What is Act No. 26 / 2000 Coll.?

Act No. 26 / 2000 Coll., on Public Auctions — Public auction law.

When it became Act No. 26 / 2000 Coll. effectiveness?

Act No. 26 / 2000 Coll. became effective 01.05.2000.

Is Act No. 26 / 2000 Coll. still valid?

Yes, Act No. 26 / 2000 Coll. is still valid and effective.

Act No. 26 / 2000 Coll. - Public auction law

26

THE LAW

of 18 January 2000

on public auctions

Parliament has decided on this law of the Czech Republic:

ČÁST PRVNÍ

COMMON PROVISIONS

§ 1

Subject matter

This law regulates public auctions and the creation, duration and termination of certain legal relations related thereto. According to this Act, the procedure is followed, unless specific legislation provides otherwise. 1)

§ 2

Definition of terms

For the purposes of this Act:

(a) the auction shall be a public act, the purpose of which is to transfer ownership or other right to the object of the auction, on the basis of a proposal from the applicant, in which the licitator turns to a pre-determined range of persons present at a pre-determined location, or in the context of a public data network at a designated address, with a call for tenders, and in which the person making the highest bid under the specified conditions passes by the licitator of ownership or other right to the object of the auction, or the same public conduct which was terminated by the licitator on the grounds that neither the lowest submission was made;

(b) by the appellant, the person who, under the conditions laid down by this law, proposes the auction;

(c) by an auction participant, the person present at the auction who has arrived or registered in the environment of the public data network at the designated address for the purpose of making submissions and fulfils the conditions laid down by this law;

(d) an auction guarantee to ensure the future commitments of the auction participants in a specified amount and form;

(e) the auctioneer is the person who organises the auction and has the appropriate authorisation (§ 6 (1)); if the property of the local authorities or the property of the State is the property of the State, the auctioneer and the local authority, the competent authority of the State or the Office for the Representation of the State in matters of property,

(f) by the licitator, the natural person authorised to act in the name and on behalf of the auctioneer;

(g) by invoking a declaration made by the licitator or by a data report by the licitator on the subject of the auction, the presentation of the lowest submission and the amount of the minimum bid, as well as the invitation to tender by the tenderers;

(h) the opening of the auction of a declaration by the licitator that the auction is open, unless otherwise specified,

(i) a tender by an auction tenderer made during the auction at least at the lowest bid; further submissions must exceed those already made by at least a fixed minimum bid, unless otherwise specified; where the numbers have been distributed, the tender shall be made orally and by the number being lifted; the submission is a perfect to oral offer, with the exception of an electronic auction where the tender of the participant is made by the delivery of the data message;

(j) by the act of the licitator, consisting of a click of the hammer or the act of the licitator in an electronic auction, consisting of the termination of the auction by ceasing the receipt of further tenders received by the data message and the subsequent publication of the information on the termination of the auction at the auction address and the distribution of the data report on the termination of the auction to all auction participants which, under the specified conditions, move the ownership or other right to the auction;

(k) the auctioneer of the auctioneer to whom the cover has been granted;

(l) the auction proceeds, the price obtained by auctioning and any accessories thereof,

(m) the cost of auctioning the remuneration of the auctioneer and the costs effectively incurred by the auctioneer for material and organisational security of preparation and conduct of the auction; the costs effectively incurred by the auctioneer include the reasonable costs of ensuring that the auction is informed, including information in the press, and the costs of publishing the auction order in a normal manner, as well as the costs incurred by the auctioneer to increase his insurance premiums for liability for damage, provided that, in view of the value of the auctioned item, an increase of more than 10% of the original premium was required;

(n) the failure to pay the price by the auctioneer within the prescribed time limit,

(o) the central address of the only place where the information specified by this Act or the information provided voluntarily by other auction participants is published in the publicly available information system (Internet),

(p) the administrator of the central address, the person organising, in return for payment, the publication of the information provided by this Act or the information provided voluntarily by other auction participants;

(q) by a data message, electronic data that can be transmitted by means of electronic communication and stored on recording media used in the processing and transmission of data by electronic means.

