Pending bill as follows
- Electricity
- Water
- Indah Water
- Accessment
- Quit Rent
- TM or Maxis fixed line ??

Goodness gracious..But heard that cukai pintu and tanah will be beared by the bank auctioning the property.. Is it true??

Differ from case-to-case, bank-to-bank.

Ultimately, grab a copy of the POS & read from the 1st letter till the last sentence. There's no shortcut.

addition to scorgio.
I understand there is High Court Auction and Bank Auction.
Not sure how different are they

Usually property already with title will take place at High Court or Land Office.

Property without title will take place at auctioneer's office or a designated location.

Mine is in Jalan Duta high court. What to pay attention fron the POS???

POS stands for Proclamation of Sale.

If you don't know what's that, suggest u quit on auction property b4 u dig urself a big hole.

Agreed!

There are two types of Auctions. One is known as high court/land office and the other LACA (loan cum assisngment). LACA only when the master title is not split into individual titles or strata titles.

For high court auction, banks will absorb quit rent and assessment as both are required for a transfer to take place. However, service maintenance, late interests varies and you need to read the POS carefully.

Now, this is where it gets interesting. Rightful owner, beneficial owner and succesful bidders have different rights. You will be bidding for the property which means you have no rights to the property at the moment. Bidding for it doesn't mean you will definitely win. Hence you have no rights to knock on the door and ask the "tenant" or the "owner" to leave. Personally, I have knocked on doors before signalling the resident my intention to bid for the property. It will give you a rough gauge of how hard it might be to chase them away later if you did win. Most of the time, if it is tenants residing, they would tend to coperate and some would ask me to rent them the unit once I buy over. I tend to minimise further any damage by giving them the same rent as they are paying to their current landlord. But beware, some would lie and then you need to inform them the real market rental rates.

Caveat is not as simple as you think. You cannot simply lodge a caveat. A caveat would not prevent a transfer, just create more hassle for you to remove it. If you suffer losses as a result of a negligent caveat, you can even sue the person who lodge the improper caveat. for high court cases, normally it is quite safe to buy even though there are caveats. Remember, the banks always win.

You do not need to pay 1% to an agent for auction cases. In many cases, these agents are paid by the banks. A simple courteous note to your agent telling him/her you will need to consult the auctioning bank regarding the agents fees, they would freak out as they would be blacklisted by the auctioning bank.

Buying auction properties in the past could make money as most would end up 15-20% cheaper than market values. Looking for 30-40% would only happen in undesired locations. but these days, perhaps the market is flushed with money, occasionally auction properties might end up higher than the market value by 5-10%. Why? Auction can be a very emotional event. In the midst of wanting to win, you might exceed your budget.

If you are planning on going to the said auction, I wish you all the best.

Good info michael.

Agree with you. I got mine, 3-5 years ago around 20% below market price.

Well said, mate

i have successfully bid for 2 props in auction. and have turned out ok for me at the end.
1) owner refuse to shift out.... when they did.6mths later...they remove everything incl. the grilles and awning. luckily didn't sabo the plumbing. also had to pay syabas 900+ for unpaid bills and 800+ for TNB. if not cannot get supply .( ()(*&^%$ blooddy bullies)
should have made a rquest to syabas and TNB to disconnect supply, not risk serious demage to hse.
documents took 1 yr to complete, lucky had prepared with cash to stand-by, if ask extention of time bank will charge interest on outstanding 6-8%pa. and have to pay for 3mths inadvance.
2) next unit bought 40K vacant . documents still in process but paid in cash first. renovated 10K and rented out. rm300...ROI 7%

do yr homework to know the market ....have cash in hand for unseen expenses..

