How does the Federal Property Management Agency work - auctions of seized property

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The property of debtors, by law, can be alienated in favor of creditors. Most often, it ends up at auctions of seized property, which are held through the Federal Property Management Agency. This is a special federal body.

Sales of seized property are within its scope of activity and are regulated by 229 Federal Laws. The proceeds from the sale go to cover the debt of the former owner of the items and to the state.

The confiscation and seizure of movable and immovable objects is carried out by the bailiff service on the basis of enforcement proceedings. The latter are brought against debtors by court decision. After alienation, the items go to the Federal Property Management Agency, where they are sold.

There are three main questions regarding the state’s sale of things confiscated from citizens: where are the objects sent after alienation from debtors, how to buy seized property through the Federal Property Management Agency and what it is.

Rosimushchestvo is the short name of the Federal Agency for State Property Management. Each subject of the Russian Federation has a territorial branch of the agency. Let's look at the principles by which the auctions are held, who can participate in them, and what the conditions are.

Conditions for auctioning seized property through the Federal Property Management Agency

Rosimushchestvo is an organization that sells seized property

The basis for regulating the sale of seized and confiscated property is legal acts relating to the executive system and civil legislation. These include:

• 229 Federal Law concerning enforcement proceedings;
• 447-449 articles of the Civil Code of the Russian Federation, defining the bidding procedure;
• an agreement between the FSSP and the Federal Property Management Agency regulating the interaction of services.

Before entering the agency, items go through the FSSP. Property is allowed for auction if:

• the FSSP has a resolution to transfer it to the Federal Property Management Agency for implementation;
• bailiffs collected title documents for each item to be sold;
• it was seized according to the inventory;
• There is an acceptance certificate for it.

The sale can be carried out either by the Federal Property Management Agency itself or by special companies with which the agency has contractual relations. After the bailiffs have issued the resolution to the agency:

• given 5 days to make a decision on selling things independently, or transferring authority to accredited organizations;
• it is necessary to accept the objects under the act within 10 days;
• in case of receipt of objects for sale that cannot be transferred in kind, documents for them are accepted;
• post publicly information about the auction, within the period approved by law, depending on the type of object/

The last point is actively monitored. Since 2021, sanctions have been introduced for violation of this rule. Publicity does not provide an opportunity to use one’s official position and information by selling objects to the “right” people at a reduced price.

No person related to organizing the sale of seized property can become a participant. Therefore, the Federal Property Management Agency reports on the start of bidding to the FSSP within three days.

The official portal where sales are made is www.torgi.gov.ru. Information can also be found on the website of the Federal Property Management Agency itself https://rosim.ru/activities/sales/confiscat

Property may be sold at open sales, auctions and through commission sales. The period within which the agency is obliged to sell seized items is legally limited. It is equal to two months.

Time limit for the sale of the debtor's property by bailiffs

After the court decision on debt collection has entered into legal force and a writ of execution has been received by the SSP, the SSP official initiates enforcement proceedings and searches for property.

Within a month from the date of search for property, it must be assessed by the bailiff himself or with the involvement of a specialist (if its preliminary value is more than 30 thousand rubles).

Then, within a period not exceeding 20 days (but not less than 10), the property is transferred for sale. Acceptance of property is carried out within a period not exceeding ten days.

Initially, the property must be sold within a month; after this period, its value is reduced by fifteen percent, and if a buyer is not found within this period, then the property is offered to the creditor as a means of repaying the debt. Moreover, the value of this property should be 25% lower than the estimated value.

If the creditors do not want to accept the property as repayment of the debt, then it is transferred to the owner. Thus, the total period for the sale of property is 3 months (conditionally, of course).

Property sold through auction

The legislation specifically specifies what type of objects must be sold through sale at auction. Public tenders must be organized for:

• real estate objects;
  The agency tries to sell the most significant and expensive lots independently
• objects valuable from the point of view of history or art;
• items whose price is more than half a million;
• valuable papers;
• mutual fund shares (by decision of the bailiff);
• accounts receivable;
• property rights.

