Wednesday, September 2, 2009

Auction FAQs

What is a Public Auction?
A public auction is the sale of goods or property to the highest bidder. Auctions are a common and accepted way for banks and other financial institutions to sell properties secured to them when their borrowers default in the repayment of their loans.

Some auctions are conducted by the courts; others are by the banks themselves at the auctioneer's office.
Who conducts the auction?
A licensed auctioneer is appointed to conduct the auction.
How are auctions publicized?
3 general ways:
  1. Newspaper, at the subject property.
  2. The auctioneer will prepare a Proclamation of Sale. This is a notice that gives details of the property such as its address and location, reserve price, descriptions, time and venue of the auction.
  3. Proclamation of Sale will usually be published at least one week before the auction date.
Where and when will the auction be held?
The auction is usually held at the auctioneer's office. In order to participate, intended bidder should first register with us 2-3 days before auction date and then request for relevant information about the auction property.
How to get my ideal property through auctions?
You can search through our web site database for the properties you require, as access is currently Free Of Charge. If you came across auction properties that is not in our web site through other channel, please do not hesitate to call us directly as we will find out more information for you.
How do I participate in an auction sale?
Check with us! We can provide you FREE guideline on how to go through the whole auction process. Besides, advices on necessary checking on the action property will also be given.

First you have to know which property that you are going to bid. Always inspect the property before the auction. If you need help, always contact us to find out more details about the property physical conditions as well as title particulars.
What are the general conditions?
You have to be a Malaysian in order to participate for the auction sale in Malaysia.
Who to bear the arrears or owing of the property?
Kindly let us assist you to look into the Conditions of Sale, as each bank might have different policies on Conditions of Sale. Arrears normally include Quit Rent, Quit Assessment, Maintenance Charge, Sinking Fund, Electricity Charge, Water Charge, and sewerage charge. We will try our best to inform you on costs (including hidden cost) that is to be borne by you so that you will have a clear budget on the purchase price that you are going to bid up to.
What else should I prepare?
Normally bidder should prepare a 10% bank draft made payable to the subject bank. You must also seek advice from banks for your financing if you require a financing for the balance purchase price. (Also let us help if you require assistance on housing loans packages)
What do I need to bring to an auction?
You need to bring along:
  1. Original Identity Card for identification,
  2. a bank draft for ten percent of the reserve price,
  3. sufficient funds to pay the 10% for the difference of purchase price and reserve price.
If you have to authorize someone to bid on behalf, please enclose a photocopy of your Identity Card and a letter of authorization. For purchase under company name, please contact our hotline.
What happen if I did not get the highest bid?
Your bank draft together with your Identity Card will be returned to you on the spot after the auction.
What happen next after I successfully purchase the property?
You will on the spot sign a Contract of Sale agreement between you and the Assignee Bank / Financial Institutions / Chargee as an evidence for your payment of 10% deposit.

If the purchase price is higher than the reserve price, you are then required to settle the 10% of the difference by cash or if the amount is big, by bank draft.
When do I gain ownership over the property?
Upon settlement of balance purchase price and perfection of transfer, please consult your solicitor for ownership of the property.

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