Not all covers. Refer to POS. They would specify it.

LACA=Private auctions.
Non LACA=High Court or Land Office.

High court auctions, the reserve price round up and bid size is determined by judge and is usually set quite high to speed things up.

LACA cases vary on case to case basis. The best is to find out from the COS (condition of sales). If still unsure, call up the auctioneer to clarify as to which party will bear the maintenance cost. Some maintenance cost might add up to tens of thousand. If you are not careful, you might end up paying for the property at a higher cost. Worse, you'd have to fork out additional sum upfront which you might not have.

In cases where maintenance cost is borne by the bank, it is a normal practice to pay off the amount owing first and claim it back from the bank later. It's not compulsory to do that but it will quicken the transfer process, whereby sticking to the dateline is crucial.

The duration of refund varies. Some banks are quick to pay up but some are very very slow to release the money. I have one case which is into the 8th month now and still waiting...

This post has been edited by beandk: May 23 2012, 11:48 PM

Not necessary true. Though High Court auction, most of these are being borne as the POS are standardised. Best to refer each individual case accordingly to their POS.

[quote=michaellee,May 23 2012, 11:11 AM]
Totally wrong advice mate. High courts deal with properties with proper title or those that has already been stratafied. Auction house deals with master titled properties, or properties whose titles have yet to perfected.

Depending on the security documents the bank has on the borrower, they will dictate on how the auction should be carried out. Even if the property has been stratafied but the title has yet to be perfected, then only LACA can be done. High court will not accept such properties. In fact LACA is not without risks and if anything, anyone who is inexperience should avoid LACA and go for high court auction only as the risks are a lot (and i mean A LOT) lower for high court auction.

1 year plus ago, a lot of high court auctions do not pay for outstanding fees. It is only recently that they standardise the POS across west malaysia, that we find POS telling us the bank will pay for outstandings inclusive of maintenance and utilities. If you read National Land Code, the bank is NOT oblige to pay such outstandings. They are required only to pay quit rent and assessment and anything that the government wants, not private.

Valuation is not cheaper on high court. It is the same. House A will cost X amount of money in both LACA and high court. Valuers will give two values on a property. OMV (open market value) and FSV (forced sale value). FSV is usually 10% off the OMV.

very well said. what about auction in pejabat tanah?

pejabat tanah and high court auction is the same.

Actually there are pro & cons to LACA and NLC auctions, but generally I agrees that NLC aka highcourt/Land office auctions are better as the titles are charged to the bank. So meaning when you are successful in NLC auction the ownership of title will be directly transferred to your name, hence you only need to pay only once on the legal fees.

As for LACA (Loan Agreement cum Assignment), if the title yet to be issued you'll need to pay the legal fees for re-assignment and later when the title is issued you will need to pay another fees for transfer.

But for NLC auction there is a risk where the title is caveat by an unknown individual or organisation. If so you'll have a pretty hard time to clear the caveat or even complete the sale. If you can't complete the deposit paid initially will be forfeited as there will no extension of time for NLC auctions.

On the other hand, LACA have no such risk cause the title is not perfected and if you can't make it in time to complete the sale you can apply for an extension of time (normally comes with interest chargeable)...

If you buy high court auction, one should be prepared to have cash. Even if there are no caveat, sometimes, it does take time to do the drawdown from your end financier.

LACA also depends on bank, most banks would allow extension, but there are some who might be recalcitrant.

I think both high court and public auction need a lot of cash. At least 20-30% of the reserve price.

thanks all for replying, i went for my very 1st auction & came back without the house... damn gan jeong but then its a good experience,.

Experience is a must. I go 10 times also doesn't mean i can get even 1.

To not waste time, i usually set my budget 1st and research see that property will got a lot bidders a not.

[quote=mzmz,May 24 2012, 12:27 PM]
[quote=michaellee,May 23 2012, 11:11 AM]
Totally wrong advice mate. High courts deal with properties with proper title or those that has already been stratafied. Auction house deals with master titled properties, or properties whose titles have yet to perfected.


[/quote]


Auction house ,with Master TITLE / TITLE not yet perfected.

What's the problem with this ?? Can not sell out to other after this ??

You can sell what. No problem. Just need to do reassignment instead of charge.

Heard from ppl say that court will confirm that property is empty, inside resident will kick out b4 auction, is that true?

Auction house not responsible vacant possession?