The agency tries to sell the most significant and expensive lots independently.

The agency is obliged to sell the property within a two-month period. The result of a successful sale is the receipt of money from it to the FSSP accounts. The implementation process is considered complete.

Appealing the procedure for selling property

In addition to the above, we consider it necessary to tell you how and where to complain if your rights are violated by the actions of SSP officials.

So, such a complaint can be filed in the order of subordination - to the senior bailiff. You can send a complaint by mail (including electronically) or hand it in yourself. In addition to the mandatory details of the person filing the complaint and the person who violated the right, you must indicate the details of the non-normative act about which you are complaining or the actions/inactions of the SSP employee, and describe the situation itself. The petition part should indicate what you want to achieve if the complaint is satisfied. Of course, sign, date and attach documents confirming your requirements.

The complaint itself must be considered within a period not exceeding thirty days from the date of its receipt.

Bidding - auction or competition

Article 448 of the Civil Code provides for the sale of property at auction in the form of an auction or competition. Both forms of organizing bidding are carried out with the participation of a commission, the composition of which cannot be less than 5 people.

An auction is used when the objects being sold have high material value. The goal of the organizers is to obtain the maximum possible amount for the property.

Through competition, not only items are often sold, but also services, work opportunities, etc. Obtaining maximum profit in competitions is leveled out, conditions are put at the forefront.

The better the offer on the terms of purchase, the greater the chances of purchasing the lot. The forms differ in terms of timing: auctions go quickly, but competitions can take a long time until the commission chooses which purchase offer is better.

Actions of the FSSP on the sale of collateral property

Collection of the debtor's property may not work through auction. The bailiff may not continue the collection, but transfer the property to the recoverer at a price that is 25% lower than the stated one. Then the claimant writes an application to the FSSP, indicating his consent or refusal. Five days are given for this.

If the person on whose initiative the seizure, collection and sale of property took place refuses the offer (does not respond), the debtor will receive the property and the sale will not take place. The bailiff draws up the relevant resolution and submits it to a senior officer for approval. When transferring property after foreclosure, it is imperative to draw up a deed.

You can get legal assistance regarding the sale of debtors' property by bailiffs on our website.

How is the price of objects determined?

Since property is alienated from debtors in court, they determine the initial price of the seized property.

If the writ of execution does not contain information about the price of the alienated items, then the bailiff is obliged to send a request to the court for its calculation. The exception is items that have been sold as collateral, and things that must be assessed by experts.

The latter include:

• Jewelry;
• paintings;
• works of art;
• antiques;
• securities, etc.

Bailiffs are required to conduct an expert assessment of any item if it is more than 30 thousand rubles. The price is usually determined by the market value of the item, taking into account its wear and tear.

The price of collateral is stated in the accompanying documents: loan and mortgage agreements or purchase and sale agreements. The value of the property is reflected in the FSSP resolution.

Initially, the item cannot be sold at auction below the established value. The amount of the deposit for the lot also depends on it, as it is calculated as a maximum of 10% of its price.

For collateral property, the deposit threshold has been reduced to 5%. During the sale process, it may be necessary to reduce the price of the lot. Bailiffs do not have the right to make an item cheaper on their own. Any reduction in price must be carried out by the court at the request of the FSSP.

When is the sale of the debtor's property impossible?

To begin with, let us tell you that according to the norms of the current legislation, not all of the debtor’s property can be sold, with the exception of:

• The only residential real estate suitable for habitation (more information about the debtor’s only home is available at the link);
• Property that the debtor needs to carry out professional activities (for example, a car, office equipment);
• Individual items (wardrobe items, etc.);
• Property related to household use, furnishings;
• Food products.

The implementation itself can be either independent (subject to restrictions) or completed by force.

The debtor may independently sell property, the value of which should not exceed thirty thousand rubles, upon appropriate petition.

Compulsory implementation is carried out with the involvement of specialized organizations (Rosimushchestvo or the bailiff service).

What are the disadvantages of enforcement?

