Expiration of the successful bidder due to non-compliance: Commentary on Ordinance No. 15985 of 2024

The issue of non-compliance in the context of forced real estate sales is of fundamental importance and deserves special attention. Ordinance No. 15985 of 07/06/2024, issued by the Court of Cassation, provides important clarification regarding the consequences for the successful bidder who fails to meet the payment deadline. This ruling not only reiterates the automatic effects related to non-compliance but also establishes that there is no need to provide specific warnings to bidders regarding such consequences.

The legal context

According to Article 587, paragraph 2, of the Code of Civil Procedure (c.p.c.), in the event of the successful bidder's expiration due to non-payment of the price, a decree is issued ordering the payment of the difference between the offered price and the minimum selling price. This principle is confirmed by Article 177 of the implementing provisions of the c.p.c. The Court clarified that these rules are of mandatory application, which means that the consequences of non-compliance cannot be avoided by any warnings provided in the sale notice.

The consequences of non-compliance

OF THE SUCCESSFUL BIDDER Expiration due to non-payment of the price - Consequences - Decree pursuant to Articles 587, paragraph 2, c.p.c. and 177 implementing provisions c.p.c. - Automatic effect - Existence - Warning to bidders about the consequences of non-compliance in the sale notice - Necessity - Exclusion - Basis. In terms of real estate expropriation, the expiration of the successful bidder due to non-payment of the price within the established deadline results, as an automatic and indispensable effect, in the issuance of the decree, pursuant to Articles 587, paragraph 2, c.p.c. and 177 implementing provisions c.p.c., condemning the non-compliant successful bidder to pay the difference between the price offered by him and the lower price for which the sale occurred (increased by the confiscated deposit), without the need for the sale notice to contain a warning to bidders about the consequences of non-compliance, as this is an effect provided for by legal provisions, of mandatory application, which do not affect the formation of consent of the interested parties to the purchase, nor can they create a legitimate reliance of these parties on the non-application of the rules.

This ruling by the Court of Cassation emphasizes that the expiration of the successful bidder is automatic, meaning that no further action is required from the judge or the bailiff to activate the condemnation decree. This simplifies forced sale procedures and protects the rights of creditors, ensuring that defaulters cannot escape their financial responsibilities.

Conclusions

In summary, Ordinance No. 15985 of 2024 represents an important confirmation of the rigidity of the rules regarding real estate expropriation. It clarifies that the non-compliance of the successful bidder leads to immediate and automatic consequences, without the need for specific warnings. This approach promotes legal certainty and the protection of creditor interests, essential elements in the context of forced executions. It is crucial that legal professionals and those interested in forced sales are aware of such regulations to avoid unpleasant surprises.

Bianucci Law Firm