Frequently Asked Questions About Auctions
What is an auction?
The public auction is the method by which a bank / financial institution, can sell the properties pursued in foreclosure proceedings. The asset in question will be sold to the party that places the highest bid in a public auction.
How is the reserve price/minimum acceptable price calculated?
The reserve price/minimum acceptable price is calculated in accordance with the provisions of the foreclosure.
Where are the auctions conducted?
Auctions are conducted in a specified venue in each district.
- Nicosia: 28 Archbishop Makarios III Avenue, 2324 Kato Lakatamia
- Limassol: 22 Parthenonos Street, 4190 Ypsonas
- Larnaca: 10 Zakynthou Street, 6018 Larnaca
- Paphos: Shop No.1 , 5 Charalambos Kyrillou Street, 8250 Emba
- Paralimni: 42 Agiou Orous Street, 5281 Paralimni
Which legal documentation do I need to have with me in order to bid at the auction?
- Identification data of the person (I.D./passport)
If the individual is acting on behalf of another individual then identification data of the beneficiary will also be needed as well as a valid power of attorney
Legal entities (as applicable):
- Copy of company registration certificates (original certificates may be requested in certain situations);
- Board minutes authorizing the Director to bid in the auction of behalf of the company
- Identification date of authorized Director (I.D./passport).
The above should be used as an indication of what may be require. Each bidder should confirm with the appointed auctioneer on what legal documentation apply to his/her individual circumstances.
Can anyone bid at the auction?
In accordance with the foreclosure legislation certain parties are prohibited from bidding in an auction.
The mortgaged property may not be sold to:
- a person who holds more than two per cent (2%) of the share capital of the authorized credit institution or a licensed financial institution or is connected with this person or their representative or their spouse or their parent or their descendants up to third degree, or any officer, director, employee of the mortgagee
- any officer, director, agent or relative up to the fourth degree of auctioneer
- the appraisers who prepared the property valuation report and their relatives up to the fourth degree relation.
On conclusion of the auction, the successful bidder will sign a declaration confirming that he/she/the company is not a prohibited party for the purposes of the auction proceedings.
How does the auction take place?
The auctioneer will read the press release and other relevant information and invite all present parties to bid for the auctioned asset.
Alongside other relevant information, the auctioneer informs parties of the following key information:
- The property will not be transferred if the reserve price is not covered;
- The property is auctioned without further warranties regarding the existence, type or size of the property or the right that the mortgagor/judgement debtor has.
- In cases where VAT may arise, any awarded sale price will not include VAT. This will be borne by the successful bidder, over and above the awarded price.
What happens on conclusion of the auction?
The highest bidder must submit to the auctioneer the following:
- At least 20% of the sales price (via personal cheque/ banker’s draft)
- Transfer fees that may arise from the auction transactions ((per owner, 8% on sale price that exceeds the amount of €350.000)
- €10 for the transfer application to be submitted at the Land Registry Office
- €5 for the issuance of each new title deed
- Identification/documentation as specified above and confirmed by the auctioneer
- Declaration that he/she/the company is not a prohibited party as specified above.
The successful bidder must settle any outstanding balance of the sales price within 20 days from the auction date. If no such settlement is effected, he/she/the company will lose the deposit amount and will be liable for any loss that may occur in a subsequent sale. In cases where VAT arose, the VAT amount will also need to be settled by the agreed upon date; indicatively within a month of the auction date.
Where can I find further information on the auction process and/or asset to be auctioned?
For further information, please contact the auctioneer (contact details specified in particular press release) or APS at 22-690470.
All the properties presented in APS CY website are owned by Hellenic Bank Public Company Limited and/or by direct or indirect wholly owned subsidiary companies of Hellenic Bank Public Company Limited (“Bank”). We are authorized by the Bank to manage the properties of the Bank (“Properties”). APS CY does not own any of the properties displayed on the Site.