WHY MUST WE CHECK ALL THE OUSTANDING AND CONDITION BEFORE ATTENDING THE AUCTION?

Outstanding maintenance, quit rent, assessment, sinking fund, water, electric and indah water.

Kindly take note that there are many banks in Malaysia conduct auction and every banks normally have different condition. Normally condition of sale varies are from the outstanding amount which covers the maintenance charges, quit rent, assessment or even sinking fund if any. Some banks or financial institution will only absorb a certain percentage of the outstanding amount and some banks do absorb all outstanding till the date of auction. But as for outstanding electric, water and indah water no bank so far has agreed to absorb it.

Occupancy status of the property

Please be aware that all auctions do not auction the property with vacant possession. This means is the responsibility for the successful purchaser to vacate the occupiers if the property is occupied whether is owner occupied or tenanted.

What can we do if the property is occupied?

Before proceeding with the bidding, do pay a visit to the property and check the status of the property and also talk to the occupier to check whether they are owner(s) or tenant(s). Do negotiate with them whether after completion of transfer they will leave the property or can rent back to them. If all these cant work, do appoint a lawyer to issue them a notice and to obtain a court order from high court to vacate the occupier.




Accuracy of the addresses

Do check properly the address printed in the proclamation and always if possible check with management if the property is strata title property whether it is the correct property to be auctioned. Sometimes human error do happen


Check status of developers

Status of developers of the respective property are important as some projects in Malaysia where developers have wound up and left nobody to assist in the transfer of ownership will create problems to transfer later.

Normally when a developer wound up a OA (Official Assignee) will be appointed to take over the job of clarification for transfer but unfortunately some of the project do not have an appointed OA to handle the matter and therefore

Completion period of the whole transfer

Kindly take note that under LACA auction, normally completion will either 90 or 120 days depends on respective banks but all High Court and Land Offices cases completion will be 120 days.

Please bear in mind that most of the LACA will be given extension to complete the sale with interest charged normally around 8-10% per annum on the outstanding amount owed (Depends on Bank) but high court will not grant any extension as per the condition however for case to case basis successful bidder can appeal through court for extension approval and interest to be determined by respective banks.