Extension of time to settle balance purchase price

The usual requirement under the Proclamation of Sale is that the purchaser at the public auction is normally required to settle the balance of the purchase price within 90 days after paying the required 10% of the purchase price. The chargor (borrower) must be consulted and his consent obtained if there is any application by the purchaser for any extension of time to settle the balance of the purchase price.

The bank cannot on their own, unilaterally grant the purchaser the extension of time they applied for. Failure on the part of the lending bank to obtain the chargor’s (borrower’s) consent will render the sale of the borrower’s property at the public auction void (has no legal effect and unenforceable) (refer to M&J Frozen Food Sdn Bhd v Siland Sdn Bhd & Anor [1994] 1 MLJ 294 SC).
Even after your property has been sold by the lending bank at the public auction, you will need to monitor the progress of the sale. You will know when the balance 90% of the purchase price has to be paid by the purchaser (90 days from the date of the public auction).

On the 91st day after the public auction, go to the bank to ask if the purchaser has paid the 90% of the purchase price. If the lending Bank refuses to answer your query or give you a vague answer, immediately get yourself a lawyer and tell him the whole story. Your lawyer will know what to do next and he will take care of you from then on. Show him this article if you like.