Auctioneers often only see the low price and neglect the risks involved in such a property purchase. A seemingly favorable purchase can turn into a multi-year court battle to vacate the property and obtain possession. It has happened that after winning a public auction, the buyer received a letter from the court enclosing a lease agreement concluded years earlier by the owner of the property with a third party for an indefinite period, free of charge, with a high penalty for termination of the lease. For advice on what to do in such cases and how to properly prepare for a public auction, please contact Jadek & Pensa d.o.o.
The pitfalls of buying property at public auctions are presented in detail in Pravna praksa no. 37/2021, pp. 6-9 at:
