Are you a debtor under enforcement proceedings? Information on challenging the real estate auction valuation

As a debtor undergoing enforcement proceedings, one of the most vulnerable situations is when your property is subject to enforcement.

It may happen that the assessed value determined by the executor and the real market value differ, which could mean a serious financial loss for you.

It is important to know: the law provides you with a means to challenge the assessed value of the property.

Name of the instrument: enforcement objection.

If you disagree with the estimated value, you have the opportunity to submit an objection to enforcement within fifteen days of its notification.

This step is crucial because in the event of an objection, the decision-making power is removed from the hands of the executor: from now on, the court will determine the estimated value.

What are the costs of the process?

Going to court is not free and certain costs must be paid:

- Procedural fee: A fee is required for filing an objection to enforcement. The procedural fee is currently HUF 15,000, which must be paid to the account of the competent court.
- Expert fee advance: The court will appoint a forensic expert to determine the exact value. You must pay the fee in advance and attach proof of payment to the objection.

The amount of the advance payment is calculated as follows:

- for an estimated value below HUF 10,000,000: 0.75% of the estimated value,
- For an estimated value of HUF 10,000,000 or more: HUF 75,000 + 0.25% of the part above HUF 10,000,000.

Important limit: the advance payment amount must be at least HUF 20,000, but not more than HUF 300,000.

Is there a possibility of being exempted from the advance payment?

In many cases, the debtor is unable to raise the expert's fee precisely because of his payment difficulties. The only legal loophole from the advance payment is the cost discount. However, it is important to know that this discount is not granted automatically:

1.) A separate request must be made: It is not enough to indicate it in the objection, a separate request is required.

2.) You need to justify: You need to justify why you need help.

3.) You must prove your need: You must prove your need with documents supporting your financial situation (e.g. income certificates, proof of expenses).

Do you have questions about the enforcement procedure?

The enforcement objection and the request for cost relief are subject to strict formal and content requirements. An incorrect or incomplete submission can cause significant problems. Click here for a legal consultation, and let's examine together how you can protect your interests in the enforcement procedure as effectively as possible.