On 6 January 2012, the Code of Civil Procedure was amended in accordance with statute effective on April 28, 2011(Journal of Laws No 138, pos. 807). The amendment introduced an internet notice requirement for auctions of real property seized in the course of enforcement proceedings. The concept of this amendment was first proposed in the previous Parliamentary term by the “Friendly State” Special Commission. Members of Parliament contended that requiring new forms of public notice in foreclosure auctions will have a “positive economic effect”.
In Poland seizures and auctions of real property are conducted by nationally registered bailiffs. Until now, under the provisions of the Article 955 § 1 of the Code of Civil Procedure the bailiff was required to give public notice of real estate auctions in three forms: in the court building (on the bulletin board), in the local municipal building and in a widely read local news publication. The amendment added the requirement to post auction notices on the National Council of Bailiffs website. The amendment did not change the requirement that notices need to be posted at least two weeks prior to the date of auction.
It is of noteworthy mention that bailiffs have operated a website on which notice of planned auctions has been voluntarily given since 2008. In light of the new notice requirement the National Council of Bailiffs has created an official website – auction announcements (www.licytacje.komornik.pl). The new website contains notices and information about all real estate auctions conducted by bailiffs in Poland. Although it is not statutorily required, the new page also posts notices and information about auctions of seized personal property. This website is integrated with the systems supporting the operation of bailiffs’ offices and allows bailiffs to post, update, and delete the auctions notices. Access to the site is free to all interested parties.
The purpose of this website is to inform the widest possible circle of people potentially interested in acquiring the goods to be auctioned. Consequently, this is intended to increase sales of seized goods, obtain the highest possible prices and most importantly, fully satisfy creditors’ claims. Until now, sales of real property through auctions have been usually ineffective. The National Council of Bailiffs reported that in 2011 approximately 100 thousand properties were seized of which only 3,7 thousand were sold. The internet posting requirement is about to facilitate faster fiscal execution of pecuniary claims.
The bailiff community has also reacted favorably to this amendment. “This broadens the circle of persons who will receive notice. The Internet is a very sound medium and becoming more common” – heard the Polish Press Agency from Krzysztof Dolny, the vice-president of National Council of Bailiffs.
Currently, bailiffs’ auctions are held orally in public with the personal presence of all bidders and under the supervision and with the presence of a judge. The Ministry of Justice’s Civil Law Codification Commission has already prepared a proposal to amend the Code of Civil Procedure and allow future auctions to take place electronically on the Internet.