Step by step guide on Buying AUCTION property in Malaysia???

This website is damn good: include all the auction/ lelong = http://www.auctionnetwork.com.my/

2 types of AUCTION:
1) LACA (Loan Agreement Cum Assignment) auction – auction done by banks for properties without individual/strata title. (5 % deposit, 90 days)
2) Non-LACA auction– auction done through High Court for properties with individual/strata title. (10 % deposit, 120 days)


1) Inspect the house prior to the auction date. ( Make sure it is vacant and break in if necessary to check the condition if no occupants)
2) Prepare a bank draft or banker’s cheque equivalent to 10 percent of the reserved selling price.
3) Check any outstanding bills like assessment, quit rent, maintenance charges or utilities bills that have yet to be settled. The ways of settlement are stated in the proclamation document of each auction property. You can get a copy of the proclamation document from auctioneer or property agent appointed by bank at least 2 weeks before the auction date.
4) Successful bidder is normally given 90 to 120 days to settle the balance of purchase price. ( Stated in the Proclamation of Sale)
5) Prospective buyer has some kind of financing ready like having some other property to charge to the bank for ready financing in which case the purchaser would be able to purchase with CASH.
6)Beware of syndicates that operate and ask you for money to stop them from bidding. IGNORE THEM and FFK them.

SOURCE: http://reijb.com/must-know-auction-property/
An example of a clause in a Condition of Sale which illustrates the risks a bidder must assume when he purchases a property, reads as follows: “The property is sold on an ‘as is where is’ basis without vacant possession subject to (a) all express and/or implied conditions, restriction-in-interest affecting the Master Land and that which may be imposed/endorsed on the document of individual strata title to the property upon the issuance thereof, (b) all easements, covenants, charges, caveats, liabilities, (including but not limited to liabilities to the local authorities incurred but not ascertained and any rates made but not demanded) and any adverse claims in respect of the Property; and (c) all tenancies, lease, occupiers and rights (if any) of any tenant or occupier, subsisting thereon or therefore without any obligations arising to define the same respectively.”
Lease Hold vs Free Hold
THERE are several major distinctions between a freehold property and a leasehold property, among which are:-
(a) an owner of a freehold property holds the title of the property in perpetuity. He is the owner of the land and the building erected thereon. When a buyer purchases a freehold property from a developer, the developer will execute a memorandum of transfer to transfer the property to the purchaser;
(b) an owner of a leasehold property is not the owner of the land upon which the building is erected, but is a lessee of the land for a period varying from three years to 99 years (the maximum period of lease permitted by the National Land Code). Usually, when a purchaser purchases a leasehold property from a developer, the developer will construct and sell the building to the purchaser and the landowner will create a lease in favour of the purchaser by way of a memorandum of lease;
(c) in the case of a freehold property, there is no restriction in law on the number of owners who can be registered as proprietors; and
(d) in the case of a leasehold property, the National Land Code does not permit land to be leased to two or more persons or bodies, unless they are trustees, or executors or administrators of an estate. This would mean that in the event there is more than one purchaser of a leasehold property, only one of them can be registered at the land registry or land office as lessee of the land. However, they may agree between themselves as to who shall hold the land as trustee for both of them or they may even agree that both of them shall hold the land jointly as trustees for both of them, to overcome the restriction in law.

1 comments:

Thank you for sharing such great information.
It is informative, can you help me in finding out more detail on
steps to buying a house.