What Will I Have Left From a Property Auction? Example Budget of Costs and Debts
Published 4 November 2026
From a property auction, the debtor receives only what remains from the highest bid after paying the costs of the proceedings and all registered creditor claims according to the distribution schedule. This is often significantly less than people expect, and sometimes nothing at all. Below you will find the calculation procedure using a sample budget, with no made-up figures, because actual amounts depend on each individual case.
Summary
- Net proceeds = highest bid minus costs of proceedings minus creditor claims according to priority order.
- The minimum bid is two-thirds of the final price (§ 336e of the Czech Civil Procedure Code), so the price may be lower than market value.
- For the debtor, an auction is typically the most expensive option; proceeds cover costs and creditors first.
- If proceeds don't cover the debt, the unpaid portion remains and proceedings may continue in other ways.
- You can compare auction and pre-auction sale options using the calculator on this website.
How net proceeds are calculated
The net proceeds are the difference between the price at which the highest bidder purchases the property and the sum of all costs and creditor claims that the court or executor will settle from this price.
Property auctions in enforcement proceedings are governed by the Execution Code No. 120/2001 Coll. and, as a supplement, the Civil Procedure Code No. 99/1963 Coll. Money from the purchaser is not paid directly to the debtor. First, a distribution schedule is drawn up (§ 337c et seq. of the Civil Procedure Code in conjunction with the Execution Code), and only any remainder is then paid to the debtor.
The basic formula looks like this:
Highest bid – costs of proceedings – secured creditors – other creditors = remainder for debtor
The calculation includes not only the debt that triggered the execution. All other registered claims are satisfied, such as a mortgage or other enforcement actions on the same property.
Sample budget: what all is deducted
A sample budget shows the items deducted from the price, but I deliberately omit specific amounts because they vary from case to case.
Labels A through H are merely placeholder symbols. You will find the actual figures in the judgment ordering the auction, the creditors' claim statements, and the executor's information.
| Item | Label | Note |
|---|---|---|
| Highest bid at auction | A | The minimum bid is two-thirds of the final price (§ 336e Civil Procedure Code). |
| Executor's fee and reimbursements | B | Governed by the implementing regulation to the Execution Code. |
| Costs of the creditor, including legal representation | C | Awarded in proceedings; ultimately paid by the debtor. |
| Court and administrative fees, expert reports, auction costs | D | Part of the costs of proceedings. |
| Secured creditor (typically a bank with a mortgage): principal, interest, fees, default interest | E | Satisfied in order of security interest ranking. |
| Other creditors and other enforcement actions | F | Only if claims were registered in time. |
| Taxes and fees related to the property | G | E.g. outstanding payments with statutory priority. |
| Remainder for the debtor | A – (B+C+D+E+F+G) | Can be zero. |
Interest and bank fees, as well as enforcement costs, may accumulate during proceedings. The debt at the time of auction is therefore often higher than when it began.
In what order are payments made
The order of payments is determined by law, not by agreement between creditors or the debtor's wishes.
- Costs of proceedings – auction and enforcement costs are paid first.
- Secured creditors – claims secured by a security interest, typically according to its priority (§ 337c of the Civil Procedure Code).
- Other claims by statutory groups – for example, maintenance or other registered claims.
- Remaining creditors – on a pro-rata basis if funds don't cover all.
- Remainder – is paid to the debtor.
The precise classification of a particular claim is determined by the court or executor according to § 337c et seq. of the Civil Procedure Code. If you are unsure, ask the executor or a solicitor for clarification.
What if funds don't cover the debt
When the proceeds do not cover all claims, the unpaid portion of the debt does not disappear and creditors may continue to pursue it.
The debtor then loses the property and some debts remain. Enforcement may continue, for example through wage garnishment or other seizure of assets. Debt settlement under the Insolvency Act No. 182/2006 Coll. may be considered as a possible solution, and its conditions are best assessed with a professional, such as a solicitor or insolvency administrator.
The property ceases to belong to the debtor only upon entry of ownership rights into the Czech Land Registry (Czech cadastral system governed by the Cadastral Act No. 256/2013 Coll.). The cadastral office cannot decide earlier than 20 days after notifying the owner. The average registration time is approximately 22 days.
Taxes and alternatives to auction
An auction is typically the most expensive option for the debtor, so it makes sense to compare it with other ways.
Weeks or months usually pass between the auction and the enforcement order. During this time you might consider, for example, selling the property with the executor's consent (see property sale in enforcement) or settling the debt (see settling enforcement). You can make your own estimate using the auction vs. sale calculator.
As for taxes: income from selling a property may be exempt from income tax under Act No. 586/1992 Coll., typically under the time test or depending on whether it was for residential purposes. Conditions can change, so verify them with the Czech Financial Administration or a tax adviser. Real estate acquisition tax was abolished by Act No. 386/2020 Coll.
Quick-fix offers, such as loans against security or sale-and-leaseback schemes, may make the situation worse. Don't sign anything in a panic and read about risks of sale-and-leaseback of property. Cash payment is limited to CZK 270,000 per day (Act No. 254/2004 Coll.). Bona fide sales proceed without cash, for example through an escrow account managed by a solicitor.
What to do now
The best first step is to find out the actual figures – the documents from which proceeds can be estimated.
- Obtain the enforcement order, the judgment ordering the auction, and a property valuation estimate.
- Ask the bank and executor for a current statement of the debt, including interest and costs.
- Check the title deed (property register) for security interests and other enforcement actions.
- Make a table following the template above and fill in the actual figures.
- Compare the options: auction, sale with executor's consent, and settlement.
The content of this website is informational and is not legal advice. You can obtain a free non-binding assessment of your situation via the form below the article. More on the phases of proceedings can be found in the guide enforcement on property.