Does purchasing property from a bankrupt really carry legal risks?

In fact, this is not true. Firstly, the legislation establishes a clear procedure for the sale of property. Over the past few years, both the bankruptcy procedure itself and the bidding procedure have become more understandable and transparent.

Data on bankruptcy, inventory of property, valuation, progress of auctions, and conditions for conducting them can be found on the Internet.

Secondly, the procedure for determining the winner is as transparent as possible. The auctions are held in an open form. Anyone can take part in them by submitting an application and paying a deposit. On the auction date, all participants log into the electronic platform and place their bids at the auction. The participant who offers the maximum price wins the auction and enters into a property purchase and sale agreement.

Thirdly, all restrictions (seizures) and encumbrances (pledges) are removed from property sold at open auction. We can say that such property receives a new legal life; it is “cleared” of any possible claims of any third parties. According to the norms of the Civil Code of Russia, namely Article 352, upon the sale of objects that are pledged in order to satisfy the requirements of the pledgee in the manner prescribed by law, the pledge is terminated. It is also worth noting that transactions concluded at open auctions are quite difficult to challenge.