Judicial sale: the conditions for sale
The sale has to be advertised in a local paper of general circulation and a paper of vessel’s flag state, 30 days prior to the sale of the vessel (please be advised that this period can be shortened, under special circumstances, which may be subject to certain conditions imposed by the Court). In addition, the judge may also stipulate that an advertisement has to be placed in another international newspaper such as Lloyds List.
The sale is furthermore to be made public by the posting of notices of sale in the manner customary at the place where the sale is to take place (to be carried out by a bailiff). Notices of sale are normally posted on the vessel, the premises where the vessel is berthed and the Court. The notices of sale must comply with the same requirements as the advertisements and therefore usually the text of the advertisement is used.
The Conditions of Sale for the auction have to be drawn up by the enforcing creditor.
The price to be paid for the vessel consists of the amount of the highest bid made at auction, increased by the costs of the sale proceedings (i.e. legal costs, court and bailiff fees). A statement of these costs has to be put up no later than three days prior to the judicial sale.