Seized property at auction: debtors’ land, ARMA assets and sanctioned property

Seized property is sold not at the owner’s will but by decision of the state: to recover a debt, to preserve an asset’s value in a criminal case, or after confiscation under sanctions. These sales also take place openly on Prozorro.Sale. Below are the three main kinds of such lots and what to watch for in each.

Debtors’ land

The largest group is land plots seized in enforcement proceedings. They are sold by the State Enforcement Service and private enforcement officers to pay off the owner’s debts — loans, alimony, court judgements. There are thousands of such lots, from small personal farming plots to many hectares for commercial farming. All of them are in the “Seized land” catalogue.

What to watch for:

• Shares. Often what is sold is not the whole plot but a share — for example, 1/3. If you buy it, you become a co-owner with the other owners and will have to agree with them on how the land is used. Read the lot title carefully.
• Lease. The plot may be leased out — the tenant stays until the lease ends.
• Repeat auctions. If a plot does not sell, the auction is held again — the announcement says which attempt it is. Later attempts are often cheaper.
• Pre-emptive right. Some lots are sold with a pre-emptive right — the right holder may then buy the plot at the highest price bid.
• Buyer requirements are the same as for a regular sale of agricultural land: citizenship, the company’s ownership structure, documents proving the source of funds — see our guide on how to buy land at land auctions.

ARMA assets

Ukraine’s Asset Recovery and Management Agency (ARMA) sells property seized in criminal proceedings: this preserves its value until the court decides, instead of letting the asset lose it. It can be grain and oil, vehicles, machinery, real estate. Some ARMA lots are sold at Dutch auctions, where the price goes down.

Sanctioned property

The State Property Fund of Ukraine sells assets confiscated by the state under sanctions — stakes and share packages in companies, ships, real estate. These are the most expensive lots, and buying them often requires approvals, for example from the Antimonopoly Committee. The terms are in the announcement.

ARMA lots and sanctioned property are collected in the “Seized and sanctioned assets” catalogue.

Common risks

• Property is sold as is, and an inspection is not always possible — the organizer’s contacts are in the announcement.
• The former owner may challenge the seizure or the sale in court. Check the lot documents and, for large purchases, consult a lawyer.
• The payment deadline after winning can be short — it is best to have the money ready before the auction.

How to take part

1. Register on one of the accredited Prozorro.Sale e-marketplaces.
2. Pay the registration fee and the guarantee deposit and submit an application with documents before the deadline shown on the lot page.
3. Take part in the auction online; whoever offers the most wins.
4. After winning — the protocol, payment within the deadline in the announcement, the contract and the handover.

Seized land currently accepting applications

ARMA assets and sanctioned property

There is a lot of seized land, and new plots appear every day. Save a filter with a region and price — the radar will message you in Telegram as soon as a matching plot appears.

This is an overview for orientation, not legal advice. The binding terms of each auction are in its announcement and documents on prozorro.sale.