§ 2a

(1) Negotiations during the organisation and during auctions are always held in the Czech language. Documents must be drawn up in the Czech language, otherwise they shall not be taken into account. This is without prejudice to the right to submit a document in a language other than the Czech language together with the official translation of the document into the Czech language.

(2) An auction participant may make submissions during an auction even in a foreign language which will be translated into the Czech language by an interpreter to whom he will obtain at his own expense, provided that he notifies the auctioneer in writing at the latest on his entry on the list of auction participants.

§ 3

Auction Participants

(1) An auction participant may always be a State, even if another person is excluded from the auction.

(2) Auction participants may not be refused the persons who are unable to acquire ownership and rights of the auctions2), persons whose assets have been declared bankrupt or insolvency proceedings for the assets of such a person have been rejected because their assets are not sufficient to cover the costs of insolvency proceedings for a period of 3 years from the legal authority of such a decision; No one must bid for them.

(3) Auction participants may not be persons who, as a result of the acquisition of ownership of the object of the auction, could be excluded, restricted or distorted by competition; (3) no one may bid for it.

(4) Auction participants shall not be persons who have not lodged an auction guarantee, if requested, and in a repeated auction or an auctioneer who has prevented the previous auction of the same auction subject to the same auctioneer; No one must bid for them. It shall not be auctioned by the employees of the relevant trade office and by the auctioning authorised by the employees of the Ministry of Local Development (hereinafter referred to as "the Ministry '). No one must bid for them.

(5) The auction participants shall not be the auctioneer organising and performing such an auction, the person who is its statutory authority or a member of its statutory or other body, its staff, the auctioneer who acts as an auctioneer in such an auction, and the liquidator, the forced administrator, the temporary administrator or the person responsible for managing the crisis under the law governing the recovery procedures and the resolution of the financial market, if they are the promoters of such an auction; No one must bid for them.

(6) The auction participant shall also not be a person who, in relation to one of the persons referred to in paragraph 5, is close to (3a), a partner, a person controlled or a person forming a group with him; No one must bid for them.

(7) Where the nature of the auction object does not preclude this, the joint participation of several auction participants shall be permitted for the purpose of the joint acquisition of the auction object. The condition for joint participation in the auction is that, before the joint participants are included in the list of the auction participants, a declaration of honour shall be submitted to the auctioneer of all joint auction participants, which shall include the determination of future shares in the auctioned auction item and the authorisation of the person authorised by the joint auction participants to represent the auction and shall be accompanied by the officially certified signatures of all joint auction participants. With the exception of the designation of the person authorised to represent the common participants in the auction, no restriction contained in the auction participants' declarations or resulting from their possible agreement against the auctioneer or third parties shall be effective. Joint auction participants shall be jointly and severally liable for the payment of the auction price.

§ 4

Representation

The auction participant may be represented in the auction by a representative on the basis of a written mandate with an officially certified signature; a procuring entity may act as an auction participant.

§ 5

Exclusion of certain items and rights from auctions

(1) Under that law, cases and rights cannot be auctioned which cannot be dealt with, unless otherwise provided for by that law, by a enforceable decision of a court or a public authority.

(2) The provisions of this Act shall apply mutatis mutandis to the auctioning of securities, unless the special legislation governing the capital market business provides otherwise.

§ 6

Special conditions for the operation of the auctioneer's business

(1) An auctioneer may be a natural person registered in a commercial register, a trading company or a cooperative who fulfils the conditions laid down by this law and has been granted the right to practice business. In order to issue an auction concession under this Act, the competent trade office shall seek the opinion of the Ministry. Without the opinion of the Ministry, in which the Ministry states that the auctioneer has the capacity to carry out the auction and related activities, the business office may not issue the concession. In its opinion, the Ministry shall assess the assumptions of the auctioneer to carry out the auction activity and activities related to the application of the applicable legislation, guarantees of protection of the interests of the appellant, the owner of the auction object, the participants in the auction and other persons having rights to the auction subject also on the basis of the auctioning, the auctioneer drawn up by the basic rules of the auctioneer's conduct in the performance of the auction activity and related activities. A person established in the territory of a Member State of the European Union, of another State constituting the European Economic Area and of the Swiss Confederation, who demonstrates that, under the legislation of a Member State of the European Union, of another State constituting the European Economic Area or of the Swiss Confederation, he is entitled to carry out similar activities of an auctioneer in the territory of the Czech Republic only on a voluntary basis. That person must have his liability for any damage which might arise in connection with the auctioneer's activity before the activity begins; that person is not subject to other special conditions for the conduct of the auctioneer's business.

(2) The auctioneer shall, within 30 days of the award of the concession, conclude a contract of insurance of his liability for damage which could arise in connection with the auctioneer's activity.

(3) In addition to the requirements referred to in paragraphs 1 and 2, the auctioneer carrying out involuntary auctions shall fulfil the following conditions:

(a) if he is a legal person, his capital or registered capital must be at least CZK 5 000 000 000 and must be fully repaid,

(b) its obligation under paragraph 2 must be fulfilled in such a way that the amount of the claims is at least CZK 35 000 000; and

(c) it is required to have its accounts audited by the auditor in accordance with the special legislature4a).

(4) If the appellant is the trustee of bankruptcy, he may not participate in the auction as an auctioneer. Where the appellant is an insolvency administrator who is a legal person, the auction shall not be carried out by an auctioneer who, in relation to the appellant, is a member of the group, a person forming a group with him, his statutory body or a member of his statutory or other body or of his staff, or an auctioneer of whom the appellant is a member. Where the appellant is a bankruptcy administrator who is a natural person, the auction shall not be carried out by an auctioneer who is close to the appellant or by his staff, or by an auctioneer to whom the appellant is a member, a statutory body or a member of his statutory or other body or an employee.

(5) Where an auctioneer infringes an obligation to waive an auction, even if he was obliged to do so, or one of the obligations referred to in paragraphs 2 to 4, such breach shall be considered a serious breach of obligations under the Trade Code. 5)

(6) Auctionaries - local authorities, public authorities and the Office for the Representation of the State in property matters - are not subject to special conditions for the operation of the auctioneer's activities.

§ 7

Control of compliance with the conditions for the organisation and implementation of auctions under this Act shall be carried out by the Ministry, which shall monitor whether and how the auctioneer fulfils the obligations imposed by this Act. The Trade Union Office shall immediately send a final decision on the award of the concession or the cancellation of the concession to the Ministry; The Ministry shall publish at the central address details of the auctioneer to the extent published by the trade unions in the trade register. 6)

§ 8

Licitor

(1) Only a natural person who is competent and physically fit for such activities may be a provider.

(2) The auctioneer commences the auction, calls on participants to make submissions, to give a triplicate and also to draw lots for the award of the case.

§ 9

Archiving obligation

(1) The auctioneer is obliged to keep a proper file record and to ensure the effective and secure deposit of documents relating to the auction. It shall also ensure the deposit of documents of the undertaking where it is the subject of an auction, in accordance with specific legislation.

(2) The auctioneer shall be obliged to allow access to the archived documents referred to in paragraph 1 to an auction participant in the event of an auction involving that participant, and to the employees of the business office responsible for controlling the business activity, the employees of the Ministry responsible for controlling the execution of the auctions and the tax administrator in tax proceedings.

§ 10

Sending and service of documents and sending of cash

(1) Documents shall be sent by post in the form of a letter of delivery delivered to their own hands with delivery; they may also be handed over in other demonstrable ways to the person who is designated.

