Compulsory auction (Zwangsversteigerung) - bidding

• Security deposit (Sicherheitsleistung) You must be prepared to provide a security deposit to the Versteigerungsgericht (auction court) immediately after submitting your bid, if this is requested by parties to the proceedings (e.g. creditor or debtor). The security deposit amounts to 10% of the market value (Verkehrswert) of the property. Ways of providing the security deposit: • Transfer of the amount to the account of the Kosteneinziehungsstelle der Justiz (KEJ, judicial fee collection office) Please note: The security deposit must be transferred in good time – approximately 1 week before the auction date. You can find the account details of the Kosteneinziehungsstelle der Justiz on the website of the responsible auction court (see the note on responsibility/Zuständigkeitshinweis). If the money later turns out not to be needed as a security deposit, the court will arrange for it to be transferred back immediately after the auction date. • Bundesbank cheques or Verrechnungsschecks (bank giro cheques) Please note: The cheques must have been issued by a credit institution (bank, Sparkasse) licensed domestically. The date of issue must not be older than three working days before the auction date. • Bank guarantees Not accepted as a security deposit are, for example: 1. Cash 2. Savings passbooks 3. Securities 4. Written confirmations of account balances from banks 5. Private cheques (e.g. issued by you yourself)

• valid identity card (Personalausweis) or passport A driving licence is not sufficient. • Notarized power of attorney If you wish to bid on behalf of another person who is not present at the auction appointment (Versteigerungstermin), you will additionally need a notarized power of attorney to bid. This also applies if you wish to bid on behalf of your husband or wife. • Certified extract from the commercial register (Handelsregister) If you wish to bid on behalf of a company (e.g. a GmbH), you must prove, by means of a certified extract from the commercial register (Handelsregister) (§ 15 HGB www.gesetze-im-internet.de/hgb/__15.html), that you are authorized to represent that company. The commercial register extract should be no more than 15 days old; however, the currency requirement for the commercial register extract is handled differently by the different auction courts (Versteigerungsgerichte) and should therefore be checked with the foreclosure auctions (Zwangsversteigerungen) department of the responsible local court (Amtsgericht). • Approval from the family court (Familiengericht) In individual cases (for example, if you are placing bids on behalf of your minor children), you must present the corresponding approval from the family court (Familiengericht) at the auction appointment (Versteigerungstermin). You must apply for this in advance at the responsible family court.

Are fees charged for bidding? You do not have to pay any fees for bidding. Do fees arise from winning the auction (Ersteigerung)? If you are awarded the bid (Zuschlag) – meaning you submitted the highest bid (Meistgebot) and won the property at auction –, the auction court (Versteigerungsgericht) then charges fees under the Gerichtskostengesetz (GKG www.gesetze-im-internet.de/gkg_2004/BJNR071810004.html#BJNR0 - Court Fees Act). The amount of the fees depends on the sum of the cash bid (Bargebot, the amount of money bid) and the value of the encumbrances to be assumed (e.g. Grundschulden [land charges]).

• Gesetz über die Zwangsversteigerung und Zwangsverwaltung (ZVG) (Act on Compulsory Auction and Compulsory Administration) www.gesetze-im-internet.de/zvg/BJNR000970897.html#BJNR000970

• Notes for bidders www.zvg-portal.de/index.php?button=Hinweise%20fuer%20Bieter

The competent Versteigerungsgericht (auction court) is the Amtsgericht (local court) in whose district the property is located. Directory of localities and courts www.justizadressen.nrw.de/og.php?MD=nrw