If your property is subject to enforcement proceedings or you are trying to collect your debt, understanding the process is essential to ensure a smooth and legal transaction. In North Macedonia, the sale of real estate in enforcement is governed by strict legal regulations to protect both creditors and debtors. This article outlines each step, from submitting an enforcement request to handing over the property to the new owner.
Steps in the enforcement procedure for the sale of real estate
Filing an enforcement request
The enforcement process begins when the creditor submits a request for enforcement to a court-appointed bailiff. This request must be based on a legally valid enforcement document, such as a court ruling, notarial deed, or other enforceable title.
Issuance of an enforcement order
Once the enforcement request is approved, the bailiff issues an enforcement order on the real estate, which is then registered in the Agency for Real Estate register. This legal step ensures that the property cannot be sold or transferred until the enforcement procedure is completed.
Public auction process
The property is sold through a public auction organized by the bailiff. There are three separate auction rounds:
- First auction: The property is offered at its full estimated value.
- Second auction: If the property remains unsold, the creditor may propose a price reduction of up to one-third of the initial valuation.
- Third auction: If the property is still not sold, the creditor can again request a one-third price reduction from the latest auction price.
- If no buyers appear in the third auction, the enforcement process is temporarily halted, and the creditor must submit a new enforcement request to restart the process.
Winning the auction and payment of the purchase price
The highest bidder must pay the full purchase price within the legally prescribed deadline. If the buyer fails to meet the deadline, the deposit may be forfeited, and the sale process will restart.
Payment of transfer tax and ownership registration
Once the purchase price is paid:
- The buyer submits a tax declaration for property transfer tax.
- The tax must be paid before proceeding with ownership registration.
- After tax payment, the buyer files a request at the Real Estate Register to officially register as the new owner.
Settlement of debts and distribution of funds
From the sale proceeds, the funds are used to settle the creditor’s debt, which was the subject of enforcement. If there is any remaining balance after covering the debt and legal costs, the surplus funds are refunded to the debtor’s account.
Property handover and eviction
If the debtor or any other occupants refuse to vacate the property voluntarily, the bailiff may issue an order for forced eviction. Once the property is vacated, it is officially handed over to the new owner.
Closing arguments
The enforcement sale process is a structured legal procedure that requires careful attention to legal requirements. Whether you are a creditor, debtor, or buyer, understanding these steps can help ensure a smooth property transfer.