(2) Cash amounts shall be made up in cash or sent by post in the form of a cash consignment delivered to their own hands, by transfer from an account with a bank or savings and credit cooperative or other non-cash means; they may also be transmitted in other demonstrable ways to the hands of the person who is designated. The auctioneer may also accept payment by cheque or credit card.

§ 11

Designation of persons and goods

Persons and goods shall be identified in a manner excluding their replacement.

§ 12

Additional conditions for the auction procedure

(1) The place, date and time of the auction shall be determined in such a way as not to restrict the possibility of participating in the auction.

(2) The manner in which the price is to be paid, the terms of the award of the auction and the minimum bid must be determined taking into account the particularities and value of the auction; may not be set to restrict interest in participating in the auction.

(3) The auctioneer shall be obliged to complete the documents sent by the data or documents provided for in the specific provisions following the request of the cadastral office or central address administrator.

(4) The publication in a local manner of the auctions of real estate shall be the publication on the official record of the municipal office, office of the city district or district in whose district the property is located. An auction order shall also be deemed to be published in the usual place if the auctioneer delivers to those authorities an auction order with an application for publication on the official plate and at the same time in the periodical printing for the territory of the local authority in whose territory the property is situated, at least the basic details of the auction object, the place and time of the auction, the lowest submission, the amount of the minimum bid and the estimated or determined price, as well as an indication of where the complete text of the auction order can be read.

(5) Auction participants and others present at auction are obliged not to interrupt the auction process by acting contrary to good manners.

(6) Any person who has paid the admission fee may be present at the auction. Admission for one auction day is maximum 100 CZK per person per day. The selected admission fee is part of the auction proceeds.

§ 13

Estimated price of the auction object

(1) The auctioneer shall ensure an estimate of the price of the auction at the place and time of the usual auction. The estimate shall not be more than six months old on the auction day. If the property, undertaking, (7) its organisational component, (8) or a case declared a cultural monument, (9) the price of the auction shall be determined by an expert's opinion. 10) The expert shall also estimate defects that do not disappear as a result of the transfer of ownership and shall adjust the price estimate accordingly.

(2) The person holding the object of the auction is required, after the previous call, at the time specified in that invitation, to allow the estimation to be carried out and the examination of the subject of the auction. The duration of the inspection shall be determined in the invitation taking into account the nature of the auctioned item, as a rule, for the property three weeks after the dispatch of the call.

(3) Where the person holding the auction object does not allow an estimate or inspection of the auction object to be made, the estimate may be made on the basis of the available information available to the auctioneer.

§ 14

Auction security

(1) The auctioneer is entitled to apply for an auction security after the auction participant.

(2) An auction participant is obliged to lodge an auction security in cash or in the form of a bank guarantee to the auctioneer within the time limit specified in the auction order; the auctioneholder is obliged to allow both of these methods, but cash payment only up to the limit laid down in the Cash Restriction Act 10b). If the auction decree so provides, the guarantee instrument must be issued by a bank having its registered office in the Czech Republic or by a foreign bank authorised to operate in accordance with special legislation10a) in the Czech Republic. The auction order may also provide for a minimum period of validity of the bank guarantee as a condition of acceptance, but not exceeding 160 days from the date of the auction covered by the bank guarantee.

(3) An auction security shall be lodged within a reasonable period of time for the auction participant, which shall not be less than half the time limit laid down for the publication of the auction order. In an auction order, the end of the period for the lodging of the auction security in cash at the hands of the auctioneer or in the form of a bank guarantee may be fixed at a specified time prior to the start of the auction, but not before the 16th hour of the working day immediately preceding the auction. Unless otherwise specified in the Auction Order, the time limit for lodging the Auction Guarantee shall end with the start of the auction.

(4) The auction security may not exceed 30% of the lowest submission; it must not exceed CZK 1 500 000 plus 10% of the amount exceeding CZK 5 000 000.

