Auction Properties

The following banks are just some of our Auction Panels;

• CIMB BANK
• HONG LEONG BANK
• ALLIANCE BANK

Frequently Asked Questions (FAQs):-

Q: What is Auction?
A: Auction is a method of selling real estate in a public forum through open and competitive bidding to a person who makes the highest bid.

Q: Why are properties being auctioned?
A: Properties are auctioned by financial institution when default by borrower or charged property with the order for sale obtained from the court or land office.

Q: When is the next auction in my field of interest?
A: Please check the auction sales dates and description of properties in our auction website at www.cbd.com.my/auction. You may also enquire via online or contact our negotiators directly:

1. Enquiries on auction property details and relevant document
2. Free registration
3. Free arrangement for auction service

Q: What is the Auction Procedure?
A: Before Auction Date:-

1. Familiarise yourself with the property
Identify the property lots which are suitable to your needs or interest and make the necessary arrangement to survey and inspect the subject property on your own.

2. Check your financial status
Work out your budget with your financing adviser the maximum price that you intend to bid at the auction. You must be prepared to ‘top up’ the difference if the final auction price is higher than the reserve price immediately.

3. Reconfirm the actual cost
Call our Negotiator to obtain the information needed and understand the Proclamation of Sale (POS) of the property.

4. Register and prepare the bank draft
At least (3) three days before the auction day, register with us and bring along a bank draft of 5% or 10% deposit of the RESERVE PRICE made in favour of the name (as stated in the Proclamation of Sale) to our Negotiator or Manager in charge for registration.

A: After A Successful Bidding:-

1. On the spot signing the Contract of Sale
The successful bidder is required to sign the Contract of Sale and pay the difference of 5% or 10% equivalent to the successful bidding price in the deposit if there is an increment in bidding price.
 
2. Arrangement for loan application
If you wish to obtain financing, it is advisable to apply it as soon as possible after the auction.

3. To appoint lawyer to act on your behalf

You will need to appoint your own lawyer to act on your behalf to execute the transfer of property ownership.

Q: What documents are required on the auction day?
1. For an individual bidder:-

•  A photocopy of bidder’s NRIC card (both sides) / Passport.
•  Bank Draft 5% or 10% of the RESERVE PRICE and extra CASH / Bank Draft.

2. For a Corporation/Company:-

•  Photocopy of IC of all director(s) / Passport.
•  Bank Draft 5% or 10% from the RESERVE PRICE and extra CASH / Bank Draft.
•  A certified true copy of the company’s Memorandum and Articles of Association.
•  Form 44, 24 and 49.
•  Board of Director’s Resolution.
•  An authorization letter with the company letter head signed by all director(s)

Note: Please insert the authorized bidder name and IC on the authorization letter

3. For Agent / Representative:-

•  Photocopies of bidder’s NRIC card (both sides) / Passport.
•  Bank Draft 5% or 10% from the reserve price with extra cash / Bank Draft.
•  Letter of Authority on behalf from the intending Bidder.

Q: What information is needed to bid?
A: You will need to provide the information as requested in our bidder’s registration form. Call our Negotiator for assistance at www.cbd.com.my/auction
You may also consider our Online Registration and contact our negotiator for assistance.To expedite the registration process, please register with our negotiator within 3 working days.

Q: What is the age limit to bid for an auction property?
A: You need to be 18 years old and above to bid in an auction. For bidders of 50 years and above, you have the responsibility to obtain the necessary financing in advance. Work out on how much you can afford with your finances at maximum price that you intend to buy at auction. As an alternative, the bidder may pay cash for the property.

Q: How can I bid if I can’t come to the auction in person?
A: You can submit an absentee bid. Also, with your prior written authorisation, our CBD Negotiator can bid on your behalf. Deposit must be pre-arranged.

Q: Are foreigners eligible to participate in a public auction?
A: Yes. Depend on cases. You may request our negotiator to check the terms & conditions of the properties.

Q: What is the Reserve Price?
A: The Reserve Price is the lowest price at which the property can be sold.

Q: What is the final bid price?
A: The final bid price of the auction property may be more than the reserved price. The difference must be paid on the spot to the auctioning bank.

Q: How long do I have to settle the balance of the purchase price?
A: You will be given either 90 or 120 days from the date of auction, as stated in the Proclamation of Sale to settle the balance of the purchase price.

Q: What is a property contract?
A: A stamped property contract is a legal and binding document.

Q: Are there any restrictions on auction properties?
A: Certain properties sold at auction may be subject to certain laws governing the properties when they were purchased (such as express or impress conditions in the title). It is the buyer’s responsibility to be aware of these restrictions and obtain any licenses or papers required from the relevant authorities. We advise you to check with us to find out more details on this matter.

Q: Who will bear all the quit rent, assessment, maintenance outstanding and utilities bills?
A: The above mentioned outstanding will be subject to the terms and conditions stated in COS (Condition of Sales).

Q: Do I need to appoint my own lawyer to handle the transfer of property ownership?
A: Yes, you need to appoint your own lawyer to act on your behalf to execute the transfer of the property ownership.

Q: What are the benefits of buying auction properties?
1. It is a smarter investment choice as auction properties are sold at a fair market value without having to go through any long drawn negotiation.
2. In CBD auctions, there is a wide range of properties sold at one place and you have the benefit of making comparison of the various properties in a single location.

Q: How can I know more details of an upcoming auction?
A: You can contact us through phone call, email or online enquiry / registration at:
•  Hotline: 03 – 9223 8833 ext 18 (Mon – Fri, 9:00am – 6:00pm)
•  E-mail: auction@cbd.com.my
•  Website: www.cbd.com.my/auction
•  Address: No 12, 4th Floor, Fraser Business Park, Metro Pudu Off Jln Tun Razak, 55200 Kuala Lumpur.