Annulment of enforcement auction

Annulment of the auction is the remedy for setting aside a forced sale on account of irregularities. Defective announcements, deficiencies in the sale preparations, obstruction of bidding and being misled about the asset's essential characteristics are typical grounds.

The application is made to the enforcement court within the statutory period from the auction date, though for some grounds the period runs from discovery. Standing is limited to those listed by statute, chiefly the debtor, the creditor, parties with registered interests and bidders. Until the annulment case concludes, the auction does not become final and ownership does not pass to the buyer.

If the application is rejected, the applicant is fined a statutory percentage of the auction price, a rule designed to deter bad-faith challenges. Given this risk, the remedy should be pursued only where concrete and provable irregularities exist.