Foreclosure in the Principality of Monaco is governed by chapter VIII of the Civil Procedure Code.


It must be preceded by a summons to pay, served in person or to the residence of the debtor.


If no payment is made within 30 days, the creditor may proceed to foreclosure. It is the foreclosure, not the summons to pay, that is recorded at the mortgage registry.


Another aspect that differs from France is that it is not possible to request authorisation to sell the foreclosed property on an amicable basis at the settlement hearing, which is the equivalent of the audience éventuelle (potential hearing) in French law, prior to the reform of 21 April 2006.


Given the timescales provided for, the procedure allows the creditor to secure a bid for the foreclosed property in a very reasonable timeframe.


The proceeds are then distributed to the creditors according to priority, in accordance with articles 685 et seq. of the Code of Civil Procedure. A writ of execution for an irrefutable outstanding debt is required to undertake and require the sale (articles 2035 to 2037 of the Civil Code).