Court, tax office or lienholder: three ways an owner is made to sell

Most people picture a forced sale as a courtroom affair: a judgment, a sheriff or an auctioneer appointed by the court, a gavel. Many are. But a large share of the vehicles, boats and equipment sold over their owner's head never pass through a court at all.

Every listing on AuctionBlock says which of three channels it came through, because the buyer's position differs with each.

Court sales

A court orders the sale: an execution on a judgment, a judicial foreclosure, a bankruptcy, an admiralty case, an Argentine subasta judicial. A court sale is usually the cleanest title a buyer can get, because the court decides which claims are paid from the price and which are wiped from the asset.

Administrative sales

A public authority sells without a court: a tax collector's seizure, a customs auction of goods left in bond, an agency disposing of abandoned vehicles. The rules come from the statute that gives the authority its power, and they vary widely in what survives the sale.

Lienholder sales

A creditor sells under a lien or a pledge, with no judge involved: a garage or towing company selling a car for unpaid charges, a marina selling a boat for unpaid dockage, a lender selling a pledged car. In Argentina, a bank holding a registered pledge can sell the vehicle itself after a court-ordered seizure (art. 39, Ley 12.962). These sales are often the least protective for the buyer: liens senior to the seller's frequently stay with the asset.

What to do with this

Before bidding, check the channel on the listing, then read what that channel clears in the relevant country guide. The underwriting checklist on each listing changes with the channel for the same reason.