Just to add on, personally I do not do searches anymore as they are not nearly as useful. High court auction normally clears everything and those with caveats, I noticed nowadays all POS actually puts it down in writing under endorsements. Given the number of auctions I go to, it is quite a significant savings. And if you know the auctioneer well, just call and ask them if they noticed anything in their land search. They need to do a search just before an auction.

More questions:

1. If we have to pay condo service fees from the day of successful bidding, can we legally go and stay (ie. take over) at the unit ?

2. Why do we have to pay the previous condo service fees, sinking fund, water fees etc because that should be paid by the previous owner since he is the one using it. The previous owner owed the management and the management should held the old owner responsible and not new owner.

( Assuming banks don't pay.)

3. New owner should be responsible from the date of successful bidding.

4. What if there is ONLY one bidder ? What will happen ?

5. Where can we get the floor plan ? The developer is NOT helpful and the bank doesn't have it.



This post has been edited by jalsrix: Apr 13 2012, 01:35 PM

4. Then youre the winner . Means you will be buying based on the reserved price.

5. Some layout is with SPA, some are not. For those old house normally no floor plan d. If u need the origin floor plan, maybe can try Majlis perbandaran, or simply ask a drafter to draw your layout Lo. But why u need the old one le? Normally ppl will just ask to draw a new one for extension xD(for landed).

Correct me if I'm wrong

4. What i meant was, will the auctioneer or agents play some tricks to jack up the price if I am the only bidder ?

5. I need to look at the floor plan since I cannot go into the house before deciding to go for the auction.
But most people don't want to give.

This post has been edited by jalsrix: Apr 14 2012, 07:39 AM

No la bro, you see a, when you're the only person in the auction room, how can it be possible that other people will come and disturb you? You're the only bidder inside what...
If you're talking about if there are few people inside, then maybe lo.

Yes, they won't disclose it to you, cause you're yet the owner..
Is a condo or landed?
If landed then ok at least you can climb over the fence (illegal) and do your measurement and draw the layout yourself.
If condo, then you can try search in internet if that property is not that old enough. Some website got the floor plan if you're lucky .

1. I mean can they pay their own people to act as fake bidders to artificially inflate the auction price ?

2. It is condo and more than 10 years, so cannot find in website.

This post has been edited by jalsrix: Apr 14 2012, 05:52 PM

1. I remembered you are happy to register despite me advising not to, to prevent others kacau-ing. But now you are afraid of artificial bidders? why should they do that? If they end up taking the properties, then they had to pay for it.

I remembered you're very secretive and not wanting to reveal any details when I asked you.
So why should I listen to your advice unless there are valid detailed reasons given ?

I am new to auction , that is why I ask whether they have any artificial bidders (collaborate with bank or auctioneer) who don't pay even when they win.

Very simple asnwer.
Because the Bank Lelong it on the condition of "as is, when is"
Meaning you buy it as it is when it is. Any amount owing (whether unpaid TNB bills, sinking fund, etc) all will be paid by the new owner. That's why the bank sell you cheaper at lelong prices. The Bank and the ex-owner are absolved of all responsibilities. Remember this is lelong and not new property.That is the rule if you want to play the game.
Yes you can immediately shift into the house upon signing the S&P.

OK. Thanks for the MUCH direct and straightforward answer !

Great ! That means we can move in (but not do renovation) the house rather than wait 3 months after 100% payment.

This post has been edited by jalsrix: Apr 15 2012, 09:51 PM

michaellee is giving a good advice regarding the registering before auction date. no benefit of doing registration before auction.

I have some doubt about auction sale also. Is there difference between high court and land office auction ? what is the reason behind the auction sale by high court and land office?

More questions:




1. What are some of the reasons auctioneer withdraw auction at the last moment ? (other than owner paid up at last moment)


2. How easy is it to remove any caveat other than the bank caveat ?

ie. S&P was signed with another buyer and bankrupt owner AFTER bank put it on auction


3. Can caveat be put in if bank already put a caveat there ? ie. can there be more than one caveat ?




This post has been edited by jalsrix: Apr 15 2012, 11:21 PM

The condition is as is where is, correct. But most POS nowadays for high court actually reads that the bank will absorb most of the outstandings, inclusive of utilities (this was the case 1 year plus ago). I won't go into the very detail of the law, but if you have a good lawyer, there is a limit to what you need to pay to the management if there is outstandings and the POS clearly states that the bank will not pay for it.