§ 15

Tour of the auction object

(1) Before the auction starts, the auction participants must be allowed to inspect the auction subject within the time limit specified in the auction order. The date of the auction examination shall be determined by the auctioneer taking into account the place of storage of the movable item or the location of the immovable item.

(2) If the lowest submission exceeds CZK 1 000 000 or if the property, the firm or its organisational component is involved, the auction participants must be allowed to inspect the auction subject of the auction at least two times specified in the auction order, which may not be fixed on the same day.

(3) Additional conditions may not be associated with the examination of the subject of the auction, except for proof of identity; This does not apply to the conditions relating to the protection of life and health and to the conditions arising from the statutory obligation of confidentiality, the obligations laid down by special legislation11) or the maintenance of commercial secrecy.

(4) If the owner or person who holds or rents the object of the auction does not allow a proper inspection of the object of the auction, the inspection shall be carried out as far as possible. For this reason, the annulment of the auction cannot be declared.

§ 16

Repayment of the auction guarantee and documents

(1) Where the auction security has been lodged on an account, the auctioneer shall return to the auction participant who has not auctioned the auction item the auction security lodged, including the accessories, without undue delay after the auction has ended.

(2) If the auction security has not been lodged on the account, the auctioneer shall return the auction participant who did not auction the auction item to the auctioneer without undue delay after the auction has been concluded.

(3) A bank guarantee submitted by an auction participant which has not auctioned the object of the auction must be returned to the auction participant without undue delay.

(4) The instrument by which the beneficiaries have demonstrated their rights to the object of the auction or the establishment of claims shall be returned by the auctioneer to those persons without undue delay after the auction has ended; However, if the auction does not end with the award of the instrument, the auctioneer shall return the documents to those beneficiaries without undue delay after the time limit for the submission of the application for the re-auction or after the re-auction has expired.

(5) In the event of the abandonment of the auction, the auctioneer shall return the auction security lodged without undue delay after the abandonment of the auction.

§ 16a

Electronic auctions

(1) The auction may also be carried out electronically.

(2) The electronic auction takes place at an address on a public data network where a transfer of ownership or other rights is carried out through technical equipment or software, the auctioneer is obliged to ensure a clearly identifiable transmission of data messages from the auction participants.

(3) In electronic auctions, the auctioneer shall also provide for:

(a) the way in which the auctioneer is registered;

(b) the method of electronic auction;

(c) the opening and termination time of the electronic auction during which the submission may be increased;

(d) the method of determining the auctioneer in the case of § 23 (10), § 47 (10) and § 47 (11) third sentence;

(e) the date of application of the pre-purchase right and the method of communication of the decision as to whether the pre-purchase right is established.

(4) The terms of the electronic auction procedure are laid down by the Ministry by decree.

ČÁST DRUHÁ

ADJUSTMENT

§ 17

Specific provisions

(1) A voluntary auction is an auction carried out on the basis of the owner's proposal. The proposal may also be made by several persons, even if they are not co-owners of the object of the auction.

(2) Voluntary auctions of movable goods under this Act may be carried out on the basis of a trade licence issued; special conditions for the operation of the auctioneer shall not apply to the conduct of voluntary auctions of movable goods.

(3) The object of the auction may be the case, the undertaking (7) or part thereof, or any other item of mass, a set of items, an apartment or a non-residential space owned under special legislation11a) and a transferable property right, provided that their auctioning has been proposed and that they fulfil the conditions laid down by that law.

(4) The owner shall also be the person who is entitled to manage the auction and is empowered by the owner or, by virtue of a special law, to dispose of the auction, liquidator and insolvency administrator.

