[Direct answer]In the Beijing area, properties that are in the execution process are generally appraised only once, and the appraised value is used as the reference price for auction; after the auction fails, the starting price is usually not reassessed, but reduced according to the prescribed proportion. According to Article 10 of the "Regulations of the Supreme People's Court on Several Issues Concerning Online Judicial Auctions of People's Courts" (Legal Interpretation [2016] No. 18, effective from January 1, 2017), the starting price of online judicial auctions shall not be lower than 70% of the appraised value or market price; Article 26 stipulates that the reduction in the starting price of the re-auction shall not exceed 20% of the previous starting price. If the parties have objections to the appraised value, they may raise them in accordance with the law before the auction is completed. It is recommended to check the area, location, and comparable cases of the property in time after receiving the appraisal report, and, if necessary, apply for a reassessment or determine the reference price through bargaining or inquiry procedures.

1. Problem background and typical scenarios

Typical scenario: After the judgment takes effect, the court seizes the debtor's property and initiates an appraisal and auction; after receiving the appraisal report, the party concerned believes that the price is too low; after the property fails to sell at the second auction, it enters the stage of being sold at a reduced price or used to offset the debt; the third-party rights holder raises an ownership objection, leading to the suspension of the appraisal and auction. Many people mistakenly believe that "each auction requires a new appraisal" or that the appraisal price is the final selling price. In fact, the appraisal price is just a pricing reference. The starting price and transaction price fluctuate around the reference price. The quality of the appraisal directly affects the efficiency of the disposal. For related transactions and property rights issues, please refer to the relevant provisions.Legal services for real estate transactions and construction projects.

II. Key points of dispute

Controversial issues: ① Whether the evaluation agency's procedures were legal and whether the parties were notified in accordance with the law; ② Whether the evaluation price significantly deviated from the market price and whether factors such as renovations and location were overlooked; ③ Whether the evaluation was reassessed after the failed auction, and whether the price reduction was compliant with regulations; ④ The impact of third-party objections on the evaluation and auction process; ⑤ Who should prepay and bear the evaluation fees. There is a time limit for raising objections during the evaluation phase, and there is very limited room for claiming after the auction has concluded.

III. Professional analysis by Hengluo Lawyers

Case 1: The evaluation and auction process was disrupted due to ownership disputes. In the application for enforcement by the attorney Wang Dong of Hengluo Law Firm, the court ruled to evaluate and auction the property owned by the debtor Zhou Qiang in Yichang, Hubei Province. The third-party plaintiff, Wang Xiaoyu, raised objections on the grounds that the property was purchased under a false name. The first-instance court ruled to suspend the enforcement. The lawyer argued that the agreement to purchase the property under a false name only constituted an internal creditor's right and did not result in a change of ownership. The second-instance court reversed the judgment and allowed the enforcement. This case shows that the evaluation and auction process may be suspended due to ownership disputes, and it is necessary to continuously track the procedural nodes. This case was handled by Beijing Hengluo Law Firm.Wang DongAttorney (Practice Certificate No.: 11101201910090334, subject to the certificate issued by the judicial administrative organ) acting on behalf of the client.

Case 2: The seized property was excluded from enforcement through a lawsuit challenging the enforcement. In the case handled by Li Yonghui and Fu Xiaofei of Hengluo Law Firm, three sets of resettlement housing were included in the scope of enforcement against the debtor Liu Weirong and were sealed up for auction. After the third-party's enforcement objection was rejected, the third party filed a lawsuit challenging the enforcement. The court ultimately ruled that the enforcement of two of the three houses could not proceed and confirmed that they belonged to the plaintiff. Whether there is a dispute over the ownership of the houses directly determines whether the appraisal and auction can proceed. This case was handled by Beijing Hengluo Law Firm.Li YonghuiAttorney (Practice Certificate No.: 11101199611955812, subject to the certificate issued by the judicial administrative organ);Fù XiǎofeiThe lawyers (practice license number: 11101202111348854, subject to the document issued by the judicial administrative organ) jointly act as the agents.

Case 3: The full-payment buyer was excluded from enforcement. In the enforcement objection case represented by Hengluo Xue Suhua, the buyer of the commercial housing had paid the full purchase price and actually occupied the property. The lawyer argued that the buyer's right to delivery took precedence over the right to priority compensation for the construction project price and the mortgage right. The court adopted the lawyer's opinion and suspended the enforcement of the real estate. If the parties believe that the evaluation and auction infringe their own rights and interests, they should raise objections in time before the transaction. This case was handled by Beijing Hengluo Law Firm.Xue SuhuaThe attorney (practice license number: 11101201211769926, subject to the document issued by the judicial administrative organ) acts as the agent.