There is no S&P in auction. It is called a memorandum of contract. You cannot move in straight away even though you are the beneficial owner. You are not the registered owner as the registered owner is still in the borrower's name. The bank has been assigned the rights to auction off the property but as the succesful bidder you are not given the same rights. If you choose to break and enter, you will do so at your own risks.

---

Added on April 16, 2012, 12:25 amThe power vested in both high court and land office are similar though most prefers to go through high court. I guess perhaps for some locations without a high court, the bank may choose land office over high court.

---

Added on April 16, 2012, 12:34 am1. Auctioneer cannot withdraw an auction. They need to apply to court to withdraw the auction.

2. The bank would not have caveat. They have charges. The property is charged to the bank. The bank need to remove their own caveat just before they want to charge the property. Without the caveat removal, they cannot charge the property.

3. They can be more than 1 caveats. But "priority" will be given to the caveatable interests and the earliest caveats. Whoever puts in first will have more interests than the next person. Bank will never have caveats unless it is in the midst of charging the property. Banks have charges.

This post has been edited by michaellee: Apr 16 2012, 12:34 AM

i've been reading from page 1 till this last page, and i must say Michaellee has been very helpful with his tips and advice...as much as a property investment myself...i still learn everyday and be reminded of people's advice.

being an real estate agent for my line of work doesnt automatically make me a smart investor, i have paid $$ to educate myself via books and seminars to equip myself with education on how to invest in properties.

always wanted to get myself into auction property investments, and besides learning just like how everyone else first started learning something new...my advise is read as much as u can, research as much as u can...and due to red tapes & time efficiency with so many parties involve in transaction a property (lawyers, developers, bankers, etc).. therefore the best is to have cash ready for auction properties.

we may hear excuses from people say not enough capital, no time, etc...but if there's profit to make...an excuse is just to give us comfort on our fear & laziness. With right mindset, the right mindset will go all out to raise money or be ready to grab any profitable opportunities.

for those new thinking of buying any property out there... most basic thing to remember is:-

1. don't kena CCRIS (means make payments on time)
2. educate yourself to make more money (capital comes from here)
3. learn and follow the money jar system
4. wanna take more loan? dont forget to pay more income tax.. if u avoid income tax..no banks will lend u money
5. spend some money on property investment education rather than getting burned
6. make friends with bankers & lawyers..

last but not least, i cant speak for other agents out there... but the reason why some bidders have to pay 1% commission to agents is because there are some auction property that the banks dont pay us any professional fees... agents are humans & have the same commitments like everyone else...we need to bring food to the table too =)


anyway keep up this good healthy discussion... i've already achieved 1.2mil in good debt...aiming for at least another minimum 3mil-5mil in loan..

---

Added on April 16, 2012, 3:47 ami've already on my 2nd property on loan...if any of u out there has some advice on how to go around the system for buying the 3rd property without the hefty 30% downpayment...i would love to hear & learn from your experience.

cracking my head now on how to buy 3rd property

This post has been edited by golfphunk: Apr 16 2012, 03:47 AM

how will the bank know if somebody avoid income tax ? do they phone up income tax to check our files ?

regarding the caveat and title or official search, i think the search is really troublesome as to when the auction is called off, the search will just be a waste. Usually auction will be called of the very day on the auction date. Any way to get this for free?

This post has been edited by kurtkob78: Apr 16 2012, 09:36 AM

What are the reasons the auction are called off ? Nobody have given me any reasons yet.

Some agents have already done the search but you must pay them commission once successful if you register with them. No such thing as free.

from what I know called off because the owner paid or settle the unpaid monthly installment. maybe there are more reasons for the called off. maybe someone more experience can share with you.

If say I win any auction and pay by cash, how long will it takes for all the paperwork or procedure finish and the house is legally mine?

This post has been edited by kurtkob78: Apr 16 2012, 10:28 AM

Hi Michaellee, thanks for clarifying.
But since the bank holds the title to the property and a copy of the s&p and the current owner defaults on its payments, couldn't the bank declare the owners copy of S&P null and void? reason being he/she defaulted on payments and get a court order to "seize" the property for auction? i tot this was the way the banks do it?no?

if u avoid paying incometax...that shows that u are earning less than RM30k per annum..

then u are limited for loan range u can get