How to take part in the E-auction?

What property is sold in an auction? Pursuant to Article 694(1) of the Code of Civil Procedure of the Republic of Lithuania the real property of a debtor and other registered property, the value of which exceeds 2,030 euro, as well as other movable property, the value of a unit of which exceeds 30,000 euro, shall be realised by auction.

How to find out about planned auctions? Information on all property sold in an auction is published on the special online portal www.evarzytynes.lt . Each announcement specifies the time of an auction, property category, location of property, starting sale price and auction participant fee. It also provides a brief description of property, including photographs and other additional information.

How is the price of auctioned property determined? The starting price of a first-price auction comprises 80 per cent of the market price of property, and 60 per cent at a second-price auction.

What is the amount of the auction participant fee? The auction participant fee comprises 10 per cent of the starting sale price of auctioned property. If a person purchases property at an auction, the participant fee will be included in the final purchase price. The auction participant fee will be refunded to persons who did not purchase any property within the period of three days.

What is the duration of an auction? The duration of an auction is at least 30 days. During this period the real property and other property registered in the procedure established by law, as well as other movable property, the value of a unit of which exceeds 30,000 euro, are auctioned. When an auction involves sale of movable property the value of which is less than 30,000 euro, the duration of an auction is at least 20 days.

The auction continues until the bids are being raised. In accordance with Article 713 of the Code of Civil Procedure, in all cases when at least one bid is placed prior to the end of auction, the bidding period shall be extended by another 5 minutes, during which the participants are allowed to bid on the property sold. The start of auction shall be considered to be the moment of its announcement on the online portal www.evarzytynes.lt.

Who can participate in an auction? The Lithuanian and foreign citizens and legal entities with electronic banking systems available in Lithuania or who possess an electronic signature issued in Lithuania. If necessary, an entity may participate in an auction indirectly, through the assistance of an authorised representative.

The judicial officer organising an auction shall not be allowed to partake in it, as well as other judicial officers and office staff working in the same judicial officers’ office, and close relatives and spouses (partners) of these persons.

When and how to register for an auction? The procedure of registration of participants and conducting an auction is described in the electronic link provided in the announcement. By logging in to the e-auction portal by means of e-baking or electronic signature and following this link, the participants can familiarise and confirm electronically that they have familiarised with the procedure of conducting an auction described in detail in Annex No 25 to the Instruction on Enforcement of Decisions, procedure for appealing the actions of a judicial officer and possible consequences of auctioning of property. Here the participants can also enter their contact details (name and surname, personal ID number or code of legal entity, e-mail address, etc.). The validity of the required documents will be verified via an automatic link to the Residents’ Register. The system will then generate a payment order for payment of the auction participant fee. The registration will be completed, once the payment has been made.

Please note that online processing allows registration and bidding in auctions that have already started. Moreover, one can participate in several auctions simultaneously.

Is participation in an auction public? The auctions are public; however the electronic processes ensure confidentiality of the participants. The bidders’ identity is known to neither the potential buyers nor the judicial officer organising an auction. The registered participants are only able to see their own bids and the highest bid in the electronic auctioning system. The judicial officer will receive information about the highest bidder only when the auction ends.

How is the price of auctioned property raised? For the convenience of e-bidders, the automatic bidding function is available as of 1 August 2014. At the end of an auction, the system will automatically select the highest bidder.

When raising a bid in a non-automatic manner, the participants’ bid cannot be lower than the starting sale price of property. Other auction participants can place only higher bids, however each increase of the price must comprise at least 0.5 per cent of the starting sale price of property if the starting sale price is lower than 15,000 euro, at least 0.3 per cent if the starting sale price is between 15,000 euro and 30,000 euro, and at least 0.1 per cent if the starting sale price exceeds 30,000 euro. The highest current bid placed on the property sold is displayed during the auctioning process.

During automatic bidding, a participant must specify a starting bid, which cannot be lower than the starting sale price of property, the maximum bid and the automatic bidding interval, which cannot be lower than the interval applicable for non-automatic bidding.

How does the winning bidder become an owner of property? The judicial officer organising an auction will receive an electronic message about the winning bidder within one business day following the end of an auction. The winning bidder will receive a message regarding an auction won in a form established in Annex No 26 to the Instruction on Enforcement of Decisions. The judicial officer will draw up a property sale certificate within three business days following the payment of the full price of property. In accordance with Article 715 of the Code of Civil Procedure, once the buyer signs this certificate, the right of ownership of the auctioned property will be transferred to the buyer.

Is buying expensive property online risky? The purchasing risks and the form of auctioning have nothing in common. The manner of conducting an auction has no influence on the condition of property sold. Despite the fact that an auction is conducted online, in accordance with Article 708 of the Code of Civil Procedure, all persons wishing to inspect auctioned property can do so prior to the start of an auction in the procedure established by a judicial officer. When planning to buy property from an auction, in order to ensure sound investment, it is recommended to inspect property on-site and consult the respective specialists.