The partition auction is a particular variant of the classic compulsory auction. Under Section 180 ZVG, it is intended to dissolve the community. In contrast to the other enforcement measures, the purpose of the partition auction is not to satisfy a claim. This form of compulsory auction is often used if the parties involved cannot agree on the whereabouts of their joint property. If a dispute has arisen between the parties about the whereabouts of a property in which each party has co-ownership, the partition auction serves to dissolve the community of owners.
An application by an entitled person to the competent court is required for the partition auction. All co-owners are entitled. If the competent court issues an order, the property is seized. Under Section 23 (1) Sentence 1 ZVG, this also has the effect of a prohibition of sale.
The following information/document must be attached to the application:
- Details of all co-owners,
- description of the property in question,
- extract from the land register,
- certificate of inheritance, if applicable.
An enforceable title is not required here (cf. Section 181 (1) ZVG).
After the competent court has approved the application, the property’s value is determined utilising an expert opinion. Then the value limit that must be outbid at the auction of the property is determined. After the auction, the sum paid, minus the costs still to be offset, is distributed among other owners. The distribution of the proceeds is the responsibility of the original co-owners.
Cases in which a partition auction often occurs are those in which, for example, a partnership under civil law (German Partnership Agreement (GbR)), marital communities or communities of heirs are involved.
If you have any further questions about the various foreclosure measures, please do not hesitate to contact our German law firm. Our enforcement practice group answers your questions comprehensively and shows you the advantages and disadvantages of each type.