What is a judicial auction?

A remate judicial (judicial auction) is a public sale ordered by a court so that someone who was not paid finally gets paid. It is not a promotion, not a clearance sale, and it is not run by the owner of the property: it is run by the State, which is why it follows fixed rules anyone can read.

The story is almost always the same. A person or a company borrowed money and put a property or a vehicle up as collateral. They stopped paying. The creditor sued. The court agreed and ordered the asset sold in public so the debt can be paid out of the proceeds. That public act is the auction.

Who is who

Four roles, worth learning because the published notice names them without explaining them:

• Ejecutante (creditor): the party owed money: usually a bank, a finance company, a credit union or an individual holding a mortgage. They pushed the process forward.
• Ejecutado (debtor): the party who owes. Usually the registered owner, though not always: someone may have pledged their property to secure another person's debt.
• The court: orders, publishes and runs the auction. In Costa Rica these are typically the collection, civil or small-claims courts.
• Postor (bidder): you, if you plan to bid. Anyone can be one, as long as they meet the requirements we cover later.

Why they are cheaper (and why that is not magic)

An auction is not trying to maximise the price: it is trying to pay off a debt. The starting price (the base) comes from what the parties agreed in the mortgage deed or from an appraisal, not from today's market value. If nobody bids, the price drops in the next round. That is where the real opportunities come from.

The discount has a counterpart, and the law states it bluntly: you buy the asset as it stands, with no warranty, without being able to inspect it, and with no way to give it back.

“Quien adquiera bienes mediante remate lo hará bajo su riesgo en cuanto a situación, estado o condiciones de hecho, consten o no en el expediente.” In English: whoever acquires assets at auction does so at their own risk as to location, condition or factual circumstances, whether or not these appear in the case file.

Translated: if the roof has collapsed, if someone is living inside, or if the car will not start, that is your problem from the moment you win. Nobody refunds you for it. That sentence is the reason most of this guide exists.

Judicial, bank and institutional auctions are not the same

• Judicial auction: ordered by a court inside an enforcement proceeding. It is governed by the Code of Civil Procedure and it is what this guide explains. It is announced in the Boletín Judicial.
• Bank sale or auction: the bank already took the asset (by award or payment in kind) and is now selling it itself. The bank's own rules apply, not the court's.
• Institutional auction: a public body or company selling its own assets (fleet, equipment, seized goods) under its own procurement rules.

Takeaways

• A judicial auction is a forced sale ordered by a court to settle a debt.
• The starting price is not market value: it is the base set in the case file.
• You buy at your own risk, and the law says so explicitly.
• Bank and institutional “auctions” are a different animal with different rules.