What are the risks of the auction house?

The possible risks of the auction house are: first, the risk of loan, second, the risk of difficulty in moving in, third, the long lease period of the auction house, and fourth, the risk of related expenses.

First, the four risks of buying an auction house

1, loan risk

In the court-led auction, everyone is required to make a one-time payment within a certain period of time. When the bank negotiates with the buyer, many times the bank will ask for a one-time payment, and only for customers with better qualifications can it provide support.

2. The risk of difficult occupancy

Example 1: A citizen of Shanghai successfully won a judicial auction house, but the original owner refused to move for more than three years, mainly because the actual user of the house was replaced by the sister of the original owner and played tricks with the court. Finally, the case was finally settled under the enforcement of the court.

3. The auction house has a very long lease.

Some owners will suddenly sign a one-time lease of 10 or 20 years with others after the house is sealed up, which makes it impossible for bidders to move in.

4. Risks of related expenses

In the sale of ordinary houses, the relevant taxes and fees are paid by the seller, while the judicial auction is different. According to the rules of judicial auction of a treasure, all transfer taxes (including taxes payable by the seller) shall be borne by the buyer. In addition, the overdue water, electricity, property fees and late fees of the house shall be settled by the buyer himself.

Second, buyers should pay attention to the following matters before the auction.

1. Pay attention to whether the court entrusting the auction directly seals up the house first or waits for sealing up, and whether it is sealed up by other institutions.

2. Pay attention to whether there is any problem with the property right and the nature of the property right of the auctioned house, whether there is unclear property right, no property right, small property right and unclear property right.

3. The owners of auction houses are often involved in debt problems, and their houses may be mortgaged many times. If you have a mortgage, you should know whether you can make an understanding mortgage. If the mortgage can't be lifted, it may face corresponding risk of debt in the future, because the subsequent expenses of the auction house are all borne by the buyer. It is worth noting that, because state agencies cannot inquire about private loans, people who buy such houses may be repossessed by other creditors after moving in.

4. Pay attention to whether there are actual residents and the problem of moving out of the household registration. If you buy a long-term rental auction house, although the purchaser has completed the transfer of the house, it is actually impossible to move in because the lessee does not move out or the original property owner refuses to move out. Under normal circumstances, the enforcement court will not be forced to vacate, and it can only be handled by the buyers through a separate civil case.

5. The original owner of the auction house may also have unpaid utilities, property fees and other expenses. Some properties may face a large amount of arrears due to long-term uninhabited, which will be borne and solved by the bidders themselves. This situation will generally be explained in the introduction of the auction announcement. For example, a listing information shows that "the property water, electricity and gas arrears are unknown and need to be verified by the buyer".

Third, real estate auction.

Real estate auction refers to the act that auction companies are entrusted by banks, judicial organs and other units or social individuals to announce real estate sales information to the public and transfer real estate ownership through bidders' bidding.