Supreme Court rules provisional registrations survive property auctions

The Supreme Court on March 12 dismissed an appeal, ruling that provisional registrations securing ownership transfer claims survive compulsory property auctions and are inherited by the buyer.

The court held that these entries are not erased during a forced auction unless a higher-priority security right or provisional attachment exists. Unlike registrations for security purposes, those meant to preserve the rank of an ownership transfer claim pass to the purchaser intact.

This principle applies when co-owners auction an entire property to divide proceeds after a partition judgment ordering payment of money. The court found that even if the registration covered only a partial share before the conclusion of arguments, the buyer of the whole property inherits the obligation.

In case number 2025Da217707, the court determined the registration was established before the conclusion of arguments in the partition judgment and faced no senior claims. Consequently, the plaintiff who purchased the property at auction was required to assume the registration rather than have it cancelled.

The justices rejected the argument that a final partition judgment automatically converts the rights of the provisional registrant into mere claims for distribution proceeds or unjust enrichment, affirming that the underlying right to demand ownership transfer remains protected.

Citing a precedent (2003Ma1438) establishing that buyers in forced auctions must accept these registrations, the court applied that logic to co-owned property divisions.

The Supreme Court ordered the plaintiff to bear the costs of the unsuccessful appeal.