5 Tips To Buy Court Auction Property In Malaysia
Almost every week there are numerous real properties are being auctioned off in the newspapers. Purchasing an auctioned property can be attractive because these properties are usually auctioned off at prices appear to be way below the market price.
However, it is not easy and there are several things a buyer/purchaser should consider when buying an auctioned property. Here are the useful tips:-
- Inspection on the Auctioned Property
It is best advisable for every bidder to do the necessary inspection on the auctioned property and to conduct the relevant land search to make sure if the property is worth bidding.
- Proclamation of Sale
The most important document in an auction transaction is the proclamation of sale. The proclamation of sale states all the terms and conditions for the auction, such as the details of the property.
The terms of the proclamation of sale will then constitute the terms of the sale and purchase between the charge (the party who applies for the order for sale) and the successful bidder at the auction. Therefore a bidder at the auction ought to familiarise himself with the terms and condition before the bid. If the bid is successful, he will be deemed to be bound by those terms and condition. Hence reading the proclamation of sale is vital.
- Deposit of 10%
The successful bidder has to pay 10% of the auctioned price of the property as deposit at the fall of hammer.
- Purchase by way of Loan or Cash buy
It is important question because the balance purchase price of the auctioned property need to be paid within 90 or 120 days, as the case may be, from the date of auction sale with no extension of time to be granted. Failure to pay the balance purchase price within the period will cause the 10% deposit to be forfeited.
Bearing in mind that in most of the cases it will take more than a month to get a bank loan approved. As such, one must monitor the timing closely.
- Instrument of Transfer
The transfer of property sold at auction is carried out using either Form 16F or Form 16I and not Form 14A in those ordinary sale and purchase transactions.
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