You have been awarded the bid at the judicial auction and are already mentally starting to move. Then a notice arrives about an overbid. It is now important to classify the judicial procedure quickly and not to confuse a possible increase with an ordinary non-binding price negotiation. This article deals with the situation of the purchaser who has already been notified.
Recognise the special statutory procedure
§195 EO provides for an overbid under its conditions if the highest bid does not reach three quarters of the valuation of the property and its fittings. The provision requires, for an overbid to be taken into account, among other things a specific increase over the previous highest bid and further prerequisites. [UEBERBOT]
Whether a specific overbid is permissible and effective must be examined in the procedure. This article does not create an overbid and does not assess any award as already finally secured. Do not rely on a general reminder of auction rules when you have been judicially notified.
Secure the notification and its receipt unchanged
Keep the complete document including delivery and receipt details and obtain case-specific legal advice immediately. §197 governs the notification of the highest secured overbid and the possibility for the purchaser to react by increasing the highest bid in the procedure provided for. For this the provision contains a short time limit and special requirements for the declaration. [ENTKRAEFTUNG]
Do not calculate the deadline relevant to you from an incidental phone call. Have delivery, procedural status and required action clarified concretely. A private message to the sales page is not here a confirmed effective judicial response.
The increased bid requires a new economic decision
Our editorial recommendation: Compare the additional amount actually demanded with your original limit and your confirmed financing. The joy over the first award must not lead to every subsequent overbid being accepted without scrutiny.
Agree any changed funding requirement with the bank in good time. An earlier commitment for a lower requirement does not automatically confirm the increased amount. Other acquisition and property-related expenses also remain part of your personal decision; this article does not assign any blanket cost figures for these.
Hypothetical case: The previous limit was matched to the condition
A purchaser had deliberately set her limit so that funds remained available for identified works on the building. On receipt of the overbid notification she wants to increase spontaneously to avoid losing the already envisaged move-in. However, that would exactly consume the reserve planned so far.
Under time pressure she has the legal possibility to react and the confirmed financing clarified together. The example does not decide whether she should increase. It shows that the second declaration can concern an economically changed transaction and therefore requires an independent decision.
Do not make a trial declaration
§197 contains an irrevocability rule for the declaration referred to there after receipt or closure of the record. §196 also governs the inadmissibility of withdrawing the overbid. [ENTKRAEFTUNG] [ANBRINGUNG] Do not therefore use these procedural steps as a non-binding test. What is required is an action clarified in good time and a genuinely supportable decision based on the current procedural status.