Auction properties depending on if it is high court auction or LACA. For high court auction, it usually clear you of everything including unnecessary caveats but excluding government's caveat, eg. IRB, customs, police, etc. Eventually the government agencies will clear the caveats, once they received their supposed share. But I wouldn't touch government caveats with a 10 foot pole even if it is way below valuation. Individual caveats can be removed but takes time, so might be difficult for your financing bank to draw down on time.

Something which I noticed since late last year was that POS for the whole west malaysia high courts seemed to have been standardised (I have only seen POS for high court in KL, Seremban, Malacca and JB). So if it is so, then you do not need to pay the difference at the auction date but to settle the differences within the stipulated time.

Don't get the same bank to pay off as I had previous experiences where the bank ain't in a hurry to pay off and I had to come up with cash. Very bad of the bank.

You can apply the loan anywhere you want. Not just malaysia, as long as they are happy to lend you.

You need your own lawyer to do the transfer. But seriously, you must make sure you have cash at hand in case your bank cannot draw down on time. Or you will lose your RM40k initial deposits.

Yes correct. Most property in KL i believe haven't issues strata tittle yet.

I personally bought a lot of MK land products trough auction and they always haven't issues the strata tittle yet.

So have to ask my lawyer get consent trough the developer.

This is also being done if is sub-sales.

So you are saying that if a property under master title but approval given to the first owner, we won't be able to get the money on time (90 days) because developer can delay us ?

So it is very risky buying auction property ?

Thanks alvin and michael..
I just went to land office to do an offal search today and it is free from any caveat. Means no caveat. Is a high court auction..

But if I used the same bank that auction the property, and it the delay is from the bank itself, why would I be the victim? Once I submitted my necessary loan doc, and once enter the system, everything is show with date. If it is the bank that delay the disbursement of the full sum, is not my fault right? Like u said, bank always win. But win with negative evidence, is a risk for them, isn't?
Ok then I follow your advice to try other bank.

There Was once my fern encounter a case, in which the purchaser of a under con apply to a bank, and the bank rejected the person loan, due to the reason that she/he is staying in Johor and the bank are questiOning why she/he is buying the property in selangor. Weird right? Dunno if the banker SKL the purchaser or it really happen.

Do u advise if I use their panel lawyer to do the transfer? If we're talking about interest here, I don't think we can outrun the bank's terms, right?
Yeah I'm ready with it, worst come to worst I have to deduct it from my renovation budget Lo..hahahah...

Hi, I understand your concerns but I have explained both in PM and in public on the risks of buying properties from auction. It is best to steer clear of such purchases unless you have seen it done before or have plenty of cash to play with.

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Added on April 7, 2012, 2:05 pmOkay, I am going to say something which will surprise you. If you look closely at the facilities agreements, your so called lawyers are actually acting on behalf of the bank and NOT you even though YOU will be PAYING for the bills. It is weird but true. In the sense that if something were to go wrong, your lawyer cannot actually help you. So you do not need to use their panel lawyers for transfer as it is non of the bank business but the vendor can accuse you of picking the wrong lawyer/banker which caused the deal to be delayed and hence penalise you heavily by way of interests or forfeiture of deposits. It can sometimes be a dog eat dog games and survival of the fittest. If you have enough volume, banks and lawyers would usually try to accomodate you. If you are going to see your lawyer once every 5 years or so, don't expect the best of customer services.

I have one single experiences with MAYBANK. I can say out the name of the bank as it is a true case incident which happened some 6 years ago. I bought a LACA property from MAYBANK auction and thought that it would be best to use the same bank so expedite the matter. Loan approval done and ready. But their auction side was extremely slow from missing papers to whatever. Given that I knew the developer quite well, they were even ready with the direct transfer documents (from master to strata) to my name within a couple of weeks from auction. I made a complain to their head of customer services but at the end decided not to follow it up as it may costs someone their jobs. I rather allow these people continue working so that will give me plenty of excuses not to use Maybank. It was delayed by more than 2 months and I had to settle by cash, even though it was entirely their fault.

This post has been edited by michaellee: Apr 7 2012, 02:05 PM

Yeah i'm expecting if i'm using their panel lawyer and not my own lawyer, the interest will be on their side definitely. So you're saying regardless of which lawyer i use, i still need to pay the same amount of fee? Unlike subsale, where if vendor or purchaser tumpang lawyer, then charges are significantly reduce?
Anyway, i will follow your sincere advise! But just questioning back for confusion. Hope you don't mind..

Oh yeah, 1 more thing. The auction that i'm going is under CIMB, and if i'm going to get my own lawyer, do i have to choose the lawyer that are the panel of CIMB?
And panel must be that particular branch, or as long as CIMB?

So initially, the step would be as below:

Before auction
1. Inspect the property at your own will.
2. Do an official search for the properties
3. Register with the licensed auctioneer/ agent/ bank.

During auction
1. 10% of the reserved price by bank draft, with photocopied IC.
2. Go for bidding

After auction
1. Pay the remaining of the 10% from the reserved price - final price by either bank draft or cash.
2. Apply for bank loan. (this can be done before the auction for safety precaution that as if you think your financial statement would be a problem)
3. Engage own lawyer.
4. Wait lawyer to prepare documents
5. Loan approved, sign LO and LA.
6. Sign SPA, and whatever doc that related.
7. And, wait lawyer to process again.

