Deposit
The deposit is the sum that accompanies a purchase bid in a court auction. It is not an advance on the price in the proper sense: it is the guarantee that the bidder is serious and will be able to pay the balance.
How much it is
Article 571 of the Code of Civil Procedure sets the minimum: the bid is not effective if the bidder does not provide a deposit “of no less than one tenth of the price proposed by them”.
One tenth is the legal minimum, not a fixed rule. The sale order can ask for more, and it happens. The figure that counts is always the one written in the order for the lot you are interested in.
Which price it is calculated on
This is where people often go wrong. The deposit is not 10% of the starting price: it is 10% of the price you offer.
If the starting price is €80,000 and you offer exactly €80,000, the minimum deposit is €8,000. If you offer €95,000 to secure the lot, the minimum deposit becomes €9,500. Anyone who calculates on the starting price rather than on their own bid turns up with an envelope that risks being ineffective.
How it is paid
The method is set by the sale order and varies from court to court: a non-transferable banker’s draft made out to the procedure, a transfer to a dedicated account, or payment through the portal in online sales.
Where a banker’s draft is required, article 571 says it must be placed inside the sealed envelope together with the bid. It is not handed over separately.
If you do not win
You get it back. In a sale without an open auction, the sums of unsuccessful bidders are returned after the bids have been examined.
In an open auction (incanto), article 580 adds a rule few people know: the deposit is returned immediately after the close, unless the bidder failed to attend without a documented and justified reason. In that case only nine tenths are returned, and the rest stays with the enforcement proceedings.
If you win and do not pay
This is the scenario that makes the deposit a serious matter. Article 587 provides that, if the price is not paid within the deadline, the judge declares the forfeiture of the award and orders “the loss of the deposit by way of penalty”.
And it does not end there. A new sale is held: if the price it yields, together with the forfeited deposit, is lower than the previous price, the defaulting successful bidder must pay the difference.
If payment was in instalments and even a single instalment is missed by more than ten days after the due date, the instalments already paid are also lost by way of penalty.
It is not just a formality
It is worth knowing that the deposit also counts in choosing the winner. When there are several bids, article 573 says the judge identifies the best one taking into account “the amount of the price, the deposits provided, and the form, manner and timing of payment”.
In other words: at the same price, a higher deposit and faster payment can tip the outcome. It is not a bureaucratic detail; it is a lever.
Before bidding
Three checks, all in the sale order for the lot:
- The percentage required, which may be higher than the legal one tenth.
- The method of payment and the exact payee.
- The deadline by which the sum must be available, which in online sales comes before the hearing.
The rest of the process, from the envelope to the balance, is covered in the guide on how to submit a bid and the one on the timescales and risks of paying the balance.