Dear fellow sifu,

Just wanted to get some opinion as I am planning to purchased an auction property for my dad ( old terrace house only). I really have no experience regarding auction. So far I have ask my lawyer to do a land search and I have submitted my documents to the bank for loan approval. Bank says ok but still waiting for the lawyer's reply.

Is there anything I should be aware off?? Really sounds scary la so far after I read the terms and condition for auction. Hope some sifu can guide me.

Thanks in advance

I believe there is a threat on this.
Could you try to search for it.

You could get tons of info from there

are you merely in the stage of "planning" to buy or already sucessfully bidded?

well, if u r still in the early stage of "researching", do proper land search, site visiting to ensure condition of the Property as well as "to know" the tenants.

if u were a successful bidder, the auction process will be simpler if the house comes with a title (same still under master title), as every important documents will be safely placed in the possession of Land office or Court, lawyers just need to do the necessary at the end to get Bank to release payment, not so hassle transaction.

Just monitor closely the transaction, follow up promptly with ur lawyer. good luck!

Thanks for the advice guys. Appreciate it.
I haven bid yet as the auction date is next month. I went and saw the house already. A bit old but I dont mind la. But saw some people staying inside wor. Auction property still can have tenant??

yeah its possible they're finishing their term

heard some people went to auction. managed to bid, paid the deposit. but in the end, the children or maybe the 'people that being owed money by the seller' can caveat the property.

what happens then? anybody know whether can get back deposit?

From what I heard , thats why we do land search make sure no caveat etc...Just worried got other problems besides that. Anyway want to try for experience only la. Will let u guys know hows the process after that.
Anyway got not much budget so don think will win the bid anyway.
Coz the way I see it, if buying from auction, the property must be cheaper by at least 30-40% below market then only worth going through the hassle and take the risk. Estimating 20% out of the 30-40% u saved to pay agent, fix up the house, lawyer fees etc etc. Never know what out standing bills some more.

If cannot get 30% below market then I wont go for it la. Let other crazy fella buy it.

this reason alone, you should stay away from the property
if you insist, talk to the people staying inside politely, tell them that the property is being auctioned. see if they have the intention not to leave. it is troublesome to vacant the people in there.
good luck

Really ah?? How la to get rid of tenant b4 auction?? Do they have the right to stay there in first place since they practically dont owned it anymore??? Aiyo scary la like that. Can ask them to leave after i have successfully bid for the house??

you can ask them to leave, but whether they leave or not is another story...even if you are the legal owner of the property, what are u going to do?

lawyer latter? report police? go ahead, they are just not moving out

worst case is when there are woman and small kids, they cry and beg you dont chase them out because the husband has gamble all their money and cannot afford to pay the bank thats why the house got auction. are you going to mercilessly continue chasing them out?

Means they also cant do anything if i ask contractor to totally renovate the house when they r staying inside there?? I tile whole house slowly, remove electricity, water etc.. sure they will move out by then right..

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Added on February 28, 2011, 8:53 pmActually I went and saw the house. Dont look like malay family when i read the Proclaimation of sales, the actual owner is a malay.. Can I go talk to the tenant. I really confuse as , if the owner got a tenant sure he can afford monthly repayment what..My assumption only la..

But Property101, I really appreciate ur advice and views. really

This post has been edited by henryhing: Feb 28 2011, 08:53 PM

If the Auction property... usually it stated 'as is"

I encounter same situation. However I'm lucky, they willing to move out.

Another note. Please prepare some cash to pay out pending bills.
Potientially to grow to a big sum

What sum must pay??

check the fridge, make sure got no dead body inside. like the auction condo last time, the new buyer had a free *gift* in the fridge.

Yea you really have to ask yourself why the bank is not selling it the conventional way, or keeping it as an investment.

Know the market first.

Nowadays too many uncle aunty bid the property to a price way beyond market price, so wat's the point?

Thanks guys.. Wah buying property from auction really stress. Now only realise besides the 10% & lawyer fees, I must pay 1% agent fees as well. Coz I thought only when selling or renting out must pay agent fees.
I really hope got no dead body la....If got i quickly throw out of the house then only report police la...

hahahaha.. classic case of auction property... n now everyone remembers it..

not allow to view auction properties... how to check d fridge..?

i'm not discouraging you from going for auction property, but want to make sure you are aware of all the risk before you go for it.

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Added on March 1, 2011, 7:25 pmSome banks will offer to pay for the bills until the date of the property being auctioned off

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Added on March 1, 2011, 7:27 pmright, sometimes a property will be bid till higher than market price. either the bidders are really getting too emotional or in they really cannot find another identical unit in the market.

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Added on March 1, 2011, 7:29 pmSuggest you invest in a book before invest in a property
http://www.bookplanet.com.my/index.php?tar...s&product_id=59

This post has been edited by property101: Mar 1 2011, 07:29 PM

An auction property is
- Sold on 'as is where is' basis.
- Doesn't guarantee delivery of vacant possession.
- Can be withdrawn from auction anytime b4 the session begin.
- Caveat = Cannot get bank loan, must pay balance with own money.