Pls correct me, but pls dun shoot me

As it where is basis. No guarantee of vacant possession.

i am new in auction property, appreciate if any experienced forumers can share. recently eyeing on a high court auction

1) i do not have enough time to do the land search, but confirmed with a few porperty agents that there is no private caveat lodge on the said property, so could it be trusted? One of the agent said if got caveat lodge, they have their way to remmove the caveat, but didnt explain how they can do it? thru legal way or illegal way???

2) i heard from my friend that the owner of the auction prop/ or other cash rich may pay cash for interested bidders to leave the auction place, i.e. high court. Is this considered "corruption" and illegal? Some agents request to share the money, if any, if we choose to take the money and walk out from the high court, is this the common practice?

3) I heard that the owner might apear in the High Court to bid his/her own property? Can the owner do that? why he doesnt want to setlle 1-2 months instead of buying 10% bank draft to try his luck? what are the hidden reasons that motivates an owner to do so?

4) what is the implication if the owner do not settle the TNB bill for more than 10 months, and maintaince fee for more than 5 years, and he still live in the condo? what are the key things that we need to take notes when facing this situation?

1) dont trust agent 100%. ask them for proof

2) owner paying the bidder to leave the auction - not probably due to him/her having money issue. other bidder paying possible. Ulat trying to cheat u also possible

3) no point owner go in to bid. better settle his/her loan with that deposit

4) possible owner dont pay anything during his stay

2) owner paying the bidder to leave the auction - not probably due to him/her having money issue. other bidder paying possible. Ulat trying to cheat u also possible
(I was told not everyone going to auction are genuine, but for high court case it is more genuine, as u need 10% bank draft as entry ticket, and only 1 person per bank draft is allowed to enter the high court, either the bank draft issuer or the appointed agent but not both)

3) no point owner go in to bid. better settle his/her loan with that deposit
(I do not know why owner want to bid, maybe his/her intention is to jet up the price? with the higher price most probably can selltled the loan plus some surplus go into the pocket, instead of let only 1 bidder to get it at the auction reserved price??? Could it be the reason?)

1. your lawyer can remove the caveat.

2. just stick to your own target price if u really like the prop, they cant pay everyone. if they really already paid lot of $ (total costs), u hv higher chance to win. dun tell/show them u r interested in this prop. register quitely, avoid someone stand beside or behind u. dun show them the bank draft/signage etc.

3. can be many reasons. maybe the prop is joint name but both not in good term (eg divorce). maybe the other join name going to bankrupt, maybe the owner owe lot of $ to bank/maintenace fee ++ and try his luck to win back the prop with lower costs. maybe the owner is the peroxy for the bank to jack up the price etc. haha, they r many possible reasons and conspiracy theories here.. dun take it seriously..ofcoz they must be some valid reasons to do that.

4. pls study the POS carefully, bank usually will pay the maintenance fee (some bank just partially eg maybank, public, cimb etc). go to management office , tnb to check the total mgt fee and utilities and decide yourself. if owner still stay in there, my advice is not to bid, u hv trouble to chase them out later.

This is what i cut and paste from the COS, they only have in Malay launguage version:-

Plaintif atau Peguam Plaintif hendaklah dalam tempoh empat belas (14) hari selepas menerima baki harga belian.

i) Membayar semua bayaran yang tertunggak kepada pihak Berkuasa Negeri atau pemheri pajakan (jika gadalan
yang berkenaan adalah gadaian ke atai pajakan| dan perbelaniaan-perbelanjaan lain (termasuk cukai tanah,
cukai pintu, caj perkhidmatan (iika ada) dan bil utiliti yang tertunggak setakat tarikh lelongan) yang didapati
wajar oleh mahkarnah untuk dibayar kepada Pihak Berkuasa Negeri atau mana-rnana Pihak Berkuasa Tempatan.

ii) Memberi salinan-salinan resit untuk pembayaran perbelanjaan-perbelanjaan di para (i) di atas kepada penawar
yang Berjaya

The auction lawyer explained to me that the "Caj perkhidmatan" is referring to monthly maintainance fee, can anyone clarify this, as it is important, the outstanding maintaince fee is closed to RM50K.

Thanks for your sharing, Lucerne, i like Lucerne in Switzerland, very beautiful and relaxing.

May i know in what circumstances the lawyer can remove the private caveat and in what situation can't??