A sale conducted under the supervision and guidance of courts in execution of decrees is called Auction Sale. The following conditions should be met
- The owner of the immovable property suffers a money decree
- The property of the owner is attached and sold by an order of the court
- The proceeds of the sale are adjusted towards the satisfaction of decree
In an auction sale, the court acts as the original owner of the property and the representative of the court signs the sale deed on behalf of the original owner. The buyer in the auction would on execution of the document get all rights, titles, and interest that the owner had in the immovable property.
Earnest Money
Earnest money is part of the purchase consideration where the transaction goes forward. Earnest Money or deposit serves two purposes
- Part payment of the purchase price, and
- Security for the performance of the contract.