I would like to know ...

I go to high court auction, facing almost ALL PROPERTIES Call off due to new regulation imposed by high court to Bank (3% of selling price need to pay to High court from Bank b4 auction those houses)....

A lot of banks not willing to PAY YET....

1. DOcument more complete ?? high court ?
2. difference ?
3. Advantage & disadvantages ?

Got any website can list out the HIGH COURT Auction house one instead of waiting for agent to feed back ?

This post has been edited by Irresistible: May 23 2012, 08:48 PM

Previously it was 2k but they changed to certain % of the selling price. And it's an auction deposit. Can get back. Just that some banks slow in giving the deposit to their solicitors.

What do u mean by docs more complete?

Difference as in?

Advantages by auction conducted at the court is that all outstanding (maintenance charges, QRA etc) bear by the bank till auction date.

Other than that not too sure..

U mean the 3% , actually the bank can get it back ??

I don't understand why the bank refuse to pay or pay so late...

I m curious to know that , WHY willing to auction the house to HIGH COURT, instead of auction it by themselves ?

I never seen such regulation before...

Usually is just the deposit of 10%.

I prefer auction house rather than high court.

Personal reason.

auction house is better than high court from what i think

One of the reason from auction house switch to High Court because the property got no bidders for quite some time.

Usually High court will pay all outstanding fees and reserve price more cheaper.

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.

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Added on May 23, 2012, 11:12 amNot true. Please read the above.

This post has been edited by michaellee: May 23 2012, 11:12 AM

Thanks for giving info generously


(unlike that michaellee who is stingy with info when asked, but when we don't ask, he likes to shoot rubbish from his mouth )

LOL.. If you want to pick, also pick the post with the correct info. I have actually corrected the info. IDIOT, where is the name of your lawyer? The more you evade the worse your reputation becomes. Unless of course you admit right away you are nothing but a liar and that you made up those imaginary lawyers! It is a good thing that slowly the forumers are now seeing lights and knows you bullshit your way around!

I have never been stingy with my advices and duly given when asked nicely. People like you thinks I owe you enough to provide you with everything. LIAR LIAR! Come on, give me the names of your lawyers! Now that your lawyer has pointed to you it is legal to rent out daily for service apartment but not for others, I lagi mahu the nama of your lawyers! Unless of course they are imaginary! What an idiot! BODOH! Every property you attempted to buy you sure kena cheated by either the banker, lawyers or agents! How much more of a loser can one get? LOSER AND LIAR!

Post more, you entertain me by allowing me to get back at you non stop.

But maybe my info not 100% correct and always welcome new info.



Personally prefer Auction house cause is easier to get compare with High court.

Rather waiting to fight with 20-30 bidders better off with 2-3 bidders.

Hi Alvin,

Avoid conversation with Jalsrix la. That fella spews rubbish and to date had lied about lawyers giving him ILLEGAL advices which he claimed is legal. I have already issued him a challenge to name the LAWYERS (note plural) and until he does, his reputation is in the gutters. I believe he is trying to hide his lack of experiences but yet still want to look helpful by passing off opinions (which he claimed his lawyers have given him) as genuine legal advice. This person is a very dangerous person on a property forum where any purchases would amounts to hundreds of thousands to millions. He should be kicked off a public forum like this one. Cheers.

agreed with michaellee.
please post/share true facts not lies..

u mean auction house only have 2-3 bidders...?
but i've been to auction house approx 10 bidders... *confused*

To be honest, most auction houses properties have less bidders than high court auction and in some ways Alvin may be right. High court auction attracts a lot of bidders due to a lot less inherent risks compared with LACA properties. A hot property will always be hot. The only difference is whether the property can only be sold via LACA or high court. An auctioneer cannot choose the method of auction, only the property, with or without title will determine the type of auction.

Like "michaellee" mentioned, properties with proper title, the auction will take place at either Land Office or High Court.

If not, it'll be at the auctioneer's office or a specified place, aka private auction.

There's no relation as to what sort of auction will attract more bidders.

If the property's hot, even if the auction is held in a cave also there'll be bidders.

oooh i see...
thanks for the clarification...

I think i'm wrong in that part.

How about land office ? Sometime auction take part in land office at government office there.

What's the reason ?

As per what scorgio had said, those with good title will be auctioned off at either land office or high court, but since 99% actually take place at high court, i usually lump them up and say high court.

actually, my agent told me the same thing... He said High court auction is "safer "...

LACA auction banks bear the maintenance, water + eletric bill owe before auction date right? & by way of buyer pays upfront n later claim back from bank, how long does it takes roughly for bank to refund to buyer?

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??

This is the catch. The owner is living there. I have analyze the pro and cons

a) The pros is due to this fact, less bidders/ competitions, easier to get. Price 30% cheaper than current market price, very tempting. The place can easily rent out with positive cash flow.
b) The cons is the trouble to get the current owner out. Agent said issue legal notice once fully paid, then report to police, if still not working then cut the utility.

My question is if it is a guarded and gated higher end condo, will it be easier for us to chase out the owners, say bar the access cards? Get the security guard to disallow the cars to go in and etc?

I am still hesitating whether to bid even i have the bank draft ready with me.

Hi all how do i know the said property auction in High court ? date and time?

Not that easy. As a legal owner, you also cannot cut the electricity and water or lock the gate/ door. Or they can report to the police.
What need to do is to get the court order.

Or else, talk nicely to them, give them some kopi money ask them to move out.

or rent back to them. with lower rental , (but if they can pay your rental, why they defaulted loan earlier?)

Or use some influential people to 'evict' them

or ......

gng condo is easier.
management office will do the necessary, like bar the car access and access to the condo lift, I am talking about highend condo.