Changes in real estate enforcement. The norm is to be electronic auction

During the enforcement of real estate, electronic auction will be a priority, they provide for the assumptions of a project prepared by the Ministry of Justice, which were included in the list of government works. Currently, the principle is to conduct traditional public auction.

The draft amendment to the Code of Civil Procedure regarding this issue is another of a number of deregulation changes reported by individual ministries. According to the list of legislative and program works of the government, posted on the website of the Prime Minister, the change would be adopted by the Council of Ministers in the second quarter of this year.

The provisions regarding the possibility of selling real estate through a bailiff's electronic auction were introduced to the CCP in September 2021.

At that time, however – according to the added entry in the Code of Civil Procedure – it was reserved that “the sale of real estate by electronic auction is carried out at the request of the creditor.” “An application for electronic auction may also be submitted if the application for a re -bidding or second auction is submitted” – added in the provision.

Therefore – as the Ministry of Justice points out – according to the current wording of the CPC, the electronic auction can only be carried out at the creditor's request, and if the creditor does not submit such a request, a public auction is carried out.

“The proposed amendment to the Code of Civil Procedure aims to reverse the current principle and granting the priority of electronic auction” – the project assumptions were noted.

Therefore, after the change made, “public auction would only follow at the request of the creditor or at least one creditor, in the event that the auction from the property takes place to satisfy more than one creditor.”

“The progressive electronization of judicial enforcement proceedings and the effectiveness of judicial enforcement from real estate speaks for such a change. The experience collected in this respect indicate greater effectiveness of electronic auctions” – argues MS in the justification of the change announced in the list of government works.

Deputy Minister Arkadiusz Myrcha deals with the project from the Ministry of Justice.

The planned amendment is another development of the current electronic bidding system. Electronic auctions of movable property, e.g. cars, were introduced at the earliest. The provisions giving such an opportunity came into force in 2017, later work on the creation and improvement of the IT system continued. (PAP)

MJA/ MMU/