Auction Property Forum

https://forum.lowyat.net/topic/1772045/all


There are two types of Auctions. One is known as high court/land office and the other LACA (loan cum assisngment). LACA only when the master title is not split into individual titles or strata titles.

For high court auction, banks will absorb quit rent and assessment as both are required for a transfer to take place. However, service maintenance, late interests varies and you need to read the POS carefully.

Now, this is where it gets interesting. Rightful owner, beneficial owner and succesful bidders have different rights. You will be bidding for the property which means you have no rights to the property at the moment. Bidding for it doesn't mean you will definitely win. Hence you have no rights to knock on the door and ask the "tenant" or the "owner" to leave. Personally, I have knocked on doors before signalling the resident my intention to bid for the property. It will give you a rough gauge of how hard it might be to chase them away later if you did win. Most of the time, if it is tenants residing, they would tend to coperate and some would ask me to rent them the unit once I buy over. I tend to minimise further any damage by giving them the same rent as they are paying to their current landlord. But beware, some would lie and then you need to inform them the real market rental rates.

Caveat is not as simple as you think. You cannot simply lodge a caveat. A caveat would not prevent a transfer, just create more hassle for you to remove it. If you suffer losses as a result of a negligent caveat, you can even sue the person who lodge the improper caveat. for high court cases, normally it is quite safe to buy even though there are caveats. Remember, the banks always win.

You do not need to pay 1% to an agent for auction cases. In many cases, these agents are paid by the banks. A simple courteous note to your agent telling him/her you will need to consult the auctioning bank regarding the agents fees, they would freak out as they would be blacklisted by the auctioning bank. 

Buying auction properties in the past could make money as most would end up 15-20% cheaper than market values. Looking for 30-40% would only happen in undesired locations. but these days, perhaps the market is flushed with money, occasionally auction properties might end up higher than the market value by 5-10%. Why? Auction can be a very emotional event. In the midst of wanting to win, you might exceed your budget.

If you are planning on going to the said auction, I wish you all the best.