On buying property under execution
(First of two parts)
“Buy land,” said Will Rogers, an American actor. “They ain’t making any more of that stuff.”
Besides substantially enhancing one’s net worth, buying properties may be sought to satisfy the writ of execution issued by the court to satisfy its judgment. If you would intend to participate in the sale of a property under execution, keep these in mind.
All sales of property under execution are made at public auction, to the highest bidder, to start at the same time fixed in the notice. As I have discussed in an earlier article, this notice is that which must be posted for 20 days in three public places in the municipality or city where the sale will take place, particularly describing the property and place of sale.
At any time before such sale, the judgment obligor—that is, the person against whom the judgment is sought to be enforced, may prevent it by paying the amount required by the execution and related costs.
When the sale consists of several known real properties, they must be sold separately until the judgment is completely satisfied. Moreover, a third person claiming a portion of these properties may require it to be sold separately. Meanwhile, if present at the sale, and whenever applicable, the judgment obligor may direct the order in which real and personal properties can be sold.
The sheriff or other officer conducting the execution sale and his deputies can neither participate in the execution sale nor be directly or indirectly interested in any purchase thereon.
If a purchaser refused to pay the amount bid by him, the officer may resell the property to the highest bidder, and shall not be responsible for any consequent loss. But, the court may order the refusing purchaser to pay the amount of such loss, with costs, and may cite him in contempt if he would disobey this order. The payment of this amount shall be for the benefit of the person entitled to the proceeds of the execution, who includes, among others, judgment obligee. Nevertheless, if the execution was fully satisfied, the judgment obligor shall be entitled to these proceeds.
In any case, the officer may reject any subsequent bid of the purchaser who refused to pay.
When the purchaser is the judgment obligee, and no third-party claim has been filed, he does not need to pay the amount of the bid if it would not exceed the amount of the judgment. Otherwise, the judgment obligee shall only pay the excess thereof.
By written consent of the judgment obligor and obligee, or their duly authorized representatives, the officer may adjourn the sale to any date and time agreed upon by them. Absent this agreement, he may adjourn it from day to day, if necessary to do so for lack of time to complete the sale on the day fixed in the notice or the day to which it was adjourned.
Upon the sale of land under execution, the officer must give to the purchaser a certificate of sale, stating: (a) a particular description of the land sold; (b) the price paid for each distinct lot or parcel; (c) the whole price paid by him; (d) that the right of redemption expires one year from the date of registration of this certificate before the registry of deeds where the land is situated; and if any, (e) the existence of a third party’s claim on the land sold.
The right of redemption of the sold property may either be exercised by: (a) the judgment obligor or his successor-in-interest in the whole or any part thereof; or (b) a redemptioner, or a junior encumbrancer whose claim is by virtue of an attachment, judgment or mortgage on the property sold, or on some part thereof.
At any time before the one year from the registration of the certificate of sale, the judgment obligor or redemptioner may exercise this right by paying the purchaser the amount of his purchase, with monthly interest up to the time of redemption, together with the amount of any assessments or taxes which the latter paid after the purchase, and accruing interest, if any. If the purchaser was also a creditor having a prior lien to that of the redemptioner, other than the judgment under which such purchase was made, then the amount of such other lien, with interest, shall also be paid.
