Procedure for the auction of Investment property in Costa Rica

May 27, 2021 - PRLog -- When a debtor fails to meet its financial/property obligations to a creditor, the creditor may resort to the auction of its assets and immovable property, rights or shares seized, whether movable or immovable.

The procedure for the auctioning of immovable property consists basically of the following three steps:

1)      ASSESSMENT: It is the monetary value designated by experts in the judgement of the property to be auctioned. The executed person has the right to have the valuation updated and not to mediate between it and the currency for more than six months.

2)      BUSINESS OR REMATE: Once the valuation has been done, the auction must be announced, "by means of edicts."

3)      DELIVERY OF THE PRIZE, GIVING OF WRITING and PAYMENT TO THE EXECUTOR: The legal position is that which covers two thirds of the value indicated as the basis for the auction. At least enough cash to cover the tax interest must be offered

4)      If the position is greater than the basis fixed for the auction or award of the goods to the federal treasury, after the credit has been covered, the surplus will be handed over to the debtor, unless there is an order from a competent authority (again, the action of the debtor is not defined) or the debtor agrees in writing that all or part of the balance be handed over to a third party.

The exact authority may dispose of the seized assets in instalments when there is no way to purchase them in cash and provided that the buyer guarantees the balance of the debt plus the corresponding interest, causing interest equal to the surcharges payable in the event of payment of tax credits on time, in which case the debtor is released from the obligation to pay.

At ERP Lawyers, we have a team of experts in judicial collection proceedings. Contact us (https://erplawyers.com/blog/participacion-y-adjudicacion-...).