Buying real estate at SETAM auction. What are the features of the service? How does bidding take place?
In previous articles, we have already talked about the risks and benefits of buying real estate from developers, ie assessing the primary market. Today we will talk about another source of buying and selling real estate (apartment, house, land, etc.), which has its own characteristics and many nuances. Thus, such a source is the purchase of property from a public auction (bidding) SETAM (System of electronic bidding for seized property). This can be viewed on the web portal at https://setam.net.ua/neruhomist
This site is a platform on which the property is sold, in particular in the framework of enforcement of court decisions on the basis of executive documents. That is, we are talking about the forced sale of the debtor’s property.
What are the features of the site?
The sale of the seized property is carried out at a public auction, in which anyone can take part, provided that the requirements are met and certain rules are followed. Registered participants choose a specific lot and trade for it. On the site, all lots are grouped under certain headings, one of which is “Real Estate”. In turn, in “Real Estate” there are subheadings:
✅ – Commercial real estate;
✅ – Industrial real estate;
✅ – Non-residential premises;
✅ – Unfinished;
✅ – Residential real estate;
✅ – Buildings;
✅ – Garages / parking lots;
✅ – Land plots;
✅ – Other.
Before deciding whether to participate in the auction, you can evaluate a specific object according to your own criteria. To do this, you can find sections about the lot: the characteristics of the object, information about the lot, its photo and, if available, an attachment.
Please note that in order to participate in the auction, you must pay a guarantee fee of 10% of the starting price. If you do not win the tender – the guarantee fee is refundable. Such a mechanism exists to prevent abuse and concerted action between participants.
How did the bidding take place?
Each lot will contain the starting price, as well as the auction step. The auction takes place by raising the price of each of the participants in the round. If you do not want to raise the price, you can leave your bid unchanged, but it is impossible to reduce the bid.
Participants see all the bids received, but do not see information about each participant. After each new price offer received 5 minutes before the end of the bidding period, electronic bidding is automatically continued for another 10 minutes from the submission of the last price offer.
The winner is the participant who offered the highest price.
After the end of the auction, the Electronic Bidding Protocol is formed: one – with the personal data of the winner of the bidding – is displayed only for the winner and SETAM employees, in another protocol, open to all users, the data is hidden.
The biggest disadvantage of such auctions is that the former owner of the property in any way refuses to recognize the loss of his ownership of the sold property. Therefore, we recommend that you consult a lawyer when buying real estate at auction.
If you still have questions, please contact the law firm “Prikhodko and Partners” – we will provide you with qualified legal assistance.
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