The award is a common legal method for transferring goods, especially in court cases related to debts and enforcement.
Lawyers handling property and property rights must comprehend how this institution operates.
The article explains the operation of the award, its primary regulations, and its relationship to the promise of products.
CPC’s Comprehensive Guide to Enrolling in Benefits
What does Adjudication mean?
The award is when the creditor seizes a debtor’s property to fulfill part or all of the debt in a legal or out-of-court process.
When there are pledged goods, and the creditor shows direct interest in them for full or partial debt satisfaction without prior sale, this process takes place.
In the Civil Procedure Code (CPC), the award is outlined in Articles 876 to 878 and is viewed as a primary method of fulfilling credit obligations.
Refer to Articles 876 through 878 of the CPC.
The plaintiff can request to be awarded the goods by offering a price that is not lower than the assessment.
Paragraph 1 necessitates that the award be obtained through a subpoena from the application.
I – through the Justice Diary, represented by his attorney appointed in the same.
When represented by the Public Defender or when there is no appointed prosecutor, notification will be sent by letter with a receipt notice.
When there is no attorney appointed in person, electronic means can be used as per Article 246, Paragraph 1.
The subpoena is deemed valid if the address has changed without prior notice to the court.
If the person who received the notice does not have a lawyer representing them, the subpoena mentioned in § 1 will be cancelled.
If the credit amount is:
If the value of the goods is less than the award amount, the recipient must promptly provide the additional amount to the recipient.
The execution will proceed with the remaining balance if the return exceeds the value of the goods.
The same entitlement can be utilized by individuals mentioned in Article 889, sections II to VIII, as well as by competing creditors who have collateral on the same asset, by the spouse, partner, descendants, or ancestors of the debtor.
If there are multiple claimants, bidding will take place among them, with preference given to the spouse, the partner, the descendant, or the ascendant in that order if the offers are equal.
In case of a social quota or closed anonymous society taking action in support of foreign executors, it will be officially documented, with the responsibility of notifying partners about the situation and ensuring their priority rights.
After five days from the last subpoena, the Judge will order the award’s release after addressing any outstanding issues, as per Article 877 of the CPC.
Paragraph 1 will be considered the final and complete decision by the Judge, Contractor, Registrar, or Head of Secretariat, and will be sent if the Judge is present.
When it comes to real estate, I have both the award letter and the dismissal warrant in my possession.
II – the sequence of providing the items to the contractor, if they are movable.
The award letter will include details about the property, its registration and records, the awarding authority’s copy, and proof of payment of the transmission tax.
In the event of a successful bid, the executor can offer to sell the item at the assessed value if there are no other bidders, or at the highest bid amount.
If the mortgage debtor goes bankrupt or becomes insolvent, the right of withdrawal outlined in section 3 will be given to the mass or tender creditors, who cannot reject the property’s valuation price.
In case there are efforts to sell the property, a new opportunity for bidding will be given, and a fresh evaluation may be conducted.
How does the impenetrability of family property function according to Law no. 8.009/90?
How does the process of Adjudication function?
Judicial Decision-making
- To hold the award ceremony, the item must be pledged and properly appraised as stated in Article 876 of the CPC.
- The creditor can ask the judge to transfer the property as payment for the debt.
- Other creditors or stakeholders involved in the process must be subpoenaed in order for them to exercise their preferential rights.
The court decision is straightforward, but evidence of the good’s value must be provided to settle the debt.
Extrajudicial Adjudication refers to resolving disputes outside of the court system.
The extrajudicial award has become easier to obtain with the introduction of laws like Law No 14,382/22.
The procedure can be done directly in offices, particularly in real estate situations, as long as all legal requirements are met.
What are the standards for granting?
The CPC establishes certain standards for the reward to serve as a method of fulfilling debt indirectly.
These standards, which specify the requirements and individuals authorized for the process, are detailed on your devices.
Next, review the key points.
Requesting Adjudication is a privilege that can be exercised.
