BUYERS GUIDE TO BUY A PROPERTY AT AUCTION

1.

Identify those property lots which suit your needs and interest you and make necessary arrangement to survey the subject property.

2.

Work out on how much you can afford with your finances at maximum price that you intend to buy at auction. Remember that if your bid is successful, you will need to put down a 5% or 10% deposit (bank draft) immediately from the reserve price and be prepared to ‘top up’ the different of the amount if the final auction price moves up from the reserve price.

3.

Find out the enquires you need. This includes outstanding bills (electricity, water & quit rent, maintenance charges) owing by the owner. Arrange legal assistance either with the Solicitors, State Authority or call the Auctioneer’s office to obtain the information needed and understand the Condition of Sale of the property in order to prepare yourself during the auction day.

5.

At the auction day, bring along a bank draft of 5% or 10% deposit (as stated in the Proclamation Of Sale) of the reserve price, I/C or any other relevant documents and register at the counter. It is not advisable to bring cash deposit. Bidding card will be given to identifying you as a bidder of the subject property. Obtain a copy of Condition Of Sale for your easy references.

6.

For an individual bidder:-

• A photocopy of bidder NRIC card (both sides).

• Bank Draft 5% or 10% from the reserve price with extra cash.

For a Corporation:-

• A certified true copy of the company’s Memorandum and Articles of    Association.

• Bank Draft 5% or 10% from the reserve price with extra cash.

• Form 44, 24 and 49.

• Board of Director’s Resolution.

 For Agent / Representative

• Letter of Authority from the intending Bidder.

• A photocopy of bidder NRIC card (both sides).

• Bank Draft 5% or 10% from the reserve price with extra cash.

4.

7.

Read and fully understand all the terms and conditions of sale. make necessary enquires with the relevant authorities and the developer on the terms and conditions of the consent to the sale herein.

8.

The Auctioneer will start announce the details of the property to be auction and it’s reserve price. Identify the lot of the property that you have come to buy and start raising your card and bid for the property. Remember, the successful bidder is identified as the highest and last bidder once the Auctioneers hammer falls by announcing “calling once, calling twice and the last call –SOLD!. The subject property is successfully sold to the highest bidder price.

9.

Successful bidder of the subject property has to sign the contract given to them.

10.

The contract will then has to be stamped and the stamping fee will be charged RM50.00. The Stamped Contract indicated legal binding documents. You will be advised to collect the contract at the time given to allow you to seek for a bank loan if needed. You have either 90 or 120 days from the date of the auction depending on terms and conditions stated in the Condition of Sale to settle the balance of the purchase price.

Remember! Auctions are just an alternative way of buying property as simple as the above stated procedures.