What is an extrajudicial auction ? What is the difference between a judicial auction and an extrajudicial auction? How can I find out if my property, vehicle, or any other personal item has been auctioned off in this way? Is a seizure order issued for a vehicle or property when the item is not subject to a court order?
When it comes to auctions, many questions can arise. In fact, it's quite common. These events happen from time to time, and those who participate in one don't always go on to participate in another. As a result, many people simply seek to make a purchase and never participate in these events again.
Thus, as mentioned, doubts naturally arise. One of the main ones is the relationship and differences between judicial and extrajudicial auctions, which in terms of purpose do not influence anything. But, in legal terms , they are two very distinct situations. The final buyer will not be affected, but the one who "lost" their property will be.
In today's content, we'll explain to you, our reader, what an extrajudicial auction is and how this type of event can be beneficial for those looking to buy something at a lower price. So, if you want to know more about the subject, follow us to the end of the article for more details. Let's go, read along!
What is an extrajudicial auction?
So, what exactly is an extrajudicial auction? In general terms, an extrajudicial auction, as the name suggests, is one that does not go through the judiciary; that is, there is no need to initiate a legal process. Therefore, these auctions are usually conducted by real estate and vehicle finance companies, which, as a way to be reimbursed for default, auction off the asset.
However, for an extrajudicial auction to take place, there must be a financing contract in force between the parties, that is, the contractor and the contractor, specifying that non-payment of a specific number of installments, or a specific period of delay, leads to the asset being seized.
Without this specific clause, therefore, there is no way for an extrajudicial auction to take place; on the contrary, the contractor ends up having to go to court to obtain a search and seizure warrant for the same, whether it is a vehicle (car, motorcycle, truck, bus, etc.) or property (house, apartment, land, etc.).
When does an extrajudicial become judicial?
However, it's important to remember that within the law, virtually any type of process is possible (seriously, anything is possible; it doesn't mean it will succeed, but the process will be accepted). By this, we mean that even an extrajudicial auction, supported by an express clause in the contract, can become judicial.
And why? Well, many people report errors in their financing billing. This happens because they don't read the fine print of their financing agreements, and thus end up having to pay slightly higher installments at some point, even though they weren't fully aware of the details.
So, when they are notified to pay what is outstanding, they refuse, the finance company files a request for an extrajudicial auction, and the financing contractor refuses, taking legal action against the contractor: nothing could be more wrong, what was a simple process now becomes even more complicated.
Of course, the contractor is often correct, but most of the time, it's because they didn't read the contract. Thus, the financial company wins the lawsuit, the person incurs legal fees, etc., and ends up with a bad credit rating, as they lose a lawsuit and the auction also becomes a judicial process.
How to participate in an extrajudicial auction?
Well, we already know what an extrajudicial auction is , but how do we participate? To do this, it's necessary to find information about financial institutions that conduct this type of event. Companies like Santander, Bradesco, and even Caixa (Caixa's real estate auctions are among the best known) are some examples.
Once you've found information about these auctions, simply register online (the vast majority are virtual), attend the video conference on the date and time specified, place your bids, and win your item, whether it's movable or immovable. This was our guide explaining what an extrajudicial auction is. We hope this helps answer your questions. See you next time!
