Balance of the price: how long you have and what you risk
You have won the property. From that moment a clock starts ticking, and that is the real point of risk in the whole operation.
Not the bidding: the balance. Because if the deadline passes and the money is not there, you do not just lose the property. You also lose the deposit, and in some cases even more.
How long you have
The deadline is set by the judge and written in the notice of sale. In practice it is almost always 120 days from the award, but it is not a rule of law: some courts state 90 days, others 60, and for particular assets it can be shorter.
It is the first line of the notice you should read, even before the price. A 60-day deadline and a mortgage still to be processed do not go well together.
The deadline runs from the award, not from the transfer decree and not from when the delegate writes to you. And it is peremptory: it is not a rough guideline.
What happens if you do not pay
It is called forfeiture of the award and is governed by art. 587 of the Code of Civil Procedure. There are three consequences, in order of seriousness.
You lose the deposit. The one paid with the bid, usually 10% of the price offered, is retained — the code describes it as a loss “by way of penalty”. On a €100,000 property that is €10,000 you will not see again.
You lose the property. The asset goes back on sale and a new attempt is held.
You may have to pay the difference. This is the part almost nobody knows. Art. 587 says that if the price obtained at the new attempt, added to the forfeited deposit, is still lower than the previous price, the defaulting successful bidder must pay the difference.
An example: you won at 100,000 with a 10,000 deposit, you forfeit the award, and at the next round the asset sells for 80,000. The sum is 80,000 + 10,000 = 90,000 against the previous 100,000: the difference you can be asked to pay is 10,000, on top of the deposit already lost.
This has to be factored in before bidding, not afterwards.
The real problem: the mortgage
Most forfeitures start here.
The mechanism is awkward by design: the bank wants to see the transfer decree, or at least the final award, before lending, and the decree comes after the balance. So you need a bank willing to lend on a property that is not yet yours, with security that is perfected afterwards.
There are dedicated products — mortgages for court auctions — and some courts have agreements with lenders that know them. But timescales remain tight: between processing, the bank’s valuation and approval, 60–90 days can easily pass, and you are spending them within your 120.
Three practical rules that make the difference:
Go to the bank before bidding, not afterwards. With the court’s appraisal report in hand, the address and the cadastral data. An approval in principle before the auction tells you whether you can afford that bid.
Say it is an auction. Some branches do not handle these mortgages, and finding out on day sixty is a serious problem.
Keep a liquid plan B. If the bank stalls, what makes the difference between losing the deposit and closing the operation is being able to find the money elsewhere within a few weeks.
Can you ask for an extension?
You can ask. There is no guarantee you will get it.
The enforcement judge may grant a deferral if the request is justified and arrives before the deadline, not after. A documented bank application at an advanced stage is a reason that is sometimes accepted; “I haven’t managed to find the money yet” is not.
The practical rule is that you ask for an extension when you have proof that the delay does not depend on you, and you ask for it weeks in advance through the delegate.
What you pay on top of the price
The balance is not just the price minus the deposit. Together with it you normally have to pay the sums for transfer taxes and costs, which the delegate calculates and notifies.
These items weigh on the total: registration tax or VAT depending on the seller, mortgage and cadastral taxes, the delegate’s fee, procedural costs. On an €80,000 property they can add up to several thousand euros, and they have to be found together with the rest, not afterwards.
The delegate sends the exact calculation. Asking for it as soon as you win, instead of waiting for it to arrive, is the simplest way to avoid surprises on day 110.
After the balance
Once the balance is paid, the judge issues the transfer decree: it is the act that makes you the owner, and it replaces the notarial deed.
From there come registration, the cancellation of prejudicial formalities — mortgages and attachments are cancelled by the same decree, you do not carry them with you — and, if the property is occupied, the release order.
A few weeks usually pass between the balance and the decree. Between the decree and actually having the property at your disposal, if it is occupied, much longer can pass.
Frequently asked questions
How long do I have to pay the balance? The notice of sale says. In practice almost always 120 days from the award, but it can be less.
Can I pay in instalments? In some procedures the judge allows payment in instalments, within set limits and on request. Be careful, though: the code provides for forfeiture even for anyone who fails to pay a single instalment within ten days of the due date, and in that case the instalments already paid are also lost by way of penalty. Check the notice: it is not the rule.
If I do not pay, do I lose only the deposit? You lose the deposit and the property. And if the price at the new attempt plus the forfeited deposit is still below the price you offered, you may be asked to pay the difference.
Can I withdraw after the award without consequences? No. The award is not a reservation: it is binding.
Should I apply for the mortgage before or after the award? The application should be started before. Disbursement happens afterwards, but if you start looking for a bank once you have won, the timing almost never works out.
This guide describes the general framework. Deadlines, payment methods and any instalment arrangements are set by the judge and stated in the notice of sale: that always prevails.