Over 30 years of experience in Iskandar Malaysia's property market, Johor Bahru -based registered estate agency, Tiram Realty, offers FREE tips and info on the selling, buying, renting and auction of properties in Iskandar Malaysia through the blog.
Showing posts with label auction. Show all posts
Showing posts with label auction. Show all posts
Saturday, February 21, 2009
Thursday, June 12, 2008
Auction cancelled 20 minutes AFTER HAMMER DOWN
In response to our article entitled "Can someone cancel the house I bought in an auction?", one of our website visitors is kind enough to share with us a personal experience:
It happened to me 2 years ago. For my case, 20 minutes after the hammer down, the bank cancelled. I was not even given the chance to sign S&P. Nevertheless, I proceeded to sue the bank and won the case in KL High Court. The difficult tasks are finding a lawyer that is willing to sue and a valuator willing to prove your damage. My case is pending for the damage assessment.- S Ong
Under the auction law, the property is declared sold upon hammer down, hence leaving no more rooms for withdrawal. So, I have no doubt that Mr. S Ong above has a solid cause of action against the bank and i'm happy that the KL High Court has further strenghten this principle. He pointed out a very practical problem however, i.e. getting a lawyer to sue the bank.
Tuesday, July 31, 2007
Property Auction #6: Are you bidding on Standard & Chartered Bank's properties?
If you are planning to bid for Standard & Chartered Bank's property (Laca case), always remember to register yourself with their panel agent few days in advanced. The purpose is for the agent to apply for you to waive the maintenance fees, quit rent and assessment owed by the previous owner.
If you do not perform the above, I'm sorry to inform you that you yourself have to bear those costs. In many instances, these figures can amount to more than RM10,000!
This only applies to Laca cases, i.e. properties without individual titles being issued. As for non-laca cases, this is not really an issue as the bank will automatically absorb the sum.
The beauty of auction properties with most overseas banks is they will pay up the owing sum directly to the management corporation. As compared with the local banks, they will normally ask the buyer to fork out the money first, then claim back the money from the local banks at later stage, which sometime takes up to one year! Therefore, if you are buying properties through auction with local banks, please get ready the owing sum first as part of your initial outlay.
If you do not perform the above, I'm sorry to inform you that you yourself have to bear those costs. In many instances, these figures can amount to more than RM10,000!
This only applies to Laca cases, i.e. properties without individual titles being issued. As for non-laca cases, this is not really an issue as the bank will automatically absorb the sum.
The beauty of auction properties with most overseas banks is they will pay up the owing sum directly to the management corporation. As compared with the local banks, they will normally ask the buyer to fork out the money first, then claim back the money from the local banks at later stage, which sometime takes up to one year! Therefore, if you are buying properties through auction with local banks, please get ready the owing sum first as part of your initial outlay.
Wednesday, July 4, 2007
Property Auction Tips #5: Should i bid for a caveated property?
This is a question posted to me by one of our Tiram blog reader. Apparently, she came across a Proclamation of Sale (P.O.S) of a property in Kuala Lumpur which she's interested in buying. It so happened that the property has been caveated. She then sought advice from few registered estate agents on the issues on caveat, nevertheless she couldn't seem to obtain a satisfactory answer.
This is what i would do should i come across any caveated properties in auction:
(1) Talk to the P.O.S lawyer on the nature of the caveat in questioned, and the possibility of removing the caveat,
(2) Obtain second opinion from my panel lawyer on the possibility of removing the caveat,
(3) Should i get both negative answers from both lawyers, i won't even market the property to any of my client at the first place
(4) Should i get conflicting answers from both lawyers (and yes, lawyers do differ in their opinions sometime), i will also advise my client not to bid for the property.
I've always told my client that buying properties is a happy thing to do, but it may turn out to be some not so delightful event should you get yourself caught up with some legal predicament.
Always make sure that you know what you are buying.
This is what i would do should i come across any caveated properties in auction:
(1) Talk to the P.O.S lawyer on the nature of the caveat in questioned, and the possibility of removing the caveat,
(2) Obtain second opinion from my panel lawyer on the possibility of removing the caveat,
(3) Should i get both negative answers from both lawyers, i won't even market the property to any of my client at the first place
(4) Should i get conflicting answers from both lawyers (and yes, lawyers do differ in their opinions sometime), i will also advise my client not to bid for the property.
I've always told my client that buying properties is a happy thing to do, but it may turn out to be some not so delightful event should you get yourself caught up with some legal predicament.
Always make sure that you know what you are buying.
Monday, May 7, 2007
Property Auction #3: Is auction property always "cheap"?
Before auction, the bank will always engage a registered valuer to value the property as at Open Market Value (OMV) and also Forced Sale Value. As a rule of thumb and a rough guide, a Forced Sale value is normally 10% to 15% lower than OMV.
The first auction will normally start using the OMV as the reserve price, in other words, the auctioneer will first attempt to sell the property using open market value, if unsold, then only the price will start going down. In the case of Laca cases (i.e. properties without individual titles ), the reserve price is going down almost every month by approximately 5% to 10% from previous auction.
Low pricing is normally the major attract for auction properties, however, other issues such as condition of the property, previous owings and vacant possession should also be taken into consideration whenever you want to bid at the auction. Please also refer to my previous articles on Property Auction.
The first auction will normally start using the OMV as the reserve price, in other words, the auctioneer will first attempt to sell the property using open market value, if unsold, then only the price will start going down. In the case of Laca cases (i.e. properties without individual titles ), the reserve price is going down almost every month by approximately 5% to 10% from previous auction.
Low pricing is normally the major attract for auction properties, however, other issues such as condition of the property, previous owings and vacant possession should also be taken into consideration whenever you want to bid at the auction. Please also refer to my previous articles on Property Auction.
Thursday, April 5, 2007
Tiram Realty Official Website
Tiram Realty website is undergoing extensive upgrading. Expected re-opening by May 2007.
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