covers the invalidity of previous bids, but the invalidity of the last bid automatically results in the invalidity of the adjudication .

In the absence of a bid, the pursuing creditor is declared the purchaser ex officio at the amount of the reserve price they themselves set , even in the event of judicial review . These provisions have not been deemed to infringe upon the debtor's right to property .

Cass. 2e civ., 18 February 2016, LawLex202300010378JBJ, considering that the deposit of a sum in a CARPA account cannot be equated with an irrevocable bank guarantee.

This sum is returned to him at the conclusion of the auction hearing if he has not been declared the successful bidder, or remains allocated to the creditors participating in the distribution and, if applicable, to the debtor to be distributed to them along with the price of the property, when the successful bidder defaults.

CPC exéc., Art. R. 322-43, referring to Art. L. 322-6.

Cass. 2e civ., 19 February 2015, LawLex202300003950JBJ.

Cass. 2e civ., 24 September 2015, LawLex202300004128JBJ, emphasizing that the enforcement judge has sovereign power allowing them to disregard both the assessment of the pursuing creditor and that of the debtor.

Cass. 2e civ., 12 April 2018, LawLex202300010988JBJ.

Cons. constit., 16 December 2011, No 2011-206 QPC, LawLex202400003759JBJ.

Cass. 2e civ., 10 September 2009, LawLex202200003616JBJ.

See, in this sense, Cass. 2e civ., 18 October 2012, LawLex202300010375JBJ.

Cass. 2e civ., 3 May 2007, LawLex202400003737JBJ, noting the invalidity of a declaration of overbidding made by a real estate civil company where the seized party is the manager and whose creation constitutes a fraud aimed at thwarting the sale by auction; 15 November 2012, LawLex202400003738JBJ.

Cass. 2e civ., 6 December 2018, LawLex202300003953JBJ.

5. Civil Enforcement Procedures

152. Starting price of property at auction

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Les décisions de justice citées dans ce paragraphe :

Les notions juridiques connexes

152. Starting price of property at auction

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Les décisions de justice citées dans ce paragraphe :

Les notions juridiques connexes

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