IV. Practical suggestions and legal basis

Legal basis: The "Interpretation of the Supreme People's Court on Several Issues Concerning the Determination of Reference Prices for Property Disposition by People's Courts" (Interpretation No. 15 of 2018, effective from September 1, 2018) establishes four pricing methods: price negotiation, targeted inquiry, online inquiry, and commissioned appraisal; Articles 10 and 26 of the "Interpretation of the Supreme People's Court on Several Issues Concerning Online Judicial Auctions by People's Courts" (effective from January 1, 2017); and the provisions on appraisal and auction reserve prices in the "Interpretation of the Supreme People's Court on Auction and Sale of Property in Civil Enforcement by People's Courts" (Interpretation No. 16 of 2004, effective from January 1, 2005). Practical suggestions: ① After receiving the appraisal report, check the house information against the market price; ② If you have objections to the appraisal price, submit them in writing before the auction concludes and apply for a reassessment or switch to price negotiation or inquiry procedures; ③ Pay attention to the starting price and price reduction range in the auction announcement; ④ If a third party claims rights to the house, promptly file an enforcement objection. For related procedures, please refer to the following link:Legal services for creditor-debtor disputes and enforcement cases.

5. Henglu Law Firm's Reminder

The evaluation is not a "final decision", but there is a window of opportunity for correction. After the evaluation report is delivered, the area, decoration, and comparable cases should be checked in time. If the price is obviously too low, objections should be raised before the auction is completed; once the property is sold, the cost of regretting the purchase will be high. After the auction fails, the price is usually reduced according to regulations, and the property will not be re-evaluated, so the quality of the first evaluation is particularly important. In cases with complex property rights or overlapping objections, it is recommended to engage professional lawyers as soon as possible to avoid missing the objection deadline.

VI. Frequently Asked Questions

Q1: How many times is a property appraisal conducted, and can the appraised value be changed if the appraiser's assessment is disputed?

Generally, an appraisal is only conducted once. After a failed auction, the starting price is lowered according to the prescribed discount rate for the next auction, and no new appraisal is required. However, if the party concerned has evidence to prove that the appraisal price is significantly deviating from the market price, they may raise objections before the auction concludes, apply for a re-appraisal, or determine a reference price through negotiation or inquiry procedures. Whether the objections will be accepted depends on whether the appraisal method, parameter selection, and comparable cases are reasonable.

Q2: What evidence do I need to prepare to challenge the appraisal value?

You need to prepare an appraisal report, a property ownership certificate or a seizure list, recent transaction cases in the same neighborhood (online signing data or agent quotes), proof of the house's decoration and area, and a description of the house's special conditions (orientation, floor, school district, etc.), and submit a written objection, stating the reasons and basis for the objection. The more specific the materials are, the more conducive it is to prove that the appraisal price is inaccurate and create conditions for a reassessment or adjustment of the reference price.

Q3: Who will bear the cost of the evaluation? How much does it cost to hire a lawyer?

The appraisal fee is generally paid in advance by the applicant for enforcement, and is ultimately deducted from the disposal price as a priority, which is essentially borne by the person subject to enforcement. The reappraisal fee is shared according to the results of the objection and the fault circumstances. Lawyer's fees are charged on a per-case or per-stage basis, with no unified standard, and are subject to the entrustment contract. It is recommended to clarify the scope of fees before entrusting, so as to avoid repeated expenses in the multiple stages of appraisal, auction, and objection.

Q4: How long does it take to evaluate and handle objections, and how long is the auction cycle?

The evaluation of objections is reviewed by the executive agency. Generally, the time limit for review is not calculated separately, but it may lead to a suspension of the auction. After the online judicial auction fails to sell, it shall be auctioned again within 30 days. The overall cycle from seizure to transaction usually takes several months. If there are ownership disputes or a second appeal, it may take more than a year. It is recommended to complete the objection before the auction announcement is issued to avoid a procedural stalemate.

Q5: If you think the appraisal price is too low, what should you do specifically?

The first step is to immediately compare the transaction price in the same community with the evaluation report to determine whether it is significantly low. The second step is to raise objections in writing and attach comparable cases, applying for a reassessment or switching to a negotiation or inquiry procedure. The third step is to pay attention to the starting price of the auction announcement (not less than 70% of the evaluation price) and the amount of the price reduction. The fourth step is to raise objections to the execution if there are third parties with rights to the house. Never emotionally resist the execution before the objections are dealt with.

The above content is based on the compilation of judicial practices in the Beijing area. The facts of individual cases and the jurisdiction of the court may affect the conclusions. Welcome to consult Hengluo Lawyers about specific situations.

If you are currently facing similar problems, it is recommended that you consult a professional lawyer as soon as possible with the relevant evidence materials, so as to avoid missing the statutory time limits.Legal services for creditor-debtor disputes·Attorney Wang Dong·Beijing Henglu Law Firm

Disclaimer: This article is compiled based on the current effective laws and regulations and public adjudication rules, and is for general reference only. It does not constitute a formal legal opinion on specific cases. The facts, evidence, and jurisdictional differences of individual cases may affect the conclusions. If you encounter disputes, please consult a practicing lawyer in time.