Short answer. Yes. Article 2116 requires the pledgee to promptly advise the pledgor or owner of the result of the public auction after it takes place. This duty is not optional — it is a statutory obligation imposed on the lender as a matter of transparency after the sale.
What the law says
After the public auction, the pledgee shall promptly advise the pledgor or owner of the result thereof.
Civil Code, Article 2116 — Notice of the Result. Read the full provision →
Why the notice requirement exists
When a pledged item is sold at public auction, the pledgor has a direct financial interest in the outcome: the sale proceeds are applied to the debt, and any surplus must be returned. Without notice of the result, the pledgor cannot verify that the correct amount was collected, that it was properly applied to the outstanding obligation, or whether there is a surplus they are owed. Article 2116 ensures that the pledgor is not left in the dark about the disposition of their own property, even after it has been sold to satisfy a debt.
Who must be notified and how promptly
The statute says the pledgee must advise the pledgor or owner. This matters when the person who pledged the item is not the same as the person who owns it — for example, if someone pledged an item on behalf of another. In that case, both the pledgor and the actual owner have an interest in knowing the result. The timing requirement is promptly, which means the notice must follow without unnecessary delay after the auction concludes. The pledgee cannot sit on this information for an extended period.
What the notice should tell you
While Article 2116 does not prescribe the exact contents of the notice, the purpose of the requirement is to inform the pledgor of the auction result. This would logically include the price at which the item was sold, the date of the auction, and the identity of the buyer if relevant. With this information, the pledgor can compute whether the proceeds were sufficient to cover the debt, and whether a surplus is owed to them. If the proceeds fell short, the notice also starts the practical process of determining what remaining balance — if any — is still owed on the underlying obligation.
What to do if you were not notified
If your pledged item was auctioned and the lender has not informed you of the result, you have the right to demand that information. The statute's duty to advise is not contingent on you asking — the pledgee must provide it without being prompted. Request a written accounting of the auction proceeds, the amount applied to your debt, and whether there is a remaining balance or surplus. If the pledgee refuses or ignores the request, that failure to comply with a statutory duty is a valid basis for legal action. A lawyer can help you enforce this right and verify that the auction was conducted properly.