HOME  -    PROPERTY ADS   -   DISCUSSION FORUM   -   REALTORS   -   LINKS    -   CONTACT US



Realtors and Real Estate Agents - Sign Up for Free Account at Property.net.my >>


Malaysia Real Estate
Malaysia Real Estate Portal
 
 FAQFAQ   SearchSearch   UsergroupsUsergroups   RegisterRegister 
 ProfileProfile   Log in to check your private messagesLog in to check your private messages   Log inLog in 

Purchasing property from Bank Lelong

 
Post new topic   Reply to topic    Malaysia Real Estate Forum Index -> S & P and Legal Issues
View previous topic :: View next topic  
Author Message
pastecopy



Joined: 13 Nov 2005
Posts: 14

PostPosted: Sat Nov 26, 2005 11:36 pm    Post subject: Purchasing property from Bank Lelong Reply with quote

Hi,

I gonna buy a property from a Bank Auction. What are the precaution during the auction and procedure? Any experience buyer here Smile?

I was being told that:

1) Must bring along a bank draft worth 10% of the base auction price.
2) Bring additional cash just in case the bidding ended more than the base auction price.
3) There will be a representative bank's lawyer during the auction period as witness.
3) After successfull bidding, we need to of course give the bank draft or any additional surcharges and a photostate copy of IC.
4) Sign a "contract" to prove that you are the winner and etc.
5) After the contract get stamped, you need to pay 2% commision to the agent upon getting the original contract.
6) After getting the contract you can go for bank loan.

Pros:
1) You can possible purchase the property under the market price.

Cons:
1) Manipulated auction. Agent and bank may conspire.
2) You need to pay twice the "10%" downpayment. First, you need to pay 10% of the final bidder price. Then, another 10% to get a bank loan Sad.


Any other you guys need to add??? hahaha
Back to top
View user's profile
taq



Joined: 17 Oct 2005
Posts: 53

PostPosted: Mon Nov 28, 2005 5:04 pm    Post subject: Reply with quote

Before bidding you have to go to the bank that is auctioning the property and pay a certain amount or percentage of deposit. (I think 2% of the opening bid price).

After that you have to bring cash (only) for the 10% downpayment of the maximum price that you bid. If you are the highest bidder and your cash in hand is less than 10%, they will take your deposit and you won't get to buy the property.

Bidding is for serious buyer only.

TQ.
Back to top
View user's profile
preacher



Joined: 20 Oct 2005
Posts: 470

PostPosted: Mon Nov 28, 2005 6:01 pm    Post subject: Reply with quote

Buying a property through auction has some inherent risk and the key word is "caveat emptor" or let the "buyer beware".

The advertisement for the auction itself will have a whole list of precautions, i.e.

(i) prospective buyer to inspect property
(ii) prospective buyer to conduct land search

etc.

I will just comment on (i) and (ii). There are much more.

The property may need some extensive repairs and just because you buy cheap, you may end up paying more later.

If the current unit is already empty, it may be possible to inspect it but its still quite a hassle. Arranging with the banks lawyers/auction agent. Nevertheless, its a risk, just like buying a car at an auction. You are not even allowed to start the engine. And bear in mind, there is no liability whatsoever from the bank/auctioneer.

One week after you "move in" and the roof starts falling down, its your own cost. Another reason why you must inspect the unit is to ensure that the current borrower /tennant has been evicted. Or not, it will be your responsible to evict him.

And ask yourself this question, if the bank could have evicted the tenant/borrower, why have they not done it yet. Beacuse its a hassle and they might just leave the hassle with you. What if the current borrower/tennant is a gangster and does not want to leave?

Land search is important as you do not want to buy a bumi unit. I was told that as far as the bank is concerned, if you won the bid, the house is yours. Transfering the land title to your name is a personal issue between you and the Land Office and does not concern them.

Lastly is sometimes the process is manipulated by certain individuals. I always have this fear that after you have bought the unit from auction, the current borrower threatens you to sell it back to him at a discount.

Auction properties are at a discount to market price hence, certain additional risk must be attached.

Just my personal opinion on buying properties under auction.
_________________
practise what you preach
Back to top
View user's profile
cynthusc



Joined: 16 Sep 2005
Posts: 504

PostPosted: Thu Dec 15, 2005 9:18 am    Post subject: Reply with quote

Im sure its a little late to reply so I hope the advice below is of some use.

Property with title

1) Please do a land search to make sure everything is in order. Check to see it there are any restrictions and obstacles to the transfer eg. bumiputra lot, agriculture land (when its a residence you are buying), any caveat etc.etc.

2) get a print out of the assessment and quit rent receipt to gauge the outstanding amount due with regards to the property;

3) Read the proclamation of sale throughly...make sure that it is not you who is paying for 2) above. If you are, factor it into your costing;

4) factor in your legal fees (Noor has helped a lot in the calculations)

5) if the POS does not mention that it is for bumi bidders only and you have bidded for it, in my experience you can still cancel the sale and get your deposit back...but may lose your legal fees and lots of your time

Without Title

1) Read POS carefully, see who pays for what. Usually auctioning bank will only pay for assessment, maintenance and quit rent, and you have to pay for water, insurance, late interest etc... Factor this into your purchase price.

