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Tips on buying auction properties



On Monday morning, the headlines of all the local papers reported that a man who had spent RM400,000 to buy a condominium unit at Mont Kiara from an auction sale was shocked to see that a body, chopped into 11 pieces and placed in 5 black garbage bags was put into a refrigerator in the unit he had just purchased.

As an auctioneer for more than 15 years, I have always advised my prospects, friends and clients to be very careful when they want to buy auction properties. Generally, many people are very keen to buy properties through public auctions because normally, the prices are fairly cheaper than buying direct from house-owners.

The following tips may be useful for those who wish to buy auction properties:

  1. Read the proclamation of sales carefully before you bid for the property. Check carefully the terms and conditions of sales.

  2. If it is an apartment or condominium, check with the management company, whether there are any unsettled outstanding bills. For example, water bills, electricity bills, management fees, etc.

  3. Check with the bank that is auctioning that particular property whether there is any outstanding assessment bill and quit-rent owing to the local authority. Find out which party is responsible for the bills incurred.

  4. Try to find out from the auctioneer or the plaintiff, whether there is any chance to view the auction premises before you bid for it.

  5. Also, try to find out whether the property is vacant or tenanted, and if so, see if there is any chance to speak to the present tenants so as to gain further understanding on the physical condition of the auction property.

  6. If the said property is caveated, who is responsible to lift the caveat? Who pays the bills: the bank or the successful bidder? Check with the solicitor for further clarification.

  7. Property inspection is vital for any purchase. Do not take the agent�s words for granted. Otherwise, you will be on the losing end.

 

 

 

 

This article was written by : Dr.Wong Chee Yong PJK, Poly Properties


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