An auction hearing often takes less than an hour, and every decision falls inside that hour. People sitting in a courtroom for the first time regularly underestimate two things: how quickly the formal part is over, and how little time is left afterwards to arrange the bid deposit. This article walks through the hearing in the order it actually happens.
The hearing has four parts: the opening reading, in which the court states the facts of the case, the bidding hour of at least 30 minutes, the hearing on the award, and finally the award decision itself. The hearing is normally conducted by a judicial officer (Rechtspfleger), not a judge. It is open to the public, and anyone may listen.
| Part | Statute | What happens |
|---|---|---|
| 1. Opening reading | § 66 ZVG | The land register, the claims, the appraised market value, the lowest admissible bid and the auction terms are read out |
| 2. Bidding hour | § 73 ZVG | Bids are taken, for at least 30 minutes from the call for bids |
| 3. Hearing on the award | § 74 ZVG | The parties present are heard |
| 4. Award decision | § 87 ZVG | Announced at the hearing, or at a separate announcement date within one week |
The court opens by establishing and reading out the basis of the case under § 66 ZVG: the contents of the land register, the creditors pursuing the sale and their claims, the date of attachment, the appraised market value (Verkehrswert), any claims filed, and the lowest admissible bid together with the auction terms. It then notes that no further claims can be filed and calls for bids.
Listen for the passage on rights that survive the sale. Your bid is a cash bid (Bargebot): it covers only the amount you pay in money. Rights that remain in place under the auction terms, such as a right of residence or a usufruct, you take on in addition. In economic terms you therefore pay the cash bid plus the value of the rights you assume. What that means in practice is set out in the article on rights of residence and usufruct.
In most cases it is a judicial officer rather than a judge. They read out the case, take bids, rule on whether a bid is valid, and announce the award decision at the end. They will answer questions about procedure before the hearing starts. They may not advise you on the property itself.
Under § 73 (1) ZVG at least 30 minutes must pass between the call for bids and the close of bidding. Beyond that, bidding continues until no further bid is made despite the court asking for one. The court announces the final bid by calling it three times.
The 30 minutes are a minimum, not a maximum. In practice nothing often happens for the first 25 minutes, and the decisive bids come shortly before the close. Anyone who leaves the room after ten minutes of silence misses the actual auction.
Bids are made out loud and recorded in the minutes. A bid is always a cash bid for the full amount, not an increment on the previous bid. If you bid as a representative of another person or of a company, you need a publicly authenticated power of attorney (öffentlich beglaubigte Vollmacht), where a notary certifies the signature but not the content. Under § 71 (2) ZVG the court will otherwise reject the bid, unless the authority to represent is obvious. A power of attorney written informally on paper is not enough.
A party whose rights would suffer if the bid were not honoured may demand security under § 67 (1) ZVG, and only immediately after the bid is made. The amount is one tenth of the appraised market value under § 68 (1) ZVG. Anyone who cannot provide it there and then loses the bid.
The form is what counts. § 69 ZVG expressly rules out cash. What is accepted:
| Means | Condition |
|---|---|
| Bundesbank cheque or crossed cheque | Issued no earlier than three working days before the hearing, payable at a credit institution licensed in Germany |
| Bank guarantee | Unlimited in time, unconditional, with the guarantor waiving the defence of prior recourse, performable in Germany |
| Advance transfer to the court treasury | The money must have arrived before the hearing, and you bring the proof with you |
Anyone who turns up without one of these may still bid, but loses the bid the moment a party demands security. The details and the usual mistakes are set out in the article on the bid deposit.
After bidding closes, the court hears the parties present on the award under § 74 ZVG. This is where it is decided whether the highest bid gets the award, or whether one of the statutory thresholds applies. For you as the highest bidder this is the most uncomfortable part of the hearing, because you no longer have any influence over it.
Two thresholds matter at a first hearing:
At a later hearing both thresholds fall away. How to turn that into a bidding strategy is covered in Bidding successfully, and the arithmetic behind the lowest admissible bid is explained in the article on the minimum bid.
Under § 81 (1) ZVG the award goes to the highest bidder. Under § 87 ZVG the decision is announced either at the auction hearing itself or at a separate announcement date, set immediately and normally no more than a week later. With the award the purchaser becomes the owner of the property under § 90 (1) ZVG.
This is the point many people underestimate. Ownership passes with the award decision, not with payment and not with the entry in the land register. From that moment you carry the burdens and the risks of the property. Under § 49 (2) ZVG the cash bid bears interest from the award and is payable before the distribution hearing, at which the court distributes the proceeds among the creditors. The bid deposit is credited against it.
The costs that follow, from property transfer tax to court fees, are set out in the article on closing costs. If someone is still living in the property, the article on eviction is the next step.
Auction hearings are almost always morning hearings. Of the 3,194 upcoming hearings with a stated time in Klaava's inventory, 90.7 per cent start between 8 and 11 am. The most common start time is 10:00 with 26.9 per cent, closely followed by 09:00 with 25.5 per cent. Reference date: 25 August 2026.
Klaava is a German platform for foreclosure auction dates and evaluates the associated court documents automatically. Three observations from the current inventory of 3,195 upcoming hearings at 418 local courts:
Which hearings are coming up at your local court is shown on the property map or in the overview by local court and state.
The list of essentials is short, but nothing is waived if something is missing:
How long does an auction hearing take? Under § 73 (1) ZVG at least 30 minutes must pass between the call for bids and the close of bidding. Together with the opening reading and the hearing on the award, a hearing usually takes 45 to 90 minutes. With several properties on one court day the call for yours can be delayed considerably.
Can I just watch without bidding? Yes. The auction hearing is open to the public, and observers need neither register nor identify themselves. For a first hearing that is exactly the right preparation: sit in the room once without your own money at stake and follow the procedure.
What happens if I do not have the bid deposit with me? You may bid, but you lose the bid as soon as a party demands security under § 67 ZVG and you cannot provide it on the spot. Cash is ruled out by § 69 ZVG. Always bring a Bundesbank cheque, a bank guarantee or proof of an advance transfer.
When do I become the owner of the property? When the award decision is announced. Under § 90 (1) ZVG the purchaser becomes the owner of the property through the award, regardless of payment and of the later entry in the land register. From that moment you carry the benefits, the burdens and the risk.
Can the hearing be cancelled at short notice? Yes. The proceedings can be discontinued or the hearing set aside right up to the last moment, for example if the debtor pays or a creditor withdraws the application. In Klaava's inventory the date has changed since first recording for 23.3 per cent of upcoming hearings. Check the hearing the day before.
Do I have to pay the bid immediately? No. The cash bid falls due before the distribution hearing, at which the proceeds are distributed among the creditors. Under § 49 (2) ZVG it bears interest from the award onwards. Your financing should therefore be in place before the hearing, see Financing a foreclosure purchase.
The whole process from the court order to the transfer of ownership is explained in How a foreclosure auction works. How to arrive at your maximum bid is shown in Bidding successfully.
This article is general information. It does not replace legal advice from a qualified lawyer.
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What is the minimum bid at a German foreclosure auction? The 50 % and 70 % thresholds under §§ 74a and 85a ZVG, explained plainly, with worked examples for bidders.
What deposit do you need at a German foreclosure auction? Amount, accepted means of payment and what happens if you do not pay. All under § 67 ZVG.