Win the Bid & Sign the POS
Winning the auction is just the beginning. The signed POS packet forms a legally binding contract between you and the assignee bank. Failing to adhere to these terms will result in the total forfeiture of your 10% deposit.
- Settle the Shortfall: If the property reserve was RM300,000 (RM30,000 deposit), but you won the bid at RM350,000, you must immediately pay the RM5,000 difference to complete the 10% deposit of your final purchase price.
- Sign the POS: You, the auctioneer, and the bank's representative will sign the final POS contracts on the spot. Make sure all your NRIC and property details are perfectly accurate.
- Stamping Process: The signed contracts must be stamped at the Inland Revenue Board (LHDN) within a specified timeframe (usually handled by the auctioneer or your appointed lawyer) to make them legally enforceable.
- The Countdown Begins: LACA properties typically require full settlement within 90 days. Non-LACA (High Court) properties typically allow up to 120 days.
Post-Auction Conveyancing & Mortgage Setup
The clock is ticking. Delays in engaging a lawyer or securing a mortgage can cost you your entire deposit. Our network of panel conveyancing lawyers and mortgage bankers specialize exclusively in fast-tracking Malaysian auction property settlements.
Post-Auction Legal FAQs
Why do I sign the Proclamation of Sale (POS) after winning?
The signed POS (along with the Conditions of Sale and final memorandum) serves as your official, legally binding proof of purchase. You will need this stamped contract packet to apply for a bank loan, engage a conveyancing lawyer, and process the transfer of the land title into your name.
How long do I have to pay the remaining 90% balance?
For LACA (Loan Agreement Cum Assignment) auctions, you strictly have 90 days from the date of the auction to settle the remaining balance. For Non-LACA (High Court or Land Office) auctions, you are typically granted up to 120 days. Always refer to the exact terms in your POS.
Can I request an extension if my bank loan is delayed?
For LACA auctions (90 days), extensions are extremely rare and generally not permitted by the bank. For Non-LACA High Court auctions (120 days), you may sometimes apply for an extension through your lawyer, but it is subject to court approval and will incur an 8% to 10% daily late penalty interest on the outstanding balance.
What happens if my mortgage loan is rejected by the banks?
Unlike sub-sale properties where a "subject to loan approval" clause exists, auction sales are unconditional. If your loan is rejected and you cannot find cash to settle the remaining 90% balance before the deadline, your entire deposit will be completely forfeited to the bank, and the property will be put up for auction again.
