Foreclosure is one of those legal situations that can come as a surprise. A person or business may find out about it when they are unable to sell their apartment, use their bank account, or drive their car. It often causes confusion and fear, although not every foreclosure results in the loss of property.
In this article, SENSE lawyers explain what property seizure is, in which cases it is imposed, what its consequences are, and how it can be appealed or lifted. We are speaking generally, without personal legal advice, because each situation depends on specific circumstances.
What is property seizure in simple words?
Seizure of property is a legal restriction of the owner’s right to dispose of his property. Sometimes the restriction applies only to alienation, sometimes to use as well. Formally, the property remains the property of the person, but his options regarding this property are significantly narrowed.
Arrest does not automatically mean confiscation. It is a temporary measure used to achieve a specific procedural goal – for example, to ensure the enforcement of a court decision or to preserve property until the dispute is resolved.
What property can be seized?
In practice, seizure can be imposed on various types of property. Most often, it is real estate – apartments, houses, land plots. It can also be vehicles, corporate rights, bank accounts or cash.
In business, equipment, inventory, or company accounts are sometimes seized. In each case, the extent of the restrictions depends on the decision of the authority or court that imposes the seizure.
Who and in what cases imposes seizure of property?
Property can be seized by various authorities and for various reasons. The most common options are judicial seizure and seizure within the framework of enforcement proceedings.
Arrest by court order
The court may impose an attachment as a measure to secure a claim. This occurs when there is a risk that without such a restriction, enforcement of a future judgment will be difficult or impossible. For example, if there are reasons to believe that the defendant will sell the property before the dispute is resolved.
Such issues are regulated by procedural codes, in particular the Code of Civil Procedure and the Code of Criminal Procedure of Ukraine. The court assesses the arguments of the parties and decides whether the arrest is justified and proportionate.
Arrest in enforcement proceedings
If a court decision has already entered into legal force and the debtor does not comply with it voluntarily, a state or private enforcement agent may impose an arrest. This is one of the methods of enforcing the decision.
In this case, the seizure is aimed at ensuring debt collection. The property can be described, its alienation prohibited, and in some cases, prepared for sale.
Arrest in criminal proceedings
In criminal cases, the seizure of property is used to preserve physical evidence, secure possible confiscation, or compensate for damage. The decision on this is usually made by the investigating judge.
Such an arrest may concern both the suspect and third parties – depending on the situation and the origin of the property.
How to find out if property has been seized
The owner does not always receive notice of the arrest immediately. Often, they learn about the restrictions when trying to sell the property, arrange an inheritance, or carry out a registration action.
Information about real estate seizures can usually be found in state registers. As for accounts, a signal may be the blocking of transactions by the bank. In enforcement proceedings, the debtor is usually sent relevant resolutions, but in practice, notifications may arrive with a delay.
What are the consequences of arrest for the owner?
The main consequence is the inability to freely dispose of property. Sale, donation or other registration actions become impossible. In the case of accounts, the funds cannot be used or can only be used partially.
Для бізнесу арешт може створити серйозні операційні труднощі. Для фізичної особи – поставити під загрозу повсякденні потреби. Саме тому важливо розуміти, чи є арешт законним і які є варіанти реагування.
Is the seizure of property always legal?
Formally, arrest is imposed on the basis of the law and a corresponding decision. However, this does not mean that it is always justified or proportionate. In practice, there are situations when arrest is imposed with procedural violations or without proper justification.
For example, they may seize property that is not relevant to the dispute or impose excessive restrictions. In such cases, the seizure can and should be appealed.
How to appeal the seizure of property
The appeal mechanism depends on who imposed the arrest and in what proceeding. There are several general approaches that are used in practice.
Оскарження арешту в суді
If the arrest is ordered by the court as a measure to secure a claim, the interested party has the right to file an application to have it revoked or modified. Such an application usually provides reasons why the arrest is excessive, unjustified or has lost its relevance.
The court evaluates the arguments, evidence, and balance of interests of the parties. The decision depends on the specific circumstances of the case.
Complaints in enforcement proceedings
In enforcement proceedings, the actions or decisions of the enforcement agent can be appealed to the court. For example, if the seizure was imposed in violation of the procedure or on property that is not subject to collection.
Such disputes often require careful analysis of documents and deadlines, as procedural errors can complicate defense.
Cancellation of arrest in criminal proceedings
In criminal cases, the seizure of property may be lifted at the request of the owner or another interested party. It must be proven that the grounds for the seizure have ceased to exist or that it disproportionately restricts rights.
The consideration of such issues usually takes place with the participation of an investigating judge.
When the seizure of property is automatically lifted
In some cases, the arrest ceases to be effective without a separate decision to cancel it. For example, after the full execution of a court decision or the completion of enforcement proceedings.
However, in practice, even in such situations, there may be delays in the actual removal of the seizure from the registers. Therefore, additional actions on the part of the owner or his representative are sometimes required.
Common mistakes to avoid
One common mistake is to ignore an arrest in the hope that it will go away on its own. This can lead to a complication of the situation or a waste of time.
Another mistake is trying to act without understanding the process. An incorrectly submitted application or missed deadline can negate your chances of success.
Why it’s important to understand the situation as early as possible
The sooner the owner understands why and on what grounds the arrest was imposed, the more options he has. In many cases, timely response allows for restrictions to be reduced or lifted more quickly.
Each case has its own nuances. The grounds for the arrest, the type of property, the stage of the proceedings, and other factors are important.
How can the law firm SENSE help?
SENSE lawyers work with issues of property seizure for both individuals and businesses. We help analyze the situation, explain possible scenarios, and prepare a legally sound position.
The consultation allows you to understand whether there are grounds for appealing the arrest, what steps are appropriate in your case, and what risks should be considered. It does not replace a court decision, but it helps you act consciously.
Result
Seizure of property is a serious, but not insurmountable, restriction. In most cases, it is a tool of the process, not a punishment. Understanding the reasons for the seizure and the mechanisms for appealing it helps reduce stress and make informed decisions.
If you are faced with property seizure and want to understand your situation, SENSE specialists can help with the analysis and explanation of possible next steps, taking into account the current legislation of Ukraine.