First of all, the amount received from such a sale will be lower than the market value, so if the debtor manages to sell his property before it is arrested, this will only be to his benefit. Note! The value of compulsorily sold property cannot be lower than the estimated value (there are exceptions).

Please note that real estate, securities, objects of historical and artistic value, expensive property (according to estimates of over five hundred thousand rubles) are sold only at auction.

USEFUL : read about the sale of property of a bankrupt debtor using the link

Bidding process

How are auctions of seized property carried out? The bidding procedure is described in detail in the Methodological Recommendations of the Federal Property Management Agency for 2021. The process is divided into several stages:

1. Preparing for the event.
2. Registration of applicants.
3. Conducting auctions.
4. Registration of the end of the auction.
5. Re-listing of lots for sale.

At the preparation stage, a lot is formed, information about which is posted publicly. At the same time, information about the organizer of the auction and the conditions for participation in it should be published. The following information is posted in the media and on the organizer’s portal at least 30 days before the auction:

• with the name of the object being sold, a description of its condition, technical characteristics;
• about the price of property, deposits for candidates for participation in the auction and the bidding step;
• about the organization that conducts the sale, including contact details and account details;
• about the place and time of the auction;
• about the procedure for accepting applications, the deadline and place for their submission.

At the same time, a commission is assembled that will implement the sale of the lot, and conditions are created for its work. During the registration period:

• applications are accepted from applicants;
• information about participants is entered into the registration journal;
• each candidate is assigned a number;
• work with candidates is carried out (for example, documents on the object of sale are provided for review, controversial issues are discussed);
• contracts for the payment of deposits are drawn up.

The collected information is sent to the bidding commission. After screening candidates, they are notified whether they are accepted or rejected from the auction.

The role of process controllers is assigned to the commission. She can limit the number of participants, monitors compliance with the auction rules, records the winner and recognizes the auction as invalid.

If the auction is successful, the winner is obliged to transfer funds for the lot to the account of the company that organizes the auction.

Otherwise, the winner will lose the deposit and the bidding process will be declared invalid. At the end of the auction, an agreement is signed with the winner and the object is transferred.

If the auction does not take place, the Federal Property Management Agency is obliged to notify the FSSP within 24 hours. If the auction was held by an accredited organization, then it is obliged to notify both the FSSP and the Federal Property Management Agency about the failure.

In this case, the FSSP takes action to reduce the cost of the lot by 15% and re-sends the resolution to the Federal Property Management Agency. The sales process is repeated.

Petition for the sale of the debtor's property

At the request of a person, namely the debtor himself, his property (not exceeding the value of 30 thousand rubles) can be alienated by him independently (Article 87.1 of the Law on Enforcement Proceedings).

The deadline for submitting such a petition is no more than 10 days from the moment he learned about the assessment of the property. If there are violations, then we, as lawyers for the protection of the debtor’s rights, will help you.

After the bailiff receives the above-mentioned petition, he issues a corresponding resolution, according to which enforcement measures are postponed. In addition, the commented resolution should determine that funds from the sale should be deposited with the SSP within no more than 10 days from the moment when the specified non-normative act was issued. In addition, the debtor is warned of liability for failure to transfer funds, as well as for inaction resulting in failure to sell property.

After the expiration of the 10-day period, the bailiff may invite the owner to keep the unsold property for himself, otherwise it will be transferred for compulsory collection, a resolution, which is sent to the parties to the enforcement proceedings.

What is needed to participate in the auction

How to buy confiscated property from the Federal Property Management Agency?

How can an individual participate in Rosimushchestvo auctions? Any individual or legal entity can take part in the auction. According to Article 449.1, exceptions are made for citizens who are directly related to the administration of auctions.

It is prohibited to participate in FSPP auctions for those who:

• assessed the property;
• organized the auction;
• is a representative of the FSSP or another official who can influence the results of sales;
• is a helper or family member of the listed categories.

In addition, the former owner of the property is not allowed to attend the auction. Eligible categories of persons should apply to participate.

