public auction | public auction Public auction

public auction Public auction




A public auction is a procedure for the sale of a good through which it is intended to determine the buyer and the price, according to the system of competition between several potential buyers, awarding the good at the highest price offered. In addition, the public auction differs from other types of auctions by the fact that any person can bid for the purchase of the good.

The term public auction is often also related to the judicial auction that is carried out, obligatorily, for the sale of one or more assets of a debtor that have been seized for payment to their creditors.

Types of public auctions
Public auctions can be forced or voluntary.

Are voluntary auctions in which the subject freely decides to sell a good, and decides that the way to maximize the sale price is subject to the public auction procedure. This procedure is used regularly, for example, in sales of works of art.

The auctions of seized assets to a debtor are obligatory. In that case, the law usually requires the public auction procedure to give greater transparency to the sale, and allow the price to be received by the debtor in exchange for the good as high as possible.

In the case of a public auction for debts, the sale price of the goods is destined to the payment to the creditors and, in case there is a surplus, this remains in the debtor's property. It is also necessary in their procedures to comply with a series of formalities imposed by law to give more transparency to the auction and avoid that the result of the same can be manipulated. Typical requirements in these cases are advertising of the auction and compliance with deadlines.