2) Get a copy of the letter of Consent from Developer and look at terms carefully.

3) I f leasehold...mega problems as have to get consent and the 120 days given by the bank, usually not enough...In my experience can get extension but must pay late interest and maybe even the banks charges for not reauctioning the property. If pay late interest usually 8-10% on daily rests...so be very cautious.


Regards
Back to top
View user's profile
Dunhill



Joined: 05 Oct 2005
Posts: 75

PostPosted: Fri Dec 23, 2005 2:25 am    Post subject: Reply with quote

(i) Are you sure that the buyer has to pay the 2% commission to the auction agent?

(ii) Why cash only? Cheque is accepted.
Back to top
View user's profile
kpgan1



Joined: 30 Apr 2007
Posts: 12
Location: KL

PostPosted: Mon Apr 30, 2007 6:01 pm    Post subject: Proclamation Sale Reply with quote

Hi Cynthusc,
I plan to bid for Double Story House in Auction house.
1. I check with Bank Lawyer verbally, he claimed that there is no restrictions and obstacles to the transfer.
Is there any "black & white" I can ask from the Bank Lawyer before I proceed for bidding ?

2. The Bank lawyer also claimed that Bank will pay all the outstanding bill up to the date of Auctions ?
Do I need to get the print out of all the outstanding bill ? if yes, how to obtain it ?


===============================================
Im sure its a little late to reply so I hope the advice below is of some use.

Property with title

1) Please do a land search to make sure everything is in order. Check to see it there are any restrictions and obstacles to the transfer eg. bumiputra lot, agriculture land (when its a residence you are buying), any caveat etc.etc.

2) get a print out of the assessment and quit rent receipt to gauge the outstanding amount due with regards to the property;

3) Read the proclamation of sale throughly...make sure that it is not you who is paying for 2) above. If you are, factor it into your costing;

4) factor in your legal fees (Noor has helped a lot in the calculations)

5) if the POS does not mention that it is for bumi bidders only and you have bidded for it, in my experience you can still cancel the sale and get your deposit back...but may lose your legal fees and lots of your time

Without Title

1) Read POS carefully, see who pays for what. Usually auctioning bank will only pay for assessment, maintenance and quit rent, and you have to pay for water, insurance, late interest etc... Factor this into your purchase price.

2) Get a copy of the letter of Consent from Developer and look at terms carefully.

3) I f leasehold...mega problems as have to get consent and the 120 days given by the bank, usually not enough...In my experience can get extension but must pay late interest and maybe even the banks charges for not reauctioning the property. If pay late interest usually 8-10% on daily rests...so be very cautious.


Regards
Quote:

_________________
Toyf
Back to top
View user's profile MSN Messenger
cynthusc



Joined: 16 Sep 2005
Posts: 504

PostPosted: Tue May 01, 2007 1:21 pm    Post subject: Reply with quote

Double storey house? I am assuming it has a title then. Why trust the bank's lawyer when the bank's lawyer is acting for the bank? Do your own land search and find out what are the encumbrances on the Property.

As for outstanding you can get the printout from the Land Office and the Majilis Perbandaran. Always do your own checks and if you can afford it get a lawyer who is experience in this area to guide you. Utilise the guidelines I mentioned in the post. Have you done the necessary checks?

As for the Bank bearing the outstanding, a simple read of the POS will let you know. Get a copy before the auction date.

Regards
Back to top
View user's profile
kpgan1



Joined: 30 Apr 2007
Posts: 12
Location: KL

PostPosted: Fri May 04, 2007 5:47 pm    Post subject: POS Reply with quote

cynthusc wrote:
Double storey house? I am assuming it has a title then. Why trust the bank's lawyer when the bank's lawyer is acting for the bank? Do your own land search and find out what are the encumbrances on the Property.

As for outstanding you can get the printout from the Land Office and the Majilis Perbandaran. Always do your own checks and if you can afford it get a lawyer who is experience in this area to guide you. Utilise the guidelines I mentioned in the post. Have you done the necessary checks?

As for the Bank bearing the outstanding, a simple read of the POS will let you know. Get a copy before the auction date.

Regards

Hi Cynthusc,
Yes, but the title is master title. I already did the land search, it is free hold, not "Malay Reserve", no restriction, for resident building.
I also get the POS, the bank will pay for the assessment...ect.
Is there any thing else I need to do before bidding ?
BTW, your PM is disable, can I have your contact as I may need your service after the bid.

Thank you very much for your advice.
_________________
Toyf
Back to top
View user's profile MSN Messenger
cynthusc



Joined: 16 Sep 2005
Posts: 504

PostPosted: Mon May 07, 2007 9:22 am    Post subject: Re: POS Reply with quote

kpgan1 wrote:
cynthusc wrote:
Double storey house? I am assuming it has a title then. Why trust the bank's lawyer when the bank's lawyer is acting for the bank? Do your own land search and find out what are the encumbrances on the Property.