Anything missing or wrong, please fill in for me ya..
Million thanks

Great step by step process. My question

Before auction
2. What's the purpose of the title search ?
3. How many days before auction day do we need to register ? (agent say several days but auctioneer say just go on auction day)

After auction
7. Wait for approval from land office (if leasehold)
8. Wait for approval from developer (if master title)

Can you advise on how to do the official search on property? What is the objective of this task?

Sorry to interrupt but how much is the legal fee for the sales contract for auction property? Is there any? If yes do they calculate using same rate as snp?

Facilities agreement is not the same as SPA. So only one lawyer will be used which will be the lawyer, whom you have hired but must be under the bank's panel and that particular lawyer, you will need to pay them (with discounts if they are happy to give you some) but they will end up as banker's lawyers. Confusing? Yeah, a lot of seasoned players didn't know that even. Most lawyers will not sue banks as they are worried that the bank will not give them businesses later on. But you can always complain about lawyers to the bar.

The auction you are going for is by CIMB. That does not mean you need to use CIMB panel lawyers but rather the panel lawyers of the bank you are hoping to obtain loan from.

As for before auction, it is optional to register with licensed auctioneer/agent/bank. Unless you are getting some kickbacks (not so proper) best is you do not register, as some auctioneers may not be ethical enough and "inform" friends to kacau the auction.

After auction, depending on how the POS is worded, you may or not have to top up the balance of 10%. So far since late last year, I have seen all POS for high court do not require the top up. Kindly advise if any of you have seen otherwise. You do not sign SPA for auction properties but MOC (Memorandum of contract). The lawyer will need to help you prepare the transfer documents. At the same time, you need to look for a bank to do up your loan. Best to use the same lawyer for transfer and loan to prevent delays in communications. For auctions you do need to hassle your lawyers to remind them of the 90 or 120 days. Most lawyers couldn't give jack shit and I have seen a lot of bidders who are not able to complete on time and hence the need to pay cash for the balance. A good lawyer with good follow up will ensure that the delay is minimal. Remember time is of essense in completing such documentations.

Thanks bro for addin up.
The purpose of title search is to check whether the property is under caveat or not, and to reconfirm the vendor's name and details. If the information u got from agent/auctioneer or any third party doesn't match the information given on the search, there is something wrong. So better be safe than sorry.
Actually u can just go on the auction without register as long as u bring the 10% bank draft based on the reserved price. Sometimes agent/auctioneer ask u to register is because they provide services suc as follow up and remind you about the auction or updates if there is any changes. But the main reason behind is that, you register with agent 'A', and when you are the successful bidder, agent 'A' will get commission from the bank. But of course some agent will provide support and guide u on anything regarding the auction, and some will not bother about u, and just claim commission if you had register wit him and u won it. They need your particular to submit it to the bank claimed that you're their client before the auction.

To ensure the title is clean for transfer. As per above, it is NOT necessary to register. Any agents telling you so is trying to secure their commission from banks. And the auctioneer is right. Just go on the day with the appropriate documents will do. Like I said, unless you are getting some kickbacks, there is really no point in registration.

There are two types of auctions, high courts and LACA. For high court, no approval is necessary even for bumi lots. It is transfer straight away without restrictions.

If LACA, then yes, you need plenty of approvals, etc.

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Added on April 7, 2012, 11:27 pmShould be the same. Though for high court auctions, lawyers are more willing to give more discount as less work is needed to complete the transfer.

This post has been edited by michaellee: Apr 7 2012, 11:27 PM

Could you advise on how to do the official title search? Where to do, how much we need to pay, etc???

Assuming I obtain and got approved by bank 'ABC', so I will need to find a lawyer which is the panel of 'ABC' and ask that particular lawyer to handle both transfer and loan agreement, right?
Ok understood! Ya true also, they wil rather lose 1 client like us than the entire bank community! Business opportunity, can't fully blame them also .

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Added on April 7, 2012, 11:37 pmYou need at least the Proclaimation of Sale before u do the search to get full information about that particular property such as lot number, mukim/daerah etc.
Land search can be done publicly in land office followed by state. If under selangor, you need to go shah alam land office, if in KL, then u need to go KL land office. Rm50 per official search. For shah Alan land office, it close at 3.30pm so best to go before that.

This post has been edited by clanzkiller: Apr 7 2012, 11:37 PM

Can you tell us in details how the auctioneer will 'kacau' the auction ? Why do they want to do that ?

Like all my other postings, I will only talk about the proper ways of doing things. For the kacau part, you need to gain more experiences then you understand. I have given a BIG HINT that unless you have KICKBACKS, there is no point in registration.

We are NOT as rich as you to get burned with trying out experiences. Please do contribute your valuable experience for all of us.

Thank you.

It is not about rich or not but learning the right thing. I already said, no need to register. Just don't register la, I mean what benefits do you have with registering your name?

Jalsrix,
What Michael said is true, some informations is best not to discuss publicly. I think he already provide sufficient information for the register part. Try figure it out with common sense and u will get it. Remember this, 'business opportunity, money is evil'.

I have never been in an auction so I am trying to get as much info as possible. Nothing wrong with that.
A lot of these agents ask us to register, thats why I am curious whether this is necessary.

You did a great job with the step by step procedure but unluckily it is not detailed enough and some steps are missing.
Besides, you can expand and update the list ?

More questions.

During auction, who are the ones we should be wary of ?

During land search, what are the things that we should look out for ? (besides govt caveat)





This post has been edited by jalsrix: Apr 9 2012, 04:34 PM