FAQ

What is a Public Auction of property?

It is a public sale of property though open and competitive bidding. The property will be sold to the highest bidder.


What is Aborted / Sold / No Bidder / Expired?

Expired: Property auction date is past, status pending confirm.

Aborted: Property has been called off from auction by bank due to owner settlement or documentation incomplete.

Sold: Property is sold with selling price

No Bidder: Property is not sold during auction date, new auction date may be pending or scheduled.


How often are the listings to be updated in Lelongtips.com.my?

Daily, as soon as we have obtained the data to ensure that you won’t miss any of the auction unit


What are the advantages to the seller in an auction situation?

Buyers come prepared to buy. "Lookers" are eliminated because most often bidders must qualify by depositing a bank draft or cashier’s order. Sellers get maximum exposure for their property. Many real estate agents now market auction property as auction properties are widely accepted. High holding costs are avoided. Through auctions, the seller is in control and knows that if the property is priced, his property will sell on a certain date from the auction listing. By selling quickly, the seller is able to avoid high holding costs and is also able to benefit from the use of the monies to reinvest in other opportunities elsewhere.


What are advantages to the buyer in an auction situation?

The buyer knows the seller is fully committed to sell. Auction agreements obligate the seller to transfer title to the highest bidder in an auction. The buyer knows he is getting the property at fair market price. The buyer feels comfortable with the purchase knowing that other would have been willing to pay for about the same amount for the property as his bid. The buyer sees many offerings in the same place at the same time. He is able to make market comparisons quickly and easily.


Who may bid for auction property?

Intending purchaser who possess a Bank draft/Banker’s cheque be equal to 10% or 5% (depends on bank’s requirement) of the reserve price is qualified to become a bidder. Qualified bidder may delegate another to act as an agent or representative in his behalf. The delegate is required to submit a Letter of Authority and NRIC card photocopy of the intending purchaser.


Where will the auction be held?

The auction is usually held at the auctioneer's office, High Court or Land Office. In order to participate, intended bidder should first register with us 2-3 days before auction date and then request for relevant information about the auction property.


What should you bring in order to bid?

For Individual Buyers:

  1. A bank draft/cashler’s order equivalent to 5% or 10% of the fixed reserve price payable to respective bank, as stated in POS* & COS*
  2. Identification card (I/C) together with a photocopy of I/C (both sides)
  3. An Authorisation/nomination letter (if you are bidding for someone’s behalf)
  4. Additional funds to apy difference between reserve price and successful bid price. (5% or 10% of the successful/additional bid price)

For Corporate buyers:

  1. Company M&A (Certified true copy by Company Secretary)
  2. Form 24 (Certified true copy by Company Secretary)
  3. Letter of authorization (with letterhead and Company Stamp, signed by at least 1 Director)
  4. Photocopy I/C of Directors
  5. Additional funds to pay the difference between the deposits paid upon registration. (5% or 10% of the successful/additional bid price)

Things to avoid or to take note on auction

  1. Always check the specific amount requested and the Bank Drafts/Banker’s Cheque are correctly payable.
  2. Unprepared and inattentiveness during call bids will make you lose a probable opportunity.
  3. Certainly do not bring personal or company cheque as Auction deposits.
  4. To be present earlier to avoid disappointment.
  5. It is important to listen to the auction proceeding very carefully to avoid unawareness.
  6. Observe the details provided are correct in the Contract of Sale before endorsement.

What if I can't attend the Public Auction?

If you are unable to attend the public auction, you can appoint your representative via a nomination letter. You can obtain the format or sample of the nomination letter from us.


Is there any additional payment to be made on the auction date?

In the event that the Purchase Price is higher than the Reserve Price, the Purchaser shall immediately deposit a sum equivalent to the difference between Purchase Deposit and the Bidding Deposit (the ‘Purchase Deposit Shortfall') either in cash of by way of a valid bank draft or cashier's order drawn in favour of the Bank which together will form the Purchase Deposit.

Also, successful bidder will also have to bear the stamping fee of the sales contract, which cost between RM50 to RM100.


What happens to earnest money if a buyer decides at a later date not to buy the property?

Many of the same things happen in an auction situation as in any other real estate transaction. The earnest money deposit is forfeited if the highest bidder is unable to complete the sale regardless of the reasons. If the seller fails to close because of defective title, etc. the buyer's deposit will be fully refunded immediately.


Can foreigner buy auction property in Malaysia?

Foreigners, permanent residents (PR) and foreign companies can only buy non-landed properties (Master Title) priced at least RM2 million in Selangor & Johor Bahru and at least RM1 million in Kuala Lumpur.