Completion of trades

The proceeds from the lots are transferred to the bailiffs. Subsequently, the funds are distributed to offset the owner’s debts.

If more funds are received than the current amount of the debt, the difference is returned to the former owner of the property. The auction is considered completed at the moment when the full cost of the property is in the FSSP account.

There are options in which the auction is declared invalid or failed. The process is declared invalid based on a court decision if:

• the application for participation was rejected unlawfully;
• the winner of the auction without reason was the person who did not offer the highest price;
• the auction did not take place at the time stated;
• the participant was accepted to the auction in violation of the law;
• other violations of the law occur.

In this case, the trading result is canceled. The costs of the auction are distributed among the violators. The auction is considered invalid when:

• there is only one application for tender;
• registered bidders did not take part in the auction;
• none of the candidates wanted to beat the starting price of the lot;
• the winner did not pay the cost of the won item on time.

With this result, the price of the lot is reduced by 15%, and a repeat auction is held. The duration is from 10 days after the first auction to a month.

If it was not possible to sell the property a second time, the creditor is offered to accept the property in kind as payment for the debt. 75% of the cost established at the beginning is taken into account.

Thus, the work of the Federal Property Management Agency is aimed at ensuring the sale of property seized from debtors in order to cover their debts. It is fully regulated and controlled by law and is produced in conjunction with the FSSP.

What is state confiscation:

See also Telephone numbers for consultation May 19, 2021 Yulia Yuryevna 1039

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Discussion: 6 comments

1. Ivan says:
   07/31/2018 at 21:18

   In theory, such auctions should allow all citizens to buy property at fairly low prices, but in fact this does not happen. Apparently only friends of officials have access to information about the tenders.

   Answer

   Dmitry says:

   10.27.2018 at 17:10

   Ivan, if you are careful, pay attention to the fact that the legislation is designed in such a way as not to allow these frauds. It’s true that purchasing debtors’ property is a rather specific topic. However, those who have the brains, regardless of race and origin, can purchase this property. From an investment point of view, it is not always as profitable as buying and selling contraband. But, given the zero risks, from the point of view of legislative acts, this is certainly more profitable than the direct market. Our company does exactly that – registration and work with debtors’ property. Znamenka15dotcom

   Best regards, Dmitry

   Answer

   Tigran says:

   06/19/2021 at 08:25

   Of course it’s profitable, have you ever taken part in the redemption of a confiscated car? When a good car was dispossessed before being put up for auction. We sold new headlights, installed the old broken ones, removed all the airbags, sold them, pulled out the sunroof, and installed the broken broken one. What are the benefits and who benefits? For those who put it up for auction, yes? And it’s so profitable to rent such a car without diagnostics! They sell a car for 5 million, but you can’t start it and you don’t know if the gearbox or engine is working. External and internal inspection only. All your auctions were intended in theory to be sold at the maximum price, but in fact you are ruining people’s lives, selling their property because it is profitable for you and throwing away pennies to them, and you are wasting the main share. That's the whole procedure of the Federal Property Management Agency.

   Answer

Value of the pledged property

Bailiffs must not only seize the property of debtors, but also correctly evaluate it before it survives collection. True, the assessment is not carried out by the bailiff himself. This should only be done by a licensed organization, which will prepare a report based on its activities.

A company that carries out an assessment of property owned by the debtor must pay attention to the implementation of several sets of manipulations:

• Information is collected about the object being assessed. Once the data is collected, it needs to be analyzed.
• To determine the value of assets, only optimal methods should be used.
• The results should be summarized by developing a detailed report.

After the seizure of the debtor's property has been carried out, the bailiff has a month to prepare for the auction. Seizure may be imposed on cultural property, and even banknotes that have collectible value.

Sometimes FSSP bailiffs themselves estimate at what price the property will be sold. The reference point in this case is the market price. Moreover, it is often the minimum threshold in order to sell the property faster. But the assessment results can be challenged. This is given 10 days from the moment the person disputing the price for sale receives information about it.