The Legal Execution Department is responsible for holding Public Auctions that are listed in its Public Auction Announcements. The sale of properties can range from condos, empty land, factories and commercial buildings. The properties sold at auction are usually derived from bankruptcy, defaulted mortgages and seized property by the anti-money laundering office.
The following outlines the procedures and requirements to purchase a property at auction.
Secure bid with the Public Auction Announcement
See what’s listed. Buyers are responsible to inspect the property conditions before participating in an auction that is listed in the Public Auction Announcement. Buyers should check details of the property such as venue, location, and other pertinent matters at buyer’s discretion.
Get your paperwork ready. Buyers should review and check bidding conditions, sale agreement, and any applicable warnings from the public auction announcement. Two copies of documents needed to submit on the auction date.
Verify your identity. Original Thai ID card, a government official ID card, passports, or a state enterprise employee ID card with a certified true copy is accepted. If the buyer is a juristic person, a company affidavit certified by the Office of Business Registration is required, however, issuance of affidavit cannot exceed more than a month.
Power of Attorney If a proxy is appointed to participate in auction, a power of attorney with THB30 affixed duty stamp, a copy of the ID card of the principal, and the proxy must be presented. In case of a juristic person, a power of attorney, a company affidavit, a copy of an authorized representative of the juristic person and of the proxy, all certified true copy must be provided.
Appraisal Value of property. As an example, to participate in the immovable property or movable property that has an appraised value of 500,000 THB or more, the bidder must place a bid deposit either in cash or cashier cheque payable to these appropriate locations:
- Civil Case Enforcement Bangkok Office 1 – 6,
- The Provincial Legal Execution Office
- Branch of Provincial Legal Execution Office
- The Letter of Bank Guarantee without any condition
- Processing via the EDC (Electronic Data Capture) System.
Bid Deposits
| Appraisal Value (THB) | Bid Deposit (THB) |
| Not exceeding 100,000 of appraisal value | No less than 5% |
| More than 100,000 – 200,000 | 10,000 |
| More than 500,000 – 1,000,000 | 25,000 |
| More than 1,000,000 – 3,000,000 | 150,000 |
| More than 3,000,000- 5,000,000 | 250,000 |
| More than 5,000,000 – 10,000,000 | 500,000 |
| More than 10,000,000 – 20,000,000 | 1,000,000 |
| More than 20,000,000 – 50,000,000 | 2,500,000 |
| More than 50,000,000 – 100,000,000 | 5,000,000 |
| More than 100,000,000 – 200,000,000 | 10,000,000 |
| From 200,000,000 and above | Determined by the Director –General or his/her representative |
Buyer to Bidder Registration Process on the Auction Date
On the auction date, the bidder must complete the registration form to an officer; whether it is prescribed by the Legal Execution Department, the Letter of Bank Guarantee, or processed via the EDC (Electronic Data Capture) System. Once bidder is registered, buyer will automatically enter into agreement with the Legal Execution Department. Exceptions are applied for parties with interests in the property to be sold and for those that are exempted from making the bid deposit; nonetheless, it is required to identify him/herself to the executing officer to get a bidder’s sign in order to participate. Once these steps are complete all bidders will be given a sign and a seat in the assigned area.
The Auction Process
Before the bidding starts, the executing officer gives a brief explanation of the bidding process and conditions of bidding, then runs the bidding according to the order indicated in the announcement. The executing officer reads details of each case and the announcement of bidding. The officer will proceed by verifying any interested person, such as the judgment creditor and the judgment debtor, are present. The executing officer then declares the start price that is considered fair and reasonable for such bidding.
The Price Fixing Committee determines the starting price in the first auction. If such price is not available, the appraisal value set up by the property value appraisal officer will be used. If no such appraisal value is available, then the appraisal value set up by the executing officer will be used.
Should there be no bidder at the first auction, the starting price for the second auction is determined at 90% of the appraisal value indicated.
Should there be no bidder at the second auction, the starting price for the third auction is determined at 80% of the appraisal value indicated.
In the fourth auction and subsequent one, the starting price is determined at 70% of the appraisal value indicated.
The executing officer may announce how much the price of each property can be increased and once the price is increased it will be used until the bidding is completed. However, any bidder wishing to increase the price at the rate higher than the fixed rate shall be able to do so.
Bidding.
After the announcement of auction of the property is read, a bidder may raise a bidder’s sign proposing to buy at the starting price. In case of multiple bidder’s wishing to buy the same property, they may raise a bidder’s sign proposing an increase over the starting price the rate of increase stipulated by the executing officer or proposing any price higher than the said rate.
Bidding runs until the highest price is reached. The executing officer will then ask the interested persons observing the bidding whether or not they wish to object the price. If there is no objection, the executing officer makes the first announcement of the price for 2-3 times, the second announcement of the price for 2-3 times. If no other bids are offered, the executing officer will make the third announcement of the last highest price indicated and knocks the hammer declaring the highest bidder as the successful bidder. This adjourns the auction for the property.
Prospective landowners can be assured they will no longer be responsible for the outstanding bills of previous owner. Both Thai and Foreigners can participate in the auction process. Real estate auction offers an exciting way for bidder to own new property and investments with the added bonus of competitive prices.
Source:
The legal execution department pdf manual for buyers
http://www.led.go.th/en/history-en.asp
http://www.led.go.th/en/doc/8-CHART-OF-PROCESS-OF-LEGAL-EXECUTION.pdf[/vc_column_text][/vc_column][/vc_row]
