Tax & Legal Highlights for Real Estate – April 2021
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1. Amendments to the Code of Civil Procedure regarding e-auction of real estates
On April 14, 15 and 20, the 28th session of the Sejm was held, during which the deputies passed an amendment the Code of Civil Procedure that allows for the possibility of bailiff’s auction of real estate online.
According to the amended regulations, the auction of real estate via the Internet takes place at the request of the creditor. If several creditors are executing against the property, an application by one of them is sufficient. The sale of real estate within the online auction is to be conducted through an ICT system, and the condition for participation in the tender is the creation of an individual account in this system. The announcement of the sale of real estate through the electronic auction is to be published on the website of the National Council of Bailiffs (Krajowa Rada Komornicza) at least two weeks before the date of the auction. The e-auction is supposed to last a week and the bailiff sets the auction in such a way that both, its start and end, fall between 9 am and 2 pm on business days.
Anna Dałkowska, former Undersecretary of State at the Ministry of Justice, is responsible for drafting the amendment in question to the Code of Civil Procedure and presents the following advantages of the project: sale of real estates via online auctions is supposed to reduce the costs of enforcement proceedings, speed them up and provide higher security to their participants. The e-auction is intended to prevent bid rigging and increase the transparency of the auction.
The proposed amendment is certainly an activity with the spirit of the times and in line with the progressive digitalization of social life. The ability to participate in the auction without leaving home will also make it easier for people from different parts of the country to participate in tenders. This is especially important in times of limited travel opportunities due to the ongoing COVID-19 pandemic.
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