Prepare the 5% or 10% Auction Deposit
Without the exact deposit amount and accurate payee details as stipulated in the official Proclamation of Sale (POS), your registration will be disqualified immediately. Cash, personal cheques, and standard unverified bank transfers are strictly forbidden.
- LACA vs Non-LACA Thresholds: LACA auctions (properties without individual or strata titles) frequently require a 5% deposit. Non-LACA auctions (High Court and Land Office foreclosures) mandate a 10% deposit. Always verify the specific percentage on the POS header.
- Exact Calculation Formula: Multiply the reserve price by the prescribed percentage. For example, a 10% deposit on an RM270,000 Kluang landed auction requires an exact RM27,000 bank draft; a 5% deposit on an RM300,000 unit requires an RM15,000 draft.
- Payee Name Precision: The draft must be made payable precisely to the assignee bank's official legal name (e.g., "Malayan Banking Berhad" or "Public Bank Berhad"), matching every letter in the Conditions of Sale.
- Standby Top-Up Requirement: If competitive bidding drives the winning hammer price above the reserve, the successful bidder must settle the difference to complete the full 5% or 10% of the final bid price on the same day.
Need Help Setting Up Your Auction Deposit?
A single spelling discrepancy on a bank draft can prevent your bid from being entered. Our team assists with reviewing the Conditions of Sale, validating the exact bank payee name, and ensuring full compliance before auction registration.
Deposit Preparation FAQs
How do I determine whether an auction requires a 5% or 10% deposit?
The required percentage is determined by the legal structure of the auction. LACA auctions (handled directly by banks for properties without separate individual or strata titles) frequently require 5%, whereas Non-LACA auctions (conducted via the High Court or Land Office) require 10%. Check the "Deposit" clause in the official Proclamation of Sale (POS) for the binding percentage.
What happens to my bank draft deposit if I am outbid?
If your bid is unsuccessful, the auctioneer returns your physical bank draft immediately following the conclusion of the auction. For e-Lelong portals, the funds held in the court or auctioneer escrow account are automatically refunded to your registered Malaysian bank account, typically within 1 to 3 working days.
Can I use cash, personal cheques, or standard bank transfers instead of a bank draft?
No. For physical and hybrid bank auctions, auctioneers do not accept cash, post-dated cheques, or third-party company cheques due to anti-money laundering regulations and clearance risks. Only an official Bank Draft or Cashier's Order issued by a licensed financial institution is recognized as valid tender.
How does the deposit top-up work if bidding exceeds the reserve price?
When the winning bid is higher than the starting reserve price, the initial bank draft only covers the reserve requirement. The winning bidder is legally required to sign the Memorandum of Contract and immediately pay the difference to make up the full 5% or 10% of the final purchase price via instant online transfer, credit card, or supplementary draft.
