Housing from a trustee - how to buy and is it worth it?

Buying a property from a trustee is, next to bailiff auctions, another way of finding an attractively priced home. Before deciding to buy, however, it is worth knowing the transaction process inside out to find out what a buyer can expect.

When bankruptcy is declared, the assets of a debtor being an entrepreneur or a consumer become the bankruptcy estate. It comprises all rights and assets belonging to the debtor as of the date of the declaration of bankruptcy, including, inter alia, the debtor's ownership right to real estate, right of perpetual usufruct, co-operative ownership right to premises, share in co-ownership of assets and rights. Thus, the debtor loses the right to manage, use and dispose of property constituting the bankruptcy estate, which in practice means that it is impossible to sell real property or premises or conclude a lease or tenancy agreement. How, then, to buy property from a debtor declared bankrupt?

Inventory and subsequent liquidation of assets

Krokiem następującym po ogłoszeniu upadłości jest sporządzenie spisu inwentarza przez syndyka. Na jego podstawie następuje oszacowanie majątku masy upadłości, którą dłużnik posiadał na dzień wydania przez sąd postanowienia o jej ogłoszeniu. Ustalenie składników majątkowych oraz ich wartości jest konieczne do przygotowania procesu likwidacji masy upadłości. Zanim jednak do niego dojdzie, sędzia-komisarz musi zatwierdzić warunki sprzedaży.

In the case of real estate, the legislation provides for the possibility to sell it by tender, auction or negotiated sale. - The basic form of sale in bankruptcy proceedings is a public tender, which is conducted by the trustee and supervised by the judge-commissioner. (...) The next of the methods of liquidation of the bankruptcy estate is a sale by negotiation. However, this does not mean that it is a completely arbitrary and unregulated process. The sale of real estate, perpetual usufruct right, cooperative ownership right to premises requires the consent of the creditors' council or the judge-commissioner (when the creditors' council has not been appointed).

The material appeared on bankier.pl:

29 March 2018:
" Housing from a trustee - how to buy and is it worth it?