Use the house to pay off the debt after the auction.
As the lawyer of the person subject to execution, we apply to execute the property of the person subject to execution. After entering the compulsory execution procedure, the plan and practice of using the house to pay off the debt twice...
This article talks about an execution case that our team is handling. It omits the information of the parties and only talks about it. outline. The general situation is as follows: As the lawyer of the person subject to execution, we apply for the execution of the property of the person subject to execution. After entering the enforcement procedure, there was an auction first and then another auction; the second auction failed again. In the past two years, the real estate market has been in a downturn, and it is understandable that normal properties are difficult to sell, let alone properties known as "drug list" in the industry. But from litigation to execution, we cannot just watch as the debt cannot be recovered. So, we went to communicate with the client and hoped to accept using the house to pay off the debt.
Our clients are state-owned enterprises, and they have their own considerations: the property of the person subject to execution is still mortgaged and repayments are still being made normally, so the bank as the mortgagee has not moved for the time being; but we, as the first If the signatory and executor want to pay off the debt in kind, they need to use part of the money to cancel the mortgage and bear taxes. You know, for state-owned enterprises, "How can we not recover external debts, and we need to use part of the money to fill the hole?""
After investigation as a lawyer handling the case, I learned that the person subject to execution has no other funds for the time being. Litigation cases have been restricted for high consumption. The other party wants to settle it as soon as possible and has a peaceful mind. There is nothing complicated about the legal relationship in this case. If the executor of the application is a private company, it is very simple. , after paying off the debt and then selling it on the market, we can recover most of the debt. It is impossible to pay off the debt with the house. The court said that if the sale fails, we will not be able to use the house to pay off the debt. The person subject to execution is unwilling to use the house to pay off the debt. If the person subject to execution makes a request, they can unblock the house, so it is recommended to suspend the sale process first, keep the property in a state of continuous sealing, and find other ways to solve the problem. After the court has communicated the details, we plan to work from both ends: on the one hand, we will talk to the person subject to execution. The mentality of the person subject to execution is that as long as I don’t pay more, you can take the house away and lift the restrictions as soon as possible. On the one hand, continue to find a job with a state-owned enterprise: Although the ruling cannot directly use the house to offset the debt of a third party (even if all parties agree, because there is a suspicion of breaking the purchase limit through judicial procedures), if there is a third-party buyer in the market Or if the state-owned enterprise arranges for it, after reaching a tripartite agreement, the court can directly unblock it and transfer it to a third party. What if the person subject to execution breaks his promise and refuses to cooperate?
Of course, this plan still requires a sum of money to fill this small hole first. Regardless of whether the money is real transaction funds or bridge funds, the mortgage needs to be released before the on-site transfer to a third party can be completed. If possible. Another advantage of reaching a three-party agreement is that it will be difficult for the Shenzhen court to let him go to other places to clear the house. If an agreement can be reached, after confirming the current situation of the house, he will change the key and temporarily keep it in the execution judge's office until the transfer is completed. Then hand it over to the new owner. Do not have a "tenant" suddenly appear in the house, or hold a long-term lease.
As for the court: temporarily suspend the sale, even if it is not resolved through the above ten thousand methods, According to relevant regulations and judicial precedents, when the market situation does change significantly, the auction process can be temporarily put on hold until the wind comes. In addition, there is also the issue of taxation and judicial interpretation of the tax burden on the person subject to execution. There is no detailed provision, although according to legal principles, the tax should be borne by the debtor/executor, but in this case and similar cases, if the person subject to execution does not (take) the money, it will be in vain for the transfer of ownership. In fact, it is borne by the person applying for execution or the third-party buyer.
According to the Supreme Court’s precedent - (2017) Supreme Court No. 324, the court’s debt settlement ruling clearly stated that “the above-mentioned debt settlement property is transferred. If taxes and fees are required to be borne by both parties respectively in accordance with the law, the effective documents shall apply. "According to the Jiangsu Provincial Higher People's Court - (2016) Su Zhifu Case No. 154, "If the debt settlement judgment does not specify the tax burden, the relevant taxes should be paid by the statutory taxpayer in accordance with the law, not by the person applying for execution.
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Finally, why bother? Because the debts of state-owned enterprises always have to be recovered, and the third parties involved in the transaction also want to get the property at a bargain price.
If you follow the procedures, there will always be a house. As the property to be executed, there is finally some hope compared to the execution of the equity of a small company or the person subject to execution having no property. But in the final analysis, the property to be auctioned must be liquid, which means it must be of high quality and cheap enough. , otherwise why would others go into this muddy water?