Documents And Steps That Should Be Done For Any Auction Event

Documents And Steps That Should Be Done For Any Auction Event

Document and Process For Auction Property Event

 

For individuals:

  • A photocopy of your Identity Card (IC)
  • A bank draft or cashier’s order equivalent to 10% of the reserve price (purchase from any bank)
  • Additional funds to pay for the shortfall in the deposit of the successful bid vs the reserve price.
  • Authorization letter (if you are bidding on behalf of someone such as agent)

For companies:

  • A photocopy of director’s IC
  • A bank draft or cashier’s order equivalent to 10% of the reserve price
  • Additional funds to pay for the shortfall in the deposit of the successful bid vs the reserve price.
  • Board of Director’s resolution
  • Form 24 and 49
  • A certified true copy of the company’s Memorandum and Articles of Association (M&A)
  • Authorization letter (with company letterhead and company stamp, signed by at least 1 director)
  • IC and photocopy IC of the person authorized to bid

What is the process of buying an auction property?

Some Checklists Are Listed In Another Blog Post Simply Guide For Property Auction

  1. You must be at least 18 years of age to be an eligible bidder.
  2. Select your desired auction property based on the auction list or recommendations provided by your auction agent.
  3. Conduct an official title search with the relevant Land Office and make contact with the developer and management office. You may engage your agent for this service.
  4. Visit the location and conduct an external inspection of the property to ascertain the current condition of the property. Do not rely only on the description or images of the property. Survey the market price of that particular property by consulting your agent.
  5. Conduct due diligence checks on the property depending on what type of property you are bidding for – LACA/non-LACA. You may request your agent to  help you.
  6. Once you have decided to bid for the property, get a copy of the Proclamation of Sale (POS) and Condition of Sale (COS). Your agent will download a copy and explain the important clauses in the POS and COS to you.
  7. Register yourself as a bidder with the bank via the auction agent servicing you.
  8. Pre-qualify and pre-arrange financing for the selected property with your bank.
  9. Take note of the auction’s date, time and venue.
  10. Prepare a bank draft, 10% of the reserve price, as stated in the POS and COS.
  11. List down other costs not covered by the bank.
  12. Ensure you reach the auction venue at least 30 minutes earlier and register at the auctioneer registration counter. You will be given a bidders card with a number during the bidding. Your agent should attend the bidding with you, or if you are unable to bid on your own, you may also authorize your agent to bid on behalf of you. You will need to provide an original authorization letter, a photocopy of your IC and pass the original bank draft to your agent
  13. Before the bidding process, the auctioneer will read out some important clauses in the P.O.S and C.O.S and some information about the property. He will then announce the commencement of the auction.
  14. During the bidding, you or your agent bidding on behalf of you will raise the bidding card to indicate the bidding price. The bidding will stop when the highest price is called out 3 times by the auctioneer and no higher bids are made. At the fall of the hammer, the property is sold.
  15. Ensure you prepare additional cash or bank draft to top up the difference in deposit sum between successful bidding price and reserve price. This must be paid after the auction should you be the successful bidder.
  16. If you are the successful bidder, you will then have to sign the Contract of Sale. The balance of purchase price must be paid within 90 (for LACA) or 120 days (non-LACA) as per the P.O.S and C.O.S.
  17. Contact the bank you have selected and pre-arranged to finance the balance 90% of your purchase price.
  18. Should the current occupant refuse to vacate the property, apply for a distress order and get a court order through a lawyer to demand vacant possession.
  19. For unsuccessful bidders, your deposit will be refunded immediately after the auction.
  20. Do take note that if you are the successful bidder and later change your mind on the purchase, your deposit will be forfeited.
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