How to calculate the minimum bid price in property auctions and what it means for the debtor
Published 25 October 2026
The minimum bid in a property auction is two-thirds of the final price determined by expert appraisal (§ 336e of the Civil Procedure Code No. 99/1963 Coll., applied proportionately in enforcement proceedings under the Enforcement Code No. 120/2001 Coll.). The opening bid is therefore systematically lower than the appraisal value. A lower sale price typically means a smaller surplus available to cover the debtor's obligations.
Summary
- The minimum bid is two-thirds of the final property price (§ 336e CCP).
- The final price is based on the expert appraisal, adjusted for rights and encumbrances that survive the sale.
- The minimum bid is just the starting point; the final price depends on bidders' interest.
- The proceeds first cover costs of the proceedings and creditors' claims; any remainder goes to the debtor.
- Alternatives, such as selling with the executor's consent, should be compared with auctioning in time.
Why auctions start at a lower price than the appraisal
A common question is why a property, valued at a certain price according to the appraisal, is offered from a lower amount. The reason is a legal rule: the minimum bid is two-thirds of the final price. This is regulated by § 336e of the Civil Procedure Code No. 99/1963 Coll., which is applied proportionately in enforcement proceedings under the Enforcement Code No. 120/2001 Coll.
This is not therefore arbitrary action by the executor nor collusion with bidders. It is a general mechanism intended to facilitate the sale of the property, as forced sales are typically more difficult than ordinary market sales.
How the final price is determined step by step
The calculation involves several consecutive steps:
- Expert appraisal. A court-appointed expert valuator determines the price of the property and its appurtenances. This is usually the market value at the time of the appraisal.
- Adjustment for rights and encumbrances. Any value of real charges or other encumbrances that do not cease with the sale is deducted from the price. The result is the so-called final price.
- Resolution on price. The final price is determined by the executor in a resolution, against which participants may file a remedy within statutory time limits.
- Minimum bid. Two-thirds of the final price is taken as the opening bid for the auction.
Further details can be found in the law texts at zakonyprolidi.cz. The general procedure is also described on the page Enforcement proceedings on real property.
The minimum bid is not the final price
It is important to distinguish two things. The minimum bid is just the lower limit from which bidders may increase. The highest bid heard at auction may be higher if the property attracts several interested parties.
The course of the auction cannot be reliably predicted in advance. It depends on location, property condition, any legal encumbrances, and the number of interested buyers. If no bid is submitted, the law provides for further steps, such as a new auction. Such repetition, however, extends the proceedings and places additional costs on the debtor.
What a low minimum bid means for the proceeds
From the price achieved at auction, the costs of the proceedings are paid first, followed by creditors' claims in order of priority. The debtor receives only what, if anything, remains. The lower the price, the smaller the portion of the debt that will be paid from the proceeds, and conversely, the higher the portion of the debt that may remain unpaid after the auction.
This means the debtor may lose the property and still be liable for the debt. That is why auction is usually the most expensive option for the debtor. You can make a rough comparison in the auction versus sale calculator.
What options does the debtor have
Between the enforcement order and the auction, weeks or months typically elapse, providing time to consider:
- Repayment or agreement with the creditor – for example through instalments, if the creditor accepts them.
- Sale of the property with the executor's consent – often at a price closer to market value; see sale of property in enforcement proceedings.
- Legal action against the auction – some apply only in specific situations; an overview can be found in the article How to stop a property auction.
- Insolvency – solutions under the Insolvency Act No. 182/2006 Coll. have their own conditions and implications, which must be assessed individually.
In a sale outside the auction, the ownership right is transferred only by entry into the Czech Land Registry (Katastr nemovitostí) under the Real Estate Cadastre Act No. 256/2013 Coll. The cadastral office cannot decide earlier than 20 days after notifying the owner; the average entry time is roughly 22 days. Payment in serious transactions proceeds cashless, as cash payments are limited to CZK 270,000 per day (Act No. 254/2004 Coll.).
What to watch out for
In distress, offers of quick rescue appear, such as loans against security or reverse leasing. These can make the situation worse, so do not sign anything in panic and have contracts reviewed by an independent expert. Risks are described in the article on reverse leasing of property: risks.
If you are selling a property, consider the tax implications too. The tax on acquisition of real property was abolished (Act No. 386/2020 Coll.), but the proceeds from a sale may be subject to income tax under Act No. 586/1992 Coll.; this depends, for example, on a time test and whether the property was a home. Verify your specific situation with the Financial Administration or a tax adviser.
This text is informational and does not constitute legal advice. Your situation can be assessed free of charge via the form on the website.