Parate Execution: How Bank Auctions Work in Sri Lanka

Key Takeaways:

• Speed: Banks don't need a court order to sell mortgaged property.
• Notice: They publish a notice in the newspaper.
• Opportunity: You can buy lands at 30-40% below market value.

Parate execution allows commercial banks to recover bad loans quickly.

For Buyers: The Auction Process

1. Paper Advertisement: Listing the auction date.
2. Inspection: Usually allowed 2-3 days before.
3. Bidding: You must bring a bank draft for 10% or 25% of the bid value.
4. Balance: Must be paid within 30 days.

The Catch

Bank auctions are "As is, Where is".

• You cannot check the title (it's assumed the bank checked it).
• Squatters: If the previous owner refuses to leave, you have to evict them.

Verdict: Great bargains, but high stress.