(5) Articles of cultural value in the field of archeology and objects of cultural value of sacral and cult nature can only be auctioned if they are certified for permanent export 11b). Cases on which the State's legal right to buy-in under the special legislation12), the statutory right to buy-in of co-owners, and apartments and non-residential premises with which the use of the lease is limited by the right of the lessee to have preferential ownership or the statutory right to buy-in of tenants under the special legislature13) may be auctioned only if each person authorised to carry out the auction gives his consent by means of a written declaration bearing its officially certified signature and submitted to the auctioneer at the latest before the signature of the auction decree. Such consent may be subject to the condition that the lowest submission is not less than the price indicated in the consent. Even without such consent, the auction shall be admissible if, on the basis of a proposal from the administrator of the bankruptcy proceedings, the administrator of the bankruptcy proceedings has in writing called upon the person entitled to use his or her pre-purchase right or the right to the priority acquisition of the auction and that right has not been used in due time. Where an auction is carried out pursuant to this paragraph, it shall not be permitted to set the lowest bid below the price, as specified in any of the agreements granted by authorised persons, to reduce the lowest bid or to hold a repeated bid; However, the rights under Paragraph 23 (11) are not affected.

(6) The transfer of ownership to and from apartments and non-residential premises to the auctioneer on the basis of an auction conducted pursuant to paragraph 5 shall cease to be a pre-purchase right of the tenants to them, as well as their right to a preferential acquisition of ownership to those apartments and non-residential premises, if they have not already been terminated earlier. Housing in buildings owned or co-owned by cooperatives for the construction of which financial, credit and other assistance has been granted under special legislation13a), where the cooperative has been obliged to conclude a contract for the transfer of an apartment with a natural person by a member of the cooperative which, under special legislature13b) has called upon the cooperative to conclude a contract for the transfer of that apartment, cannot be auctioned.

(7) The auction may not be auctioned on a voluntary basis on immovable property the ownership of which is restricted by the right of pre-sale registered in the register of immovable property and movable property the property of which is restricted by the right of pre-sale registered in certificates of ownership and necessary for the handling of cases. This shall not apply if each person authorised to carry out an auction has given his consent by means of a written declaration bearing his officially certified signature and submitted to the auctioneer at the latest before the signing of the auction order. Even without such consent, the auction shall be admissible if bankruptcy is carried out on a proposal from the administrator. Where an auction is conducted with the consent of authorised persons, it shall not be permitted to set the lowest submission below the price, as specified in any of the agreements thus granted, to reduce the lowest submission or to hold a repeated auction; However, the rights under Paragraph 23 (11) are not affected. The transfer of ownership to the auction object to the auctioneer shall cease to be the pre-purchase rights referred to in the first sentence.

(8) Matters against which the right of detention has been exercised cannot be auctioned.

(9) Where the right to property, business or its organisational component is related to transferable property rights, it shall be treated in a similar manner to the auction of the property, the undertaking or its organisational component; in other cases, shall be treated as auctioning of movable goods.

§ 18

Amount of the auctioneer's remuneration

(1) The amount of the auctioneer's remuneration is negotiated by agreement.

(2) The auctioneer shall be entitled to collect the remuneration for the auction from the appellant and, in the case of the auctions of movable goods, from the auctioneer. The amount of the remuneration levied on the appellant or the way in which it is determined or agreed that the auction will be made free of charge to the appellant shall be negotiated in the auction contract. The amount of remuneration collected from the auctioneer or the manner in which it is determined, its maturity or the arrangement that the auction will be made free of charge for the auctioneer shall be indicated in the auction order.

(3) If the appellant is an insolvency administrator, the price of the auctioneer's remuneration may not exceed 10% of the price obtained by the auction, but not more than CZK 1 000 000 increased by 1% of the price obtained by the auction exceeding CZK 10 000 000.

§ 19

Auction contract

(1) The auction may be carried out only on the basis of a written auction contract concluded by the appellant with the auctioneer. This shall not apply if the assets of the State are the auctioneer's public authority and the Office for the Representation of the State in matters of property, or if the assets of the local self-governing body are the auctioneer's, or the auctioneer's.

