Properties: Should I Buy From Forced Auctions? How?

In this article I am summarizing the pros and cons of buying properties in Germany through an auction. I am talking about forced auctions held by the courts.

The How-To is here: http://bit.ly/bBpwgU

The pros of an auction:

• No commission is involved, unless you want a broker or consultancy to help you with the assessment of the information that you might want to gather before you go for the property.
• The court always provides for free you with a valuation that had been done by an independant architect. Normally you have to pay for this paper.
• In most cases the property will be handed over with a clean land register. Exceptions are very special cases that are mentioned in the documentation the court can provide you with.
• You are entitled to the income of the property as of the day of the auction. 
• Commercial leases can be cancelled within 4 weeks after the auction (not residential leases!!). 

The cons:

• Many times you might not be able to visit the property from inside since the owner or creditor does not offer this. They are not legally obliged to show you around.
• If the former owner resists the hand-over of the property, though he legally cannot do so, you might face a lot work for some time.
• Nobody assumes any liability for the property regarding damages etc.

If you need help, do not hesitate to contact FIS: hello@fis24.net