As for outstanding you can get the printout from the Land Office and the Majilis Perbandaran. Always do your own checks and if you can afford it get a lawyer who is experience in this area to guide you. Utilise the guidelines I mentioned in the post. Have you done the necessary checks?

As for the Bank bearing the outstanding, a simple read of the POS will let you know. Get a copy before the auction date.

Regards

Hi Cynthusc,
Yes, but the title is master title. I already did the land search, it is free hold, not "Malay Reserve", no restriction, for resident building.
I also get the POS, the bank will pay for the assessment...ect.
Is there any thing else I need to do before bidding ?
BTW, your PM is disable, can I have your contact as I may need your service after the bid.

Thank you very much for your advice.


You can contact me at cynthusc@yahoo.com
Back to top
View user's profile
cheewooi



Joined: 29 May 2008
Posts: 8

PostPosted: Mon Aug 16, 2010 3:39 pm    Post subject: Reply with quote

How to do a land search? What are the item that you need and where to do it?
Back to top
View user's profile
Kenariman



Joined: 18 Aug 2010
Posts: 17
Location: Klang Valley

PostPosted: Wed Aug 18, 2010 6:16 pm    Post subject: Reply with quote

cheewooi wrote:
How to do a land search? What are the item that you need and where to do it?


Depends on where is the location of the prop. If it falls in KL, just go the land office beside dataran merdeka...RM 30 for each search..all you need is the title number...

JY
Back to top
View user's profile
Scorpion king



Joined: 20 Sep 2010
Posts: 4

PostPosted: Mon Sep 20, 2010 8:51 pm    Post subject: Reply with quote

If the current unit is already empty, it may be possible to inspect it but its still quite a hassle. Arranging with the banks lawyers/auction agent. Nevertheless, its a risk, just like buying a car at an auction.

You are not even allowed to start the engine. And bear in mind, there is no liability whatsoever from the bank/auctioneer.
_________________
nse tips
nse market
Back to top
View user's profile
Scorpion king



Joined: 20 Sep 2010
Posts: 4

PostPosted: Mon Sep 20, 2010 8:52 pm    Post subject: Reply with quote

If the current unit is already empty, it may be possible to inspect it but its still quite a hassle. Arranging with the banks lawyers/auction agent. Nevertheless, its a risk, just like buying a car at an auction.

You are not even allowed to start the engine. And bear in mind, there is no liability whatsoever from the bank/auctioneer.
_________________
nse tips
nse market
Back to top
View user's profile
hfchuraymond



Joined: 11 Jun 2009
Posts: 606

PostPosted: Wed Sep 22, 2010 4:15 pm    Post subject: Reply with quote

If you wish to write originally, please do so without 'borrowing' someone's participation, just in case you need to know.

As for the issue on auction sale, the preliminaries are available as a guide from the website.

Actually, the information is very basic and the proclamation for sale is sufficient to provide the sum total basic information to a consumer.

The progress of sale and purchase via bank loan is almost similiar to any other ordinary sale and purchase of properties.

Hope the viewers are not getting goose bump just trying to figure out what is so difficult about auction sale.

Just attend one seating, if you need to know more.
_________________
RC
Back to top
View user's profile
butthead



Joined: 02 Mar 2006
Posts: 105

PostPosted: Mon May 30, 2011 2:55 pm    Post subject: Reply with quote

Good tips.....I wish I got them before I landed myself in hot soup severals years back....

2 bad experience I encountered:-

1) Didn't do land title check due to insufficient time, end up find out it's a bumi lot when tried to do a title transfer. Had to appeal 2 times before successful.

2) The 120 days to pay up the remaining balance, due to the issue of transfer (leasehold), end up had to negotiate with the bank. The POS didn't indicate clearly. I feel it was a setup and as POS on other property from the same auction house indicate bumi or non-bumi lot.

It's just a scam job but the return is rewarding if you can manage all those obstacles. Another unit is on auction now and I'm itchy for another unit but the 120days to pay up the balance is a major obstacle which needs to be pre-negotiated with bankers before bidding. Else back again into the hot soup.
Back to top
View user's profile
Display posts from previous:   
Post new topic   Reply to topic    Malaysia Real Estate Forum Index -> S & P and Legal Issues All times are GMT + 8 Hours
Page 1 of 1

 
Jump to:  
You cannot post new topics in this forum
You cannot reply to topics in this forum
You cannot edit your posts in this forum
You cannot delete your posts in this forum
You cannot vote in polls in this forum



This is a free forum intended to foster communication between all users.
Hileytech Sdn Bhd does not guarantee the correctness or validity of postings, nor does Hileytech endorse any postings. No posting or contents in this forum can be copied and reproduced without prior permission from Hileytech and the owner of the posting. All other names and marks are trade names, trademarks or registered trademarks of their respective owners.
Powered by phpBB, Another web site by www.hileytech.com,Forum Archive
Tel : +603-89449965, +603.89449365 ::  Fax : +603-89440665 :: hiley@hileytech.com