Lawyer Pavel PetrovLawyer Pavel Petrov

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Commercial property at bankruptcy auctions: a buyer’s checks

A low price does not establish that premises can immediately serve your business or be rented out. A commercial-property buyer needs three layers of review: title, existing contracts and actual operating capability.
🏢 AssetPremises, building, share or lease right.
📑 ContractsTenants, services and utility connections.
🛠️ OperationsInspection, extra costs and acceptance.

Identify the right included in the lot

Match the cadastral number, area, floor, designation and share across the notice, register and draft contract. Ownership of premises differs from a lease right or building share. “Operating business” does not establish that licences, equipment, customer contracts or staff transfer.

For separate premises, examine access to common areas, loading, parking and service systems. For an entire building, establish land rights too. List movable equipment separately: tenants, operators or leasing companies may own items outside the lot.

Existing tenants

Document or factWhy the buyer needs it
Leases and amendmentsTerm, area, rent, termination and return arrangements.
Registration where requiredComparison with register entries and third-party rights.
Security deposits and advancesWho received funds, which obligations transfer and how balances are treated.
Actual usersWhether occupation matches contracts and who owns stored assets.

Under the general rule in Civil Code Article 617, a change of owner does not itself terminate or alter a lease. Review validity, registration, disputes and possible termination grounds separately. An auction purchase is not blanket authority to change locks immediately.

Request a tenant schedule, handover records, payment reconciliations and dispute information. Do not count historic receivables as your future revenue without checking the rights acquired. The tenant-facing route is the separate business-centre bankruptcy guide.

Inspect for the intended business use

Request internal access and lot documents before applying. Record required capacity and verified power connections, ventilation, heating, water, loading, access hours and structural condition. Specialists should assess suitability for manufacturing, catering or other regulated activity: “non-residential” does not establish unrestricted use.

Compare actual layout with documents. Identify who services lifts and systems, network routes and equipment ownership. Do not budget for “free services” promised verbally without a supporting contract.

Full cost and cash reserves

Hypothetical calculation: price ₽5,000,000, survey ₽50,000, repairs ₽600,000 and pre-opening running-cost reserve ₽150,000. Total: ₽5,800,000, excluding individually assessed taxes, registration charges and other costs. If a ₽500,000 deposit is credited towards the price, the price balance is ₽4,500,000.

Check contractual tax wording, the seller’s status and lot composition. Do not automatically add VAT solely because this is an auction or promise a deduction without analysis. Running-cost reserves are assumptions; verify actual rates and opening timescales.

Acceptance and starting operations

After winning, compare the protocol, contract and payment. Civil Code Article 551 requires title transfer registration; Article 556 governs documented handover. A protocol does not prove vacant possession or functioning utilities.

🧾 Open the acceptance-record list

Property number, area and plan; keys, passes and access; condition, defects and photos; meters; included equipment; third-party belongings; tenants and occupied zones; technical and contractual documents delivered; missing items and reservations. Record the actual delivery date.

Check service contracts and tenant notification arrangements before operations start. Do not acknowledge third-party assets as part of your purchase.

When to pause before applying

Conflicting floor areas, unclear service-equipment ownership, undisclosed leases, registration restrictions or denied inspections warrant further review. Uncertainty does not prove wrongdoing, but it calls for an answer before bidding.

Use the lot and platform checks to find primary notices and the application document guide for participation. Equipment needs its own inspection process.

Frequently asked questions

Can a tenant be removed after ownership changes?

The change itself does not terminate a lease. Assess the contract, user rights and statutory grounds.

Is all equipment inside included?

No. Check lot composition and ownership item by item.

Do non-residential premises suit any business?

No. Designation, layout, engineering capacity and activity-specific requirements need review.

Sources and review date

Legal provisions checked on 24 October 2026. Future amendments not yet in force were not applied. Examples are hypothetical.

A pre-bid review can compare title, leases and operating arrangements and identify the questions requiring disclosure.

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