That is normal borrowers action. I dont think anyone likes their property to go under the hammer if given a choice.

Borrowers pay up some with the hope their financial problems can turnaround.

If the auction is withdrawn before bidding starts, there will be no winner.

If the defaulter wants to stop the auction, he is given a time frame to pay up, otherwise auction will proceed.

This post has been edited by mini orchard: May 24 2021, 08:35 PM

In a private or owners auction, owners need to pay a certain sum as expenses before commencing of an auction. Easily a couple of thousands and no guarantee of a bid. Thereafter, the normal subsale commission for successful bid.

Seldom can owner start the bid with current market price, otherwise no bidders will turn up. Is always start from low but not as low like bank auction.

If there is only one bidder at reserve price, thats it !. Think properly b4 deciding to go for owner auction. It can go both ways....unless the property is HOT.

Do a search to be safe.

I am more worried about the double transfer issue. Check with developer b4 bidding.

Scenario 1...

Chan, the 'intended purchaser' through a simple document paid 400k earnest money to Liew/Shu for the 'purchase' of the said property.

The SnP couldnt be executed due to some disputes in the terms of agreement and Liew/Shu unable or refuses to refund the 400k, hence the private caveat.

The said document is only an 'Intention' and to be confirm with the signing of SnP and stamped before lodging a private caveat.

Therefore it is safer to deal through a registered estate agency who will keep the earnest money as stakeholder pending the signing of SnP to avoid the above.

Scenario 2 .....

The 400k could be a friendly loan by Chan to Liew/Shu and a photostat copy of the title given to Chan as proof of ownership.

There could be some documents signed between Chan and Liew/Shu to repay the debt but unfortunately, it didnt materialised. Chan proceed to lodge a private caveat based on 1 above reasoning to recover his money as loaning money without a proper licence from BNM is illegal aka Ahlong.

Under the NLC, not just anyone can lodge a private caveat because of a 'debt'. One must prove that the 'debt' is related to the property like a stamped SnP.

Liew/Shu made a request to the DG of Land Office to remove the caveat.

Exception is govt related debt like income tax arrears where a Registrar Caveat is lodged to prevent a transaction of the property until the tax is settled or the govt will proceed to auction the property to recover the tax.

***Disclaimer***

This is my personal opinion and not a legal opinion.

This post has been edited by mini orchard: Jun 16 2021, 06:26 PM

If no loan, shouldnt be a problem. Can do MOT after mco. Lodge a private caveat after full payment.

If no cash, then have to decide whether to lose the property or the 10%.

Why would agents stop marketing an auction unit if that is their source of 'employment' income ?

A bidder wants to profit from an auction, similarly an agent wants a winning bidder client. Both have different goals.

Your post #2146 is all about you wanting to buy cheap at auction and NOT above dishonest agent.

This post has been edited by mini orchard: Jul 12 2021, 09:35 AM

Starting bid price is not valuation price but forced sale price where bidders are willing to pay for certain disadvantages ....eg. no viewing and knowledge of the property condition where risk is higher compare to subsale or vacant possession. The reduce price is to compensate for any disadvantages.

If bidding price equal valuation price, bidder rather buy subsale.

Many auctions have concluded during first round where bidder finds is the 'right' price to pay.

This post has been edited by mini orchard: Jul 12 2021, 09:03 PM

Never in the history of any property transactions in msia where banks can form an opinion on the value of a property and is NEVER their job in the first place.

This post has been edited by mini orchard: Jul 25 2021, 12:16 AM

Then is unfair to loan defaulter. He will also incurred additional interest. Not sure the bank is generous to waived.

Right and Left hand also charge interest .... winner for sure.

That is without a doubt.

If the bank forfeit the 10% without extension, whose account the money will go to ?

Better than no forfeiture money. As least someone paid the cost for first round.

Maths ok ?

Many auctions would bring the price to a realistic figure where subsale purchasers would pay a price nearer to auctioned price.

The more auctions take place, the more new investors will come in to grab.

Basically, there are few category of investors. Some are cash rich while others are penny rich.

As long is strata title, there will be monthly fee.

No other better property to buy meh ?

This post has been edited by mini orchard: Aug 5 2021, 08:18 AM

Do you happen to know the owner ?

Like people used to say ...'He can bury anyone with spare cash'

This post has been edited by mini orchard: Sep 4 2021, 10:52 AM

Is not common but there are such buyers around.

Five years ago, I was bidding for a walk-up apartment in TK 1. The reserve price was 150k. Per bid is 2k. First few bids went smoothly. Before I had my chance, one joker came in with 100k up. From there, it was crazy until it reaches 310k.....more than 100%

The good about the unit is on the 1st floor. Very limited unit for sale or shall say none during that time. Mostly are 3rd floor onwards.

Market asking price then was between 180 to 230 depending on floor level.

This post has been edited by mini orchard: Sep 4 2021, 01:36 PM