In this article we look at how to identify encumbrances (cargas) in judicial and administrative auctions. Judicial auctions usually provide more detailed and specific information about the proceedings, whereas administrative auctions tend to provide more general documentation.
Documents in judicial auctions
The auctions portal provides two main documents:
1. Auction notice
The auction notice (edicto de subasta) is a court decision setting out the auction rules and the description of the asset. The key elements to analyse are:
- Court handling the proceedings: Includes its location and contact details.
- Name and number of the proceedings: For example, "Mortgage enforcement 1206 of 2021".
- Parties to the proceedings:
- Claimant or enforcing party (the one who is owed the money).
- Defendant or party subject to enforcement (the one who owes the money).
- Details of the asset being auctioned: Includes the description of the property, its value for auction purposes and its registry details.
The notice also sets out the auction rules, such as the percentage required for the deposit (5% of the asset's value) and the requirements for the award. These rules are similar across all judicial enforcement proceedings.
2. Land registry extract or registry certificate
The land registry extract (nota simple) contains the registered information about the asset being auctioned. The key points are:
- Registro de la Propiedad (Land Registry) and the registered property number.
- Description of the property: Includes address, floor area, share in the owners' community, etc.
- Owners of the property: Identification of the owners and their rights.
- Encumbrances on the property:
- Non-financial encumbrances: For example, rights of way.
- Financial encumbrances: Those with a financial impact.
These details are essential to correctly identify the property being auctioned and the encumbrances attached to it.
Example analysis of the notice and land registry extract
To illustrate this process, a real example was presented in which the following elements were analysed:
- Court details: Court of First Instance no. 6 of Mataró.
- Proceedings number: Mortgage enforcement 1206 of 2021.
- Property details:
- Registro de la Propiedad no. 1 of Mataró.
- Registered property 22,550, with its address and cadastral reference.
In this case, the description of the property was copied directly from the land registry extract into the auction notice.
Documents in administrative auctions
In administrative auctions, the documents provided are less detailed than in judicial auctions.
1. Administrative auction rules
This document is a generic summary of articles 100 onwards of the General Collection Regulation (Reglamento General de Recaudación). Although necessary, it does not include details specific to the case, such as the proceedings number, the names of the parties or the description of the asset.
2. Land registry extract for the property
In administrative auctions, the auctions portal does not always provide the land registry extract. In those cases, you need to obtain it by other means. The extract follows the same format as in judicial auctions and is crucial for identifying the asset and its encumbrances.
Conclusion
To prepare for an auction, it is essential to analyse the documents provided carefully, especially the auction notice and the land registry extract. They contain the information needed to identify the asset being auctioned, the encumbrances attached to it and other relevant details so you can take part well informed.
If you are unsure how to interpret this information, ask the court directly or use the resources on the auctions portal.
FAQ (frequently asked questions)
What is an auction notice?
It is a court decision that sets out the auction rules, the description of the asset and other relevant details, such as the court handling the proceedings and the parties involved.
What information does a land registry extract contain?
The land registry extract includes the land registry office, the registered property number, the description of the property, the owners and the encumbrances on it.
What is the difference between financial and non-financial encumbrances?
- Financial encumbrances: Financial obligations attached to the property, such as mortgages.
- Non-financial encumbrances: Restrictions with no financial impact, such as rights of way.
Why is it important to analyse the auction documents?
To correctly identify the asset being auctioned, the encumbrances attached to it and the requirements for taking part in the auction on an informed basis.
What should I do if the auctions portal doesn't provide the land registry extract?
For administrative auctions, you may have to obtain the land registry extract yourself from the relevant land registry office.