Is a bid bond required?
A bid bond is required in all cases. This is calculated as 10 percent (10%) of the freehold value when it is a sale, and three times the minimum amount when it is a lease or an emphyteutical grant. The Bid-Bond duration must be for three months. The Bid-Bond is released:
- when the winning bidder signs the relative deed or lease agreement
- when the bidder is not successful
The only instance when the Bid-Bond amount is retained by the Lands Authority is when the winning bidder fails to sign the relative deed/lease agreement.