THE JUDICIAL SALE OF REAL ESTATE UNDER DEFERRED PAYMENT

Abstract

In the context of enforcement proceedings, Articles 650.3 and 670.3 of the Spanish Code of Civil Procedure (Ley de Enjuiciamiento Civil) allow a special possibility regarding the sale of the seized assets in judicial auction: the buyer can offer a reasonable price, but postponing the payment of part of it. It can be useful in order to reach a successful auction, but legal provisions are incomplete and can lead to misinterpretations and difficulties, which should be avoided. The most relevant one arises when the court has to consider if the amount due to the creditor has been diminished in the whole sum offered by the auction buyer (including postponed rates) or only partially (what the buyer has really paid so far), since this decision conditions the subsequent development of enforcement procedures. The focus will be put on real estate, where this possibility might probably find a more frequent use.