Outstanding check for below:
Land Office;
Local Authority e.g. DBKL, MBSJ etc..;
TNB;
Syabas; and
Telekom

House issue check for below:
Termite;
Water Piping;
Leakage of water;
Electrical Wiring; and
Wall and Floor Tiles

Housing Area got floating? If so please leave it..

normally for auction, u would be able to view the inside of unit. if u can mostly the unit is vacant/abandoned, so unit would be in verybad shape.
i would set a "target price" apprx.30% below market of that area. cos u have to take it that a huge budget (CASH) (not more then d 30%) to renovate the hse.
but if u like the location slightly higher then add in the reno cost to get same market would be safe.
on top of all this the stress to get documentation done ..ohhh the bank laywers can delay and no panelty for them but the burden on buyer.

No doubt the bank lawyers can be quite efficient at delaying you (the longer they drag, the more interests they can charge to the previous borrower) and sad to say, I personally have been given first hand experience with Maybank. I was rather inexperience then and thought that by using Maybank as my bank, I could save time but I was wrong. being inexperience, I had to pay the balance post auction 120 days with cash. Of course I do not allow it to happen again. There are many ways to protect yourself and I am sorry I shall not share the methods and the best person to give you advice is of course your lawyer.

BTW, for auction properties I read someone paid RM800 for outstanding TNB bills. Actually for. TNB you do not need to pay. All you need to do is to create a new account. They would not blacklist you for other people's outstanding. If you have problems with that, feel free to contact Che Khalid. I am sure he will be happy to assist you. hehehe

Oh goodness ur reading or iQ must be poor..I mentioned POS few times. U said to read the POS properly..What to read that is confusing in the POS??? Address, plaintiff, defendant etc..What specifically is deceiving in the POS must read from begining to end without missing a word???

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Added on March 2, 2011, 7:55 pmNow this is the writing of a person with knowledge..Not flamming people without reading properly. There is vast difference between what is POS and whats to read from POS...

Thanks Michaelee

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Added on March 2, 2011, 8:20 pmWent for auction today..reserve price 486,000..Loss to one bidder who got carried away who won the bid at 700,000. Still cheap for corner house in subang jaya if for own stay but for investor its not worth it. Anyway the owner of the property turned up and pleaded that the property to be withdrawn for some reason which the judge & lawyer didnt accept. Really sad to see the owner in his 50s or 60s pleading for court to give him chance to withdraw the auction. Said he is still staying there and no where to go.. My heart suddently felt sad. But anyway dont think the winner of the bid should celebrate as yet as I believe the owner whom is also a tenant would just pack and leave like that. Believe he would file another case in the high court...will be messy if thats the case

This post has been edited by henryhing: Mar 2 2011, 08:21 PM

For people who're lazy to do their own homework.
Why should I assist?
It'll be good to have more ppl dig themselves a hole & I get the chance to gain from their losses.

I always asked my friends who wants to try their luck with auction to go and test the water. Set the budget a bit lower to get a feel. Owner coming to auction has been a trick of the book from ages ago. Unfortunately you should not sympathise this fella. Afterall, he did not pay the bank. Everyone has their own problems.

Once an auction property has gone through the hammer in high court, there is no way the borrower can reverse unless of course if he can prove there are irregularities. he might have a fighting chance if he has valid reasons before the auction.

Thanks michaelee.. I really did learn alot from this auction...No wonder many people prefer to buy from open market rather than auction. Less Ma Fan...hehe..

OMG Scorgio...can't believe u la..NVM thanks anyway..

People who truly makes money from properties are those who purchase from auctions or distress properties. It is a simple equation of higher risks higher return. Trust me, the first auction that you have succesfully bid for will only spur you further to look at other auctions. The only subsale deal I have done are those who have owed quite a bit of money. If you know your way around, "people" will tell you which properties are in distress. I hope I won't be showing off by saying this. My average capital gains in the past 5 years base on acquisition price against my selling price has been slightly over 100%. My yield against total acquisition price and incidentals (purchase, renovation, legal, finishings) is in the region of 14% and my ROI is nearly 30%. Impossible?

Good luck to you and wishing you all the success in properties.