Judicial sale (venda judicial)
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A venda judicial is the sale of a seized asset in proceedings before a court, in order to pay creditors from the proceeds.
In everyday use, venda judicial means a sale made in civil enforcement proceedings (also called venda executiva). It differs from a , run by the Tax Authority, and from a sale in proceedings.
CPC article 811 provides for several methods: , , sale at an auction house and , among others. For real estate, the law prefers the electronic auction, which runs on e-Leilões.
The main effect is in article 824 of the Civil Code: the sale transfers to the buyer the 's rights over the property, free of mortgages and seizures and of other property rights without earlier registration.
Example
Illustrative example: a creditor enforces a €40,000 debt. The seizes a shop, sets the base value at €90,000 and puts it up for electronic auction. The shop sells for €95,000; the creditors are paid and the remainder goes to the debtor.
In practice, at an auction
A judicial sale is not an ordinary purchase. There is no notarial deed: the document is the . The property is sold as it stands and, according to e-Leilões, without warranty unless stated otherwise. The price is paid within 15 days of notification.
The sale can be annulled in limited cases, for example if an that was not taken into account comes to light, or the property does not match what was advertised (CPC articles 838 and 839). Guide: Liens and charges in a judicial sale.