(2) The auction contract must indicate that the auction is voluntary, the designation of the applicant, the auctioneer and the subject of the auction, the lowest submission, the time limit for payment of the price obtained by auctioning in excess of CZK 500 000, the amount of the remuneration or the method of determining it or the arrangement that the auction will be made to the appellant free of charge. Where there is a contract to conduct an auction with an auctioneer jointly by several applicants who are not co-owners of an auction object, the contract governing their relationship with the auction and its results shall be annexed to the contract.

(3) Where the licitator is entitled to reduce the lowest submission, the auction contract shall include an arrangement by which the lowest submission can be reduced.

(4) Where there is an auction of a property, an undertaking or an organisational component thereof, the signatures of the applicant and the auctioneer in the auction contract shall be officially verified.

(5) If the promoter of the auction is a person who is obliged to comply with a specific law in the award of contracts, 14) his procedure for concluding the auction contract shall be governed by that law; the future cash obligation of the contract is the estimated cost of the auction.

(6) The amount of the auctioneer's remuneration agreed in the auction contract cannot be increased further.

(7) If the contract concluded between the appellant and the auctioneer does not contain the formalities laid down, it shall be void.

§ 20

Auction Order

(1) The auctioneer shall declare the auction operation by means of an auction order indicating:

(a) that the auction is voluntary and, if the auction is repeated, that fact;

(b) the name of the auctioneer;

(c) the place, date and time of the auction;

(d) a description and description of the subject-matter of the auction and its accessories, rights and obligations relating to the subject-matter of the auction, where they substantially affect the value of the object of the auction, a description of the situation in which the subject-matter of the auction is situated, its estimated or identified price and, where the auction is the subject of a cultural monument, the fact thereof;

(e) the lowest submission and the minimum bid that the auction participant may make,

(f) when the lodging of an auction guarantee is required, the method and time limit for the lodging of the auction security, the account number and the address of the place where the auction security is to be lodged, the proof of the lodging of the auction guarantee, the amount of the auction security and the method of its return; where appropriate, if the auction guarantee can be lodged by credit card or check,

(g) the method of payment of the price obtained by auctioning,

(h) the date and time of the inspection of the subject-matter of the auction, the place of the inspection and the organisational arrangements to ensure the inspection,

(i) in the case of a joint auction, the order in which the individual auction items are auctioned;

(j) the terms and conditions for the surrender of the auction object to the auctioneer;

(k) a statement, if any, that the details of the auction object in the auction order or part thereof, in particular a description of the auction object's state of play and of the rights and obligations relating to the auction object binding, are given only according to the information available, or that the applicant guarantees the auction object's characteristics or is responsible for its defects to the extent provided for by the auction order;

(l) the time limit for paying the price obtained by auctioning in excess of CZK 500,000,

(m) the amount of remuneration levied on the auctioneer or the method of determining the auctioneer, its maturity or the arrangement that the auction will be made free of charge for the auctioneer.

(2) The auction order shall be published by the auctioneer in a manner consistent with the object of the auction at a place normally not less than 15 days before the start of the auction, unless otherwise specified.

(3) If the property, business or organisational component of the auction is the subject of an auction, or if the lowest submission exceeds CZK 100,000, the auctioneer shall publish the auction decree in the manner of the auction subject, both at the usual place and at the central address, at least 30 days before the auction starts.

(4) The auctioneer shall be entitled to shorten the time limit for the publication of the auction order accordingly for the subject-matter of the auction.

(5) Within the time limits referred to in paragraphs 2 to 4, the auctioneer shall send an auction order:

(a) the owner,

(b) persons who have the right to the subject-matter of an auction registered in the property register or in instruments certifying the ownership of the subject-matter of the auction necessary to deal with it;

(c) where the property, the undertaking or its organisational component is the subject of an auction, the tax administrator responsible for the place of permanent residence or the place of business of the appellant, if the appellant is a natural person or according to the address of the appellant, if the appellant is a legal person, and the tax administrator in whose territory the property, undertaking or its organisational component is situated;

(d) if the undertaking or its organisational component is involved, the competition authority;

(e) if the property of a legal person whose founder, founder, member or member is a State, is also an authority of the State exercising the right of the founder, founder, member or member of that legal person.

