When the auction is held in a judicial collection process, the person in charge of presiding over it will ask who is interested in participating in the auction, so that they can be duly identified.

Once this point has been verified, the edict will be read and the basis for the auction will be announced. Subsequently, anyone interested in participating, except for the preferred grade creditor, must deposit 50% of the base amount in the case of the first auction. The purpose of the deposit is to ensure the seriousness of the bidders. On some occasions, depending on the Creditor (for example, Mutuals) the amount that must be carried is 100% of the totality with which the property is intended to be awarded. This deposit can be made by:

1. Cash
2. Bank integer at the order of the Court
3. Certified check payable to the respective Court
4. Any duly authorized technological mechanism

The following persons may not participate in the auction:

1. The persons indicated in article 1068 of the Civil Code
2. The debtor and / or guarantor
3. The attorney in his/her own favor
4. The special legal attorney in his/her favor

Generally, the bids (which are formulated orally) are irrevocable, with which it will have all its effects as long as there is no other that exceeds it. There is no standard that establishes how much one offer has to exceed the other, so it can be perfectly superior for one costarican colon.

The auction will be terminated as soon as there is no bid that exceeds the last one, so it will be awarded to the highest bidder.
Whoever is awarded, must indicate some authorized means to receive notifications. It will also be able to give impetus to the process (for example: request that the auction be approved, defend any opposition, appeals, etc.)

The auction having been properly held, and the amount offered by the successful bidder being deposited, the auction will be approved by means of a resolution that will also contain:

a) Order of cancellation of liens and annotations
b) Cancellation of lower grade collateral
c) Order for the protocolization of parts
d) Order of taking possession

The successful bidder must go before a Notary Public for the purposes of carrying out the protocolization of pieces, which is a public deed by means of which the title is registered in his/her name under the conditions indicated in the approval resolution.

At ERP Lawyers we have a team of experts in judicial collection processes. In case you have questions or queries on the auction of the judicial collection process, we invite you to contact us at info@erplawyers.com where we will gladly assist you.