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Trouble shooting Q&A

Trouble shooting Q&A

There are tenants on the property I won the bid. What do I do?

When there are tenants, first you should review the document set for detailed information about the tenants.

When tenants are normal tenants who had been leasing the property before the foreclosure, the documents may indicate that the tenants are entitled to six months more of leasing before required to move out. In such a case, you as the lessor have the right to lease the property, so you should receive the rent. If you acquired the property for investment, it is better that the tenants remain as lessee on the property, so you may want to negotiate with them.

Most importantly, you must note that the tenant’s right to rent the property takes precedence over most other rights.

The document may indicate that the tenants have the right to renew the rent enforceable against the buyer. In such properties you cannot move in or use even after winning the bids. Until tenants decide to move out on their own, you cannot do anything.

Before bidding you should verify the rights of tenants with the document set.

The property is occupied by possessors. What do I do?

It used to be possessors were often associated with anti-social elements, but not any more.

Auctioned properties often have possessors; rather a normal state of affairs, not to be too concerned about. You should first check to see if the possessors are the same people the document sets indicate. If they are, then you should verify their rights, and negotiate the eviction date with them. If they refuse to negotiate, you may proceed with the legal procedure to evict them, asking the court to issue the eviction order. You must note, however, that the court only helps in procedures, and that only you can make things happen by taking actions.

The property has a large amount of debt, payment obligations in arrears. What do I do?

Apartments often have some payment obligations remaining. Act on Building Unit Ownership stipulates that the specific successor, you, is liable for those obligations; and the provisions apply to auctioned properties as well, so you are liable for the payment obligations.

Not just those arrear for two to three months, there are those accumulated over five to ten years. The Civil Code, however, allows prescriptions for credits over ten years, so you may not have to pay for all.

When there is a large amount of liabilities, you should consult an auction concierge and negotiate for terms.

The property is full of trash. What do I do?

It is rather a common occurrence. Just because you have acquired the property, however, you may not throw them away.

What you have acquired through the auction is the real estate, and not the personal properties inside it, which still belongs to the previous owner of the property.

Thus, you can only ask the previous owner or possessor to remove them. If they do not cooperate, you can only rely on the legal process to remove or dispose them, asking the court to issue the order. In the worst case, you must pay for all the removal, transport, temporary storage and disposal of the properties in a compulsory execution. So if the photographs in the document set show a significant amount of trash and personal properties, you should allocate a budget for them. contents