Property auction is an event where foreclosed properties are sold to bidders, and it is managed by an auction house such as Property Auction House Sdn Bhd. Nowadays, it is one of the popular ways for a property investor in Malaysia to purchase property at much lower than the market price.
There are 2 types of property auction. The first type is Loan Agreement Cum Assignment (LACA) auction, and it is conducted by banks for properties without an individual / strata title. The second type is Non-LACA property where the auction is conducted by the High Court for properties with an individual / strata title.
For LACA property, the bidder must pay 5% of the purchase price as a deposit to the auctioneer and the balance must be settled within 90 days. For non-LACA property, the deposit is higher, at 10% while the balance should be settled within 120 days.
Before you go for a property auction, you may want to read the following guides.
There are 2 types of property auction. The first type is Loan Agreement Cum Assignment (LACA) auction, and it is conducted by banks for properties without an individual / strata title. The second type is Non-LACA property where the auction is conducted by the High Court for properties with an individual / strata title.
For LACA property, the bidder must pay 5% of the purchase price as a deposit to the auctioneer and the balance must be settled within 90 days. For non-LACA property, the deposit is higher, at 10% while the balance should be settled within 120 days.
Before you go for a property auction, you may want to read the following guides.
