As part of the foreclosure procedureThird parties to the procedure must be informed that an auction is to take place.
The tenant or occupier acting in good faith
Tenants and bona fide occupants must be informed of the auction at least 1 month before it takes place.
Failing this, he may take the place of the successful bidder within one month of the date on which he discovers the award.
However, this option is reserved for the first tenant who comes after the initial division of the building. In practical terms, this means that the right of substitution is only available to the first tenant to move in after the co-ownership has been created.
This rule stems from the Court of Cassation's very restrictive reading of the applicable texts (Cass. 3rd civ., 26 Nov. 2013, no. 12-25.412, Bull. 2013, III, no. 151).
The lessee under a rural lease
The pursuing creditor's lawyer must inform the auction registry of the presence of a rural leaseholder.
The registry then informs the lessee at least 20 days before the sale, by registered letter or recorded delivery.
Land development and rural establishment companies (SAFER)
The SAFERs have a right of pre-emption. The clerk's office informs them of the sale at least 20 days before it takes place, again by registered letter or recorded delivery.
Public authorities
Like the SAFERs, local authorities have a right of pre-emption. The clerk's office must send them a declaration of intent to sell (DIA) at least 30 days before the sale, by registered letter or recorded delivery.
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