The privilege to demand the reward of pledged items is not limited to the creditor of the enforcement.
Article 876, § 5 of the CPC outlines the individuals authorized to exercise this privilege.
Competing creditors who have pledged the same asset, spouse, companion, descendants, or ascendants of the execution can exercise an equivalent right as specified in Art. 876, § 5 of the CPC.
Article 889 outlines additional matters that could be relevant to the award in Incidents II to VIII.
- Well-owners who cannot divide their ideal share because it has been pledged.
- Holders of legal rights like possession, utilization, and habitation are affected when a lien is placed on assets covered by these rights.
- Landowners under surface, enfiteuse, or special concessions.
- Creditors with warranties like mortgages or pledges that have been previously noted, as long as they are not involved in the execution.
- Buyer promises to buy back the item if it is redeemed due to a valid purchase agreement and recorded sale.
- The seller promises when the pawns indicate interest in buying rights associated with the registered promise.
- Union, states, or municipalities in case of the sale of protected heritage sites.
Price offer should be equal to or greater than the appraisal.
For the award to be valid, the applicant’s price must be equal to or greater than the award’s value.
Article 876 of the CPC contains:
The executor can request the goods to be awarded by offering a price equal to or higher than the assessment, according to Article 876 of the Civil Procedure Code.
Paragraph 4 of the same Article also covers cases where there is a difference between the credit value and the value of the awarded goods.
If the value of the credit is as follows according to Article 876, paragraph 4, of the Civil Procedure Code.
If the value of the items is less than the award amount, the recipient must promptly deposit the remaining amount for the person executing the award.
If the payment is greater than the value of the items, the execution will proceed with the remaining amount.
The rule enables the creditor to utilize the award as a means to partially or fully settle the debt, regardless of differing values.
Expressing interest in awarding.
The award is not guaranteed and can be chosen by the creditor.
It is essential for him to formally request consideration for receiving the pledged goods as payment.
If the lender opts for the prize, it will be seen as a valid means to settle the debt, whether in full or in part, as specified in Article 876 and its sections.
The CPC defines this mechanism with the goal of offering effective alternatives for debt execution while upholding the parties’ rights and fairness in the legal process.
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When is the award given?
The award takes place when the creditor decides to accept a pledge as a way to fully or partially settle the credit owed to them before the item is sold at auction or in a public market.
Sometimes, the award may occur in the following situations:
- The principal creditor can request the award immediately after the good is pawned and assessed, giving them priority over any third-party alienation.
- The creditor can decide to claim the right to award the item before the auction or public sale takes place to prevent it from being sold to another party.
- If no one bids at an auction, the creditor can sell the item for the evaluated value.
- If there are several parties involved (preference): if multiple creditors or interested parties seek the award, priority will be given to the creditor with a tangible guarantee or, if none is present, to the oldest creditor in the enforcement process.
The award is finalized once the judge approves it, confirming that all legal conditions have been satisfied and there are no obstacles, like third parties holding priority rights.
The transfer of real estate is finalized only upon the award being registered at the property registration office.
What kinds of awards are there?
Here are the categories of recognition.
- Adjudication in real estate law is commonly understood as the transfer of property ownership.
- Adjudication in administrative law involves awarding rights, such as permission to carry out projects, typically given to the successful bidder in a competition.
- Successive adjudication in the law happens when goods are passed from the deceased to their heirs or successors. This transfer is made official through an Adjudication Letter, which includes all the details needed for the registration and implementation of the handover.
What does a Letter of Adjudication in the CPC refer to?
The award letter, issued by the judge under the CPC, transfers ownership of a movable or immovable property to the contractor in a legal process.
This document serves as a formal record and legalizes the transfer of property to the contractor.
Function of Adjudication Letter
The award letter will serve the following purposes:
- The judge’s award letter in a legal case formalizes the transfer of property ownership to the contractor, eliminating the requirement for a separate document in the office due to its legal validity.
- In real estate matters, the award letter serves as a formal and adequate document for property registration, guaranteeing ownership rights to the contractor.
