ENFORCED SALE OF A FARM IN THE COURSE OF EXECUTIVE PROCEEDINGS AND ITS CONSEQUENCES FOR THE BUYER

The latest amendment to the code of civil proceedings has provided for a completely novel manner of enforcement proceedings, and namely an enforced sale of an agricultural business or farm (articles 106414-106423 o f the code). The paper focuses on the analysis of the two legal ways in which a farm may be sold: (1) by putting it up for an auction, or (2) in a free market, and on the issues related to the transfer o f the title to the farm by virtue of a contract concluded by the receiver and the buyer, and to the division of the proceeds from the sale. Another issue analysed is the liability of the new owner for the debts attached to the farm he has acquired. In the event o f an enforced sale of a farm, the legislator did not adopt the principle o f an enforced sale having an effect of a primary acquisition of the subject of executive proceedings. On the contrary, exeutive proceedings resulting in an enforced sale of a farm do not eliminate the charges burdening individual assets of the subject of the sale, but create personal liability of the buyer for the debts incurred as a result of business carried out on the farm before he had bought it, provided those were disclosed to him during the executive proceedings