A judicial auction is the public sale of an asset ordered as part of enforcement proceedings. When a debtor stops paying and the court orders the sale of their property to settle the debt, that property goes to auction. Since the aim of the proceedings is to recover what is owed, not to get the best possible sale price, these properties often go for less than their market value. That is where the opportunity lies for an investor who knows how to analyse what they are buying.
Today judicial auctions in Spain are not held in a courtroom. They are held online, on the Auction Portal of the State Agency Official State Gazette (BOE). The whole process, from the publication of the notice to the bidding, is done electronically, which has opened these deals up to many more investors.
In this article
The process, step by step
Registration on the BOE Auction Portal
To take part you have to register as a user on the BOE Auction Portal. You identify yourself with a digital certificate or the Cl@ve system. Without that registration you cannot check your personal area or, later on, bid.
To see which homes are coming up for auction in your province before you register, you can use a search tool such as Subastas de Viviendas, which gathers BOE and Social Security auctions with their key details. To bid, though, you always have to go to the BOE Auction Portal.
Study the notice and the registry situation
Each auction publishes a notice with the conditions: the appraised value, the type of auction and the details of the asset. But what really matters is the registry position. Before bidding, ask the Land Registry for a land registry extract (nota simple) to see the charges, the owners and the annotations affecting the property.
Lodge the prior deposit
To be able to bid you must lodge a prior deposit, which for real estate is 20% of the value at which the auction opens, with a minimum of €1,000 (the court can raise or lower that percentage, so check the figure in each notice). In proceedings started before 3 April 2025 the old rules apply: a 5% deposit and 40 days to pay the rest. That deposit blocks the amount for the duration of the auction and is returned to those who are not the successful bidder.
Bid during the open period
BOE auctions stay open for a set period. They are not settled in an instant. The auction runs for twenty calendar days and, in enforcements started on or after 3 April 2025, bids are secret: the portal does not show whether there are other bids or how much they are. You can change your bid, but only the last one before the close counts. Set a maximum price beforehand and bid that.
Approval of the auction award and award decree
Once the period closes, if you are the highest bidder the court approves the award in your favour. The award is formalised through an award decree, which is the document certifying that the property becomes yours.
Pay the rest of the price
The deposit is deducted from the final price, but the rest of what you offered has to be paid within twenty days of the close of the auction (if your bid is below 70% of the auction value, from when the court asks you to pay). Have your financing arranged before you bid, because if you do not pay on time you can lose the deposit.
Obtain possession
Once the award decree is registered, the last step is to take possession of the property. If it is empty, that is usually straightforward. If it is occupied, you may have to ask the court to order an eviction, which makes everything take longer.
The risks you need to know
An auction discount is not free. It comes with uncertainty, and these are the risks to bear in mind before you take part.
Prior charges are not cancelled. When the property is awarded to you, the charge being enforced and those registered after it are cancelled, but the charges registered before it (prior mortgages, seizures, liens) survive and become the successful bidder's problem. That is why it is essential to check in the Land Registry which charges exist and what their order of priority is.
The property may be occupied. Many properties at auction are inhabited, sometimes by the debtor themselves, sometimes by third parties. Recovering possession of an occupied property may require an eviction procedure and time, which reduces the appeal of the initial discount.
You can rarely see the inside. You can ask the court to let you inspect it during the auction, but only if the person living there consents (article 669.3 of the Civil Procedure Act), and often they do not. The real condition of the home (necessary refurbishment, damp, defects) is an unknown that has to be taken on or estimated by other means.
Before bidding, always check the registry charges on the property. The charges registered before the one being enforced are not cancelled with the award and become the buyer's responsibility. An up-to-date land registry extract (nota simple) from the Land Registry is the first document you should review, not the last.
The auction transfer (cesión de remate) as an alternative
There is a way to end up with an auctioned property without bidding yourself: the enforcing creditor, or a subsequent creditor, the only parties the law allows to do this, bids and assigns the award to you before the award decree. It is the auction assignment (cesión de remate). It suits a creditor who does not want to keep the property and an investor who wants to come in with the deal already studied. If you want to know more, we have explained what an auction assignment is and also the differences between auctions, auction assignments and NPLs.
Why work with a specialist firm
What separates a good purchase from an expensive problem is the analysis beforehand. You have to study the registry charges, assess the occupancy, estimate the condition of the property, work out realistic timeframes for the proceedings and set a maximum price consistent with the return. All of that takes legal judgement and experience in this market.
A specialist lawyer or firm reviews the land registry extract, interprets the notice, checks the order of the charges and warns you if the property is occupied before you bid. Whether the discount turns into a real return depends on that preliminary work. The auction is only one of the routes to discounted assets. There is also the purchase of unpaid debt, as we explain in what a REO is.
At Equus Capital, a legal and wealth advisory firm based in Valencia, we study each auction before you bid: the charges, the occupancy and the expected return. We look at the deal with our own legal and financial judgement, and we stay with you from the first analysis through to taking possession. The first consultation is free and with no obligation.
Frequently asked questions
How much money do I need to bid at an auction?
To be able to bid you must lodge a prior deposit, which for real estate is 20% of the value at which the auction opens, with a minimum of €1,000, although the court can change that percentage and the exact figure is stated in each notice. In addition to the deposit, you must have the financing for the rest of the price arranged, since as a rule it has to be paid within twenty days of the close of the auction. In proceedings started before 3 April 2025, the deposit is 5% and the payment deadline is 40 days.
What happens if the home is occupied?
An occupied property may mean asking the court for an eviction to recover possession, which takes longer and adds uncertainty. So check whether it is occupied before you bid, and build that cost, in time and in paperwork, into the price you are willing to offer.
Can debts or charges on the property be inherited?
With the award, the charge being enforced and those registered after it are cancelled, but the charges registered before it (prior mortgages, seizures, liens) are not cancelled and become the successful bidder's responsibility. That is why it is essential to review in the Land Registry the charges on the property and their order of priority before taking part.
Can I visit the home before the auction?
You can ask the court to inspect it during the auction, but it only happens if the person living there consents (article 669.3 of the Civil Procedure Act), and often it does not. This means that the real condition of the home is an unknown that has to be estimated by other means, such as the information in the notice, the registry situation and knowledge of the area. It is one of the risks you have to take on when buying at auction.