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Voluntary auction
A voluntary auction is a public sale of property under the law. The auction is organised by the auctioneer; the notary's role is to impartially certify its course by a notarial deed and to keep a record of it in the central register of auctions.
What this service means
What the notary does at an auction and what it does not do
A voluntary auction is a public sale of property under the Act on Voluntary Auctions (zákon o dobrovoľných dražbách) — it is often used to satisfy a pledge (lien) (for example, where a debtor has failed to repay a secured debt). The roles are clearly separated:
The notary is not the auctioneer. The auction is organised and conducted by the auctioneer (through a licitator); the auctioneer sets the lowest bid and decides on the course of the auction. The notary neither organises nor conducts the auction — the notary attends it as an impartial public officer who certifies its course and does not intervene in the proceedings.
In such a matter the notary usually:
- certifies the course of the auction by a notarial deed (the law requires this for certain subjects of an auction — for example, real property),
- issues to the successful bidder certified copies of the notarial deed on the conduct of the auction (these serve, for example, as the basis for the registration of ownership),
- registers the data on the auction in the central register of auctions at the request of an authorised person and issues confirmations from that register.
The notary does not guarantee the outcome of the auction (neither the sale nor the price achieved).
Procedure
How it usually proceeds
Preparation of the auction. The petitioner or the auctioneer arranges the auction in accordance with the law.
Registration in the register of auctions at the request of an authorised person (subject, auctioneer, petitioner, place and time, collection of deeds).
Certification of the course. The notary is present and certifies the course of the auction; the notary draws up a notarial deed on the conduct of the auction.
Signatures and copies. The deed is signed by the auctioneer, the licitator, any objecting person and, where the property is knocked down, the successful bidder; the notary issues certified copies to the successful bidder.
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