(6) The auction order, together with all its additions, shall be published by the auctioneer in the publicly available part of the building in which the auction takes place before the auction begins.

(7) The same copy of the auction order deposited with the auctioneer must be signed by the appellant; if the property is concerned, the signature of the appellant must be officially certified.

§ 21

The conditions and particulars given by the auctioneer in the auction order cannot be amended further. This shall not apply where there are changes in the scope of the rights and obligations of the auction subject to and associated with the auction, or the state in which the auction object is located; in that case, the auctioneer shall draw up and add an amendment to the published auction order without undue delay after having become aware of the changes.

§ 22

Abandonment of the auction

(1) The auctioneer shall refrain from the auction at the latest until the auction is opened

(a) upon written request by the owner,

(b) if it is demonstrated to the auctioneer that the appellant is not entitled to propose the auction,

(c) where the auction contract is invalid, the auction contract is withdrawn or the auction contract cannot be concluded under the terms of the auction contract;

(d) if the conditions laid down in paragraphs 15 and 21 are not met,

(e) where insolvency proceedings have been initiated, or where the object of the auction or part thereof has been included in the assets under special law 14a), unless the appellant is the insolvency administrator;

(f) where enforcement has been ordered by a court or public authority to sell the object of the auction or part of it, or an execution order has been issued by a court executive to sell the object of the auction or part thereof, unless the appellant is a court or court executor in proceedings under special legislation14b);

(g) where there has been a conflict between a voluntary auction and an involuntary auction (§ 42),

(h) where an enforceable decision by a court or authority has been prohibited from dealing with the subject of the auction,

(i) if his trade licence of the auctioneer ceases to exist.

(2) Where the auctioneer is a public authority, the Office for the Representation of the State in matters of property or territorial autonomy, the obligations referred to in paragraph 1 (a) to (c) and (i) shall not apply.

(3) The auctioneer shall inform the person referred to in Article 20 (5) in writing of the abandonment and of the reasons for the abandonment of the auction without undue delay. If the auction order has been published at the central address, the auctioneer shall also publish an auction notice.

§ 23

The auction process

(1) Access to the premises in which the auction is to take place must be granted at least 30 minutes before the auction starts to take place to the participants in the auction, to the staff of the relevant trade office and to the staff of the Ministry responsible for controlling the conduct of the auction.

(2) The auction participants shall be required to provide proof of their identity or, where appropriate, their authorisation to act for the auction participant, to be included in the list of auction participants and, where auction numbers are distributed, to assume the auction number; Where an auction security has been required, the auction participants shall be obliged to provide proof of the auction security in the manner laid down in the auction order. The auction participants shall also be required to provide proof of their affidavit that they are not persons excluded from the auction. The staff of the competent trade office and the staff of the Ministry authorised to check the conduct of the auction shall also be demonstrated by their delegation.

(3) Except for the conditions laid down in this Act or in the specific legislation referred to therein, the participants in the auction or the employees of the relevant trade office and the employees of the Ministry responsible for controlling the conduct of the auction may not be required to fulfil any further conditions.

(4) The public must be allowed access to the premises where the auction takes place at least 10 minutes before the auction starts.

(5) Any person who appears to enter the auction before the auction starts and proves that he fulfils the conditions to become an auction participant must be allowed to bid.

Citation	Act No. 26 / 2000 Coll., on Public Auctions
Regulation Type	-
Author	-
Collection	Code of Laws

Date of Promulgation	22.02.2000
Effective from	01.05.2000
Effective until	-
Status	Valid

Act No. 26 / 2000 Coll.

Public auction law

Contents