- The award letter marks the end of the expropriation phase in an execution process, transferring ownership to the new holder.
The Code of Civil Procedure, particularly Article 876, supports this interpretation by addressing the award within the framework of enforcement.
Imagine a situation where a pawned property is not auctioned during a legal process, and the creditor then requests to receive the property instead.
After the judge’s approval, the award letter will be issued, allowing the creditor to register the property in their name at the property registration office.
Relationship between Adjudication and Punishment
The postponement is a necessary part of the process of awarding as it connects the debtor’s asset to the execution procedure, making awarding impossible without it.
In cases of disagreement regarding pledged items, arbitration can effectively prevent the items from being sold at low prices, giving the creditor more control over debt repayment.
If a property is offered as collateral for a loan, the lender has the right to demand its transfer before it goes up for auction. This action accelerates the procedure and stops the property from being purchased by others.
Practical advice for attorneys seeking the accolade
The award is a valuable asset for a lawyer when handling executions and debts.
Success in utilizing this method relies on implementing effective strategies and adhering to legal regulations.
Here are some recommendations for utilizing the prize:
- Familiarize yourself with Articles 876 to 878 of the CPC to understand the criteria, process, and rights of the parties involved in order to comply with applicable laws and prevent procedural errors.
- Evaluate the possibility of receiving the award: Prior to selecting the award, assess the worth of the item being offered and its appropriateness for the credit due. Confirm that the cost matches the legal valuation outlined in CPC article 876.
- Prioritize communicating with the customer by outlining both the benefits and limitations of the award. Ensure the customer comprehends the potential impacts of the process, particularly in terms of extra expenses like taxes or varying values.
- Ensure that all necessary documents related to the pledge, assessment, and interest in the award are current and well-arranged, such as assessment reports, subpoenas, and relevant petitions.
- Consider utilizing extrajudicial awards whenever feasible, especially in real estate matters, as they can offer a quicker and more cost-effective resolution. Ensure compliance with legal prerequisites and initiate the procedure efficiently if appropriate.
- Monitor the deadlines and subpoenas closely to ensure compliance with the 5-day deadline following subpoenas for formalizing orders, as outlined in Article 877 of the CPC. Failing to meet deadlines could put the customer’s entitlement to compensation at risk.
- Evaluate the established priorities in the Civil Procedure Code when dealing with multiple stakeholders, such as the preference of family members who have already received their share or creditors with tangible assets.
- Facilitate discussions with other creditors to prevent disputes and speed up the process of distributing assets by reaching agreements on the value or terms of the collateral.
- Anticipate potential tax and registration problems by ensuring that the client is ready to handle expenses such as ITBI (Tax on Real Estate Transfer) and registration at the real estate office, which are necessary for the transfer process to be successfully completed.
- Consider exploring options for assets that are easily converted into cash: the best solution may not always be selling them at auction. For assets like vehicles or cash that can be quickly liquidated, evaluate if selling through a different method could lead to better outcomes for the lender.
Lawyers can enhance the use of the award through these methods, ensuring quick and efficient execution processes and satisfaction with the credit.
Understanding the institute thoroughly helps in advocating for customers’ interests in a more strategic and aligned manner.
Adjudication plays a crucial role in enforcing debts and transferring assets.
The award plays a crucial role in civil procedural law by allowing debts to be settled quickly and efficiently.
Your usage needs to pay close attention to technical aspects such as legal standards and the rights of third parties participating in the procedure.
Lawyers who are well-versed in the regulations of legal awards, whether in court or outside of it, possess a valuable tool to safeguard their clients’ interests and prevent asset depreciation during auctions.
The award proves its significance as a useful option for transferring assets, whether in debt execution or other specific situations like real estate or inheritance law.
With adequate understanding, one can improve outcomes for creditors by meeting legal obligations effectively, leading to increased efficiency and legal assurance in legal and non-legal proceedings.
Check out our article about the main points of Law No 14,133/2021, which focuses on litigation and administrative contracts.
