After the house is mortgaged, does the mortgagee have the preemptive right to auction the house by the court?

Creditors can bid, but they have no preemptive right.

There are three kinds of people who have the preemptive right in real estate:

1. When a shareholder of a limited liability company transfers his capital contribution to a person other than the shareholder, it must be agreed by more than half of all shareholders;

Shareholders who do not agree to the transfer shall purchase the transferred capital contribution. If you don't buy the transferred capital contribution, it is deemed that you agree to the transfer.

Under the same conditions, other shareholders have the preemptive right to purchase the capital contribution transferred with the consent of shareholders.

2. Where the lessor sells the house, it shall notify the lessee 15 days in advance, and the lessee shall enjoy the preemptive right under the same conditions.

3. If * * someone disposes of his share, others * * * have the preemptive right.

Auction is a special form of buying and selling, but its nature is buying and selling, and the lessee cannot be deprived of the preemptive right. The lessor or auction house is still obliged to inform the lessee of the auction.

According to Article 16 of the Supreme Court's Provisions on Auction and Sale of Property in Civil Execution of People's Courts:

In the auction process, when the highest bid appears, the preemptive right holder can say that he will buy at the highest price; If there is no higher bid, it will be returned to the preemptive right holder;

If there is a higher bid, but the preemptive right holder does not express it, it will be auctioned to the bidder with the highest bid.

Extended data

Procedures for protecting preemptive right

According to the provisions of Articles 14 and 16 of the Auction Regulations, the following procedures must be followed to protect the preemptive right in the court's compulsory auction:

1, auction notice

The people's court shall, five days before the auction,

Notify the parties and known holders of security interests, preemptive rights or other priority persons to be present on the auction day (Article 14 of the auction regulations).

Since the holder of the preemptive right must exercise the preemptive right as a bidder,

Therefore, the auction announcement should specify the time and place of the auction, the reasons for the auction, the amount of the auction deposit, the time limit for paying the auction money, etc. So that the preemptive right holder can decide whether to participate in the bidding.

If the court does not know about the preemptive right holder, the court shall inform him of his right to participate in the bidding and the legal consequences of losing the preemptive right if he fails to register the bidding in the auction announcement.

The time of auction announcement is not limited by civil law. Article 1 18 of Mintong's opinion stipulates: "The lessor shall notify the lessee three months in advance when selling the leased house.

The lessee has the preemptive right under the same conditions; If the lessor fails to sell the house according to the provisions, the lessee may request the people's court to declare the sale of the house invalid. "

Article 230 of the Contract Law only requires notifying the preemptive right holder within a reasonable period before the sale.

It should be pointed out that in the judicial auction procedure, the people's court is not subject to the notice time limit stipulated by the civil law, nor is it subject to the notice time limit agreed by both parties.

As long as the auction announcement conforms to article 14 of the auction regulations.

2. Bidding registration, payment of bid bond and the day of auction.

The preemptive right holder shall, in accordance with the auction announcement or the requirements of the auction announcement, register and pay the bid bond like other bidders, and participate in the auction on the auction day.

Failing to register the bid and pay the bid bond according to the regulations shall be deemed as giving up the preemptive right. In addition, "if the preemptive right holder fails to show up after being notified, it shall be deemed as giving up the preemptive right" (Article 14 of the Auction Regulations).

3. The placard should be priced

When the highest bid price appears, the preemptive right holder raises the bid price before the auctioneer shouts three times.

And the highest price reaches above the reserve price of this auction, the auction price shall be used for the transaction with the preemptive right holder.

"If there is a higher bid, if the preemptive right holder does not make a statement, it will be returned to the bidder with the highest bid" (Article 16 of the Auction Regulations).

4. Multiple preemptive rights holders in the same order simultaneously express the treatment of purchase and acceptance.

If multiple preemptive rights holders in the same order express their acceptance at the same time, the judicial interpretation of auction stipulates that "the buyer is decided by drawing lots" (Article 16 of the Auction Regulations).

In practice, there is also a method to increase the price in the auction. Many preemptive rights are bidders, and the existing bid is the starting price, so that many preemptive rights can continue to bid, and the highest bidder wins. However, this practice is not adopted in the auction regulations.