Identify the desired property and find the relevant information as per your preferred location and within your budget and check with your banker if loan is needed. Conduct an external inspection of the said property to understand the condition.
Get more information about the property by calling the auctioneer / agent. Register your details prior to the auction with the agent. You have to get a copy of the Proclamation of Sale (POS) and Condition of Sale (COS) and make sure you fully understand all the terms and conditions stated.
Make some general enquiries with the relevant Land Office, developer or management office. Also, seek some independent legal advice on the property. A common problem is when the property is occupied and some effort may be required to obtain vacant possession.
Take note of the auction time, date and venue. Prepare a bank draft for the required deposit (normally 10%) of the Reserved Price as stated in the POS.
You are required to register on the auction day at least one (1) hour before the auction start with your IC and bank draft. The auctioneer will announce the commencement of the auction, and then provide a briefing on the bidding process. After the auctioneer announces the starting price, the bidder should raise his/her bidding card to signify interest and also to indicate the bidding. The bidding process will stop when the highest price is called out three times by the auctioneer and no further bids can be made. At the fall of the hammer, the property is sold.
The successful bidder is required to sign the Contract of Sale and pay the remaining difference on the same day itself if there’s an increment to the successful bidding price. The balance of the purchase price must be paid within 90 to 120 days. You shall appoint your own lawyer for transfer of ownership and contact the bank to arrange for financing.
If you are not the successful bidder, you may redeem your bank draft or cashier’s order at the registration counter after the auction is over.