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What is an Extrajudicial Auction?? What is the difference between a judicial auction and an auction that is extrajudicial? How do I know if my property, vehicle or any other personal product was taken to this type of auction? Is a request for the seizure of a vehicle or property made when the product is not legally sued?
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When it comes to auctions, many questions can arise. In fact, it's a pretty common thing to happen. Since these events happen from time to time and not always those who participate in one will participate in another. In this way, many people just want to make a purchase and will never participate in these events again.
So, as mentioned, doubts arise naturally. One of the main ones is the relationship and differences between judicial and extrajudicial auction, which in the finality does not influence anything. But in legal terms, are two very different situations. The final buyer will not be affected, but the one who “lost” his good will.
In today's content, we are going to explain to you, our reader, what is an extrajudicial auction 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 it, follow us to the end of the article for more details. Come on, read with us!
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What is an extrajudicial auction?
In the end, what is an extrajudicial auction? In general terms, an extrajudicial auction, as the name implies, is one that does not go through the courts, that is, there is no need to open the process itself. Thus, these are auctions generally carried out by real estate and vehicle finance companies, which, as a way of being reimbursed for the default, auction the asset.
However, for an extrajudicial auction to take place, there must be a current financing agreement between the parties, i.e. contractor and contractor, specifying that non-payment of a certain number of installments, or a specific period of delay, leads to good for the attachment.
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, be it a vehicle (car, motorcycle, truck, bus, etc.) or real estate (house, apartment, land, etc.).
When does an extrajudicial become judicial?
But, it is important to remember that within the Law, practically every type of process is possible (seriously, everything is possible, does not mean that it will work, 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.
It's because? Well, many people point out errors in charges on their financing. This is because they don't read the fine print of their financing agreements, and therefore end up having to pay slightly higher installments at a given time, but they didn't know about it in detail.
Thus, when they are notified to pay what is outstanding, they refuse, the finance company files the request for an extrajudicial auction, and the financing contractor refuses, taking legal action against the contractor: nothing could be more wrong, which was a simple process now becomes even more complicated.
Of course, the contracting party is often correct, but most of the time it is the fact of not reading the contract. Thus, the financial company wins the lawsuit, the person has expenses with a lawyer, etc., and ends up with a dirty name, since he loses a lawsuit and the auction also becomes judicial.
How to participate in an extrajudicial auction?
Well, we already know what a auction extrajudicial, but how to participate? For this, it is necessary to find information about financial institutions that carry out this type of event. Companies like Santander, Bradesco and even Caixa (Caixa's real estate auction is one of the best known) are some examples.
After finding information about these auctions, you just need to register online (the vast majority are virtual), attend the videoconference at the date and time, place your bids and buy your property, be it furniture or real estate. This was our guide where we explained what an extrajudicial auction is. We hope we helped with your queries. To the next!
