Concept of Compulsory Auction
A "compulsory auction", a method of compulsory execution against real property, is a procedure taken by the court to seize and dispose of real property of a debtor and settle a monetary claim of a creditor with the proceeds thereof (Article 78 of the Civil Execution Act).
※ Compulsory execution refers to legal proceedings taken by government power to compulsorily exercise the judicial right of claim for fulfillment stated in an execution title at the request of a creditor.
Application for Compulsory Auction
A compulsory auction of real property shall proceed in order of ① application for a compulsory auction, ② ruling on commencing a compulsory auction, ③ decision on the completion period of demand for distribution and public notification thereof, ④ preparation for auction, ⑤ designation, announcement, and notification of the sale date and the sale decision date, etc., ⑥ auction, ⑦ procedure of decision on successful bidding, ⑧ payment of the sale price, ⑨ procedure of distribution of the proceeds, ⑩ and registration of ownership transfer and delivery.
- Application for compulsory auction
· A lessee shall file an application for a compulsory auction including the following information with the district court in the location of the real property (Articles 79 (1) and 80 of the Civil Execution Act):
1. Indication of the creditor, the debtor, and the court;
2. Indication of the real property;
3. A specific claim causing the auction, and a specific executive title which may be affected.
· The executory exemplification of an execution title and a certificate of registered matters of the real property registered as owned by the debtor shall be attached to an application for compulsory auction (Article 81 (1) of the Civil Execution Act).