Article „Is it worth buying real estate through bidding if it is accompanied by owners like Nancy Himma?“ by Aleksandr Tsemin
Online version of the daily Päevaleht has published the article „Is it worth buying real estate through bidding if it is accompanied by owners like Nancy Himma?“ by attorney Aleksandr Tsemin. The author explains the most important points to be considered upon purchasing real estate through public bidding. Upon concluding the usual purchase and sales transaction, the seller must inform the purchaser about all the disadvantages of the real estate. However, this principle does not apply to the enforcement proceeding mainly due to the reason that the seller is actually lacking the will to sell the property and the bailiff is also lacking sufficient information about the sold property. Thus, regarding biddings a high risk of purchasing real estate with disadvantages exists, the improvement of which requires significant amount of financial means from the purchaser.
Additionally it is necessary to consider that the hazard of accidental perish or damage of the real estate transfers to the highest bidder at the moment of confirming the highest bid. At the same time the right of ownership of the property is established only upon making a respective entry into the Land Register, in other words about one month as from submitting the application to the register. Therefore the purchaser can claim the transfer of possession from the debtor only after the specific entry has been made into the Land Register but at the same time the purchaser is responsible for covering all the expenses and accidental damage of the property already before the rights of ownership occur.
The article is also providing an overview of the problems related to the purchased real estate that proceed from previously concluded rental contracts and debts of the previous owner.
As a conclusion, the author is advising to thoroughly consider the risks that are involved in the enforcement proceeding of seemingly “beneficial” purchase of property.