Conduct Due Diligence & Title Searches
Unlike standard sub-sale transactions, there are no warranties in a property auction. It is solely the bidder's responsibility to uncover legal encumbrances or hidden liabilities before placing the 10% bank draft deposit.
- Title Search (Carian Rasmi): Verify the registered owner, land tenure, and check for lodged private caveats that could block the transfer of ownership.
- Outstanding Bills Check: Investigate unpaid maintenance fees, sinking funds, Cukai Pintu (assessment tax), and Cukai Tanah (quit rent).
- Physical Inspection: Visit the actual site to assess the exterior condition, neighborhood vibe, and confirm whether the unit is vacant or occupied by tenants/defaulters.
- Read the COS: Check the Conditions of Sale (COS) to determine if the assignee bank will absorb the outstanding maintenance fees or if they are entirely borne by the successful bidder.
Professional Title Search & Caveat Check
Don't bid blind. Let our registered panel check the legal health of your shortlisted property. We pull official data directly from the Pejabat Tanah (Land Office) to ensure the property is safe to bid on.
Due Diligence FAQs
What is a private caveat and how does it affect my auction bid?
A private caveat is a legal notice lodged by a third party claiming an interest in the property. If you win an auction property with an active private caveat, the land office will block the transfer of the title to your name until the caveat is removed, which can require lengthy and costly high court proceedings.
Are outstanding utility bills (TNB, Syabas) covered by the bank?
No. In almost all Malaysian bank auctions, outstanding utility bills like electricity (TNB), water (Syabas/SAJ), and sewerage (Indah Water) are strictly borne by the successful bidder. You must reconnect these utilities under a new account once you obtain the Certificate of Assignment.
What happens if the auction property is still occupied?
Banks do not provide vacant possession. If the property is occupied by the previous owner or a tenant, it is your responsibility as the new successful buyer to evict them. This is usually done by applying for a distress order or court eviction notice through a lawyer.
Can a bank cancel the auction at the last minute?
Yes. An auction can be "Called Off" (K.I.V) even hours before the bidding starts. This usually happens if the defaulting owner settles their arrears with the bank or obtains a temporary court injunction to stop the sale.
