Can You Buy a Lelong Property Directly From the Bank?
Key Takeaways
- Usually, no. Once a court or land office orders the sale of titled property, the law requires a public auction, and a lot with no qualifying bid goes back to auction.
- Banks do sell directly, through their own channels. Public Bank takes written offers from a published list, and RHB has sold group-owned property by open tender.
- An owner can still clear the debt before the sale concludes, but on that route you deal with the owner, not the bank.
- Developer-title (LACA) lots differ. A contract like UOB's allows private treaty, but that is the bank's power, not your right.
- The workable route is to track an unsold lot and bid in a later round. BidNest records show clearance rising from 10.2% in round 1 to 53.6% in round 5 or later.
What does buying directly from the bank actually mean?
Many buyers assume a failed auction opens the door to a quiet negotiation. The phrase covers different situations:
| Route | Who sells | The catch |
|---|---|---|
| Bank's offer list (Public Bank) | Bank | Written offers only; the bank can reject any without reasons |
| Open tender (RHB) | Bank | The highest offer need not be accepted |
| Private sale | Owner | The debt must be dealt with; legality questioned after an order for sale |
| Private treaty on a LACA lot (UOB) | Bank | Entirely at the bank's discretion |
When will a bank consider an offer outside the auction?
Public Bank. Its list of properties for sale, dated 12 October 2026, covers residential, commercial, industrial and land lots, including in Kuala Lumpur, Selangor and Negeri Sembilan. Offers must be written, are considered first come, first served, and can be rejected whatever the price. The bank may consider a loan for eligible buyers. The list does not say whether these properties have been to auction.
RHB. In July 2026, RHB Banking Group ran an open tender for six properties it owned, among them shop offices in Kuala Lumpur and Petaling Jaya. Bundled offers were preferred, and a successful tenderer who withdraws forfeits the earnest deposit. That tender has closed, so watch RHB's own site for new ones.
The owner, before the auction. A Malaysian Bar CPD paper explains why a private treaty sale during foreclosure can suit everyone: the buyer gets the property, the owner's debt is redeemed, and the bank is repaid by the buyer or a financier. The author also calls the legality of such sales questionable in West Malaysia, particularly after an order for sale. Section 266 of the National Land Code lets the owner pay the amount due plus expenses before the sale concludes, which ends the order. This route needs a cooperative owner and your own lawyer.
Our bank-by-bank guide compares how lenders sell. Current lots are grouped by lender: Public Bank, RHB, Maybank, CIMB, Hong Leong and UOB.
Why do most lots still go through auction?
Titled property. Sections 257 and 263 of the National Land Code say an order for sale by the court or land administrator must provide for a public auction, with a reserve at the estimated market value. The Malaysian Bar paper sums up the case law: the Code provides one method of judicial sale, the public auction. If no bid reaches the reserve, sections 259 and 265 require the property to be withdrawn and put up again later, at the same or a new reserve. So an unsold titled lot does not automatically become a private sale.
LACA lots. Property without its own title stays registered under the developer. The Edge explains that the bank needs no order for sale here and sets the reserve itself. Clause 12.1 of UOB's LACA lets the bank sell by public auction or private treaty, at its absolute discretion. That gives you no right to have an offer considered. The FAQs of CIMB and Hong Leong describe open bidding, not offers after an auction, and CIMB's terms say the reserve can change without notice.
The Proclamation of Sale tells you which kind of lot you have. If a LACA lot fails to sell, you can write to the bank's auction team, with no guarantee.
What do BidNest's records show about unsold rounds?
The BidNest market report, covering 10,443 auctions from 2 July 2025 to 30 October 2026, puts overall clearance at 38.5%. Each unsold round drops the reserve by about 10%, and clearance climbs with the round:
| Round | Clearance rate | Auctions |
|---|---|---|
| 1 | 10.2% | 1,666 |
| 2 | 26.3% | 1,645 |
| 3 | 35.5% | 1,672 |
| 4 | 47.6% | 1,618 |
| 5 or later | 53.6% | 3,840 |
That fits The Edge's account of unsold lots moving to the next auction, typically with a price cut at the discretion of banks or the courts. See our guide to auction rounds.
Waiting has a cost, because no offer locks in a lot. In the rolling 12 months of sold prices, 1,364 sales of RM300,000 and above, the median was RM433,750: 44.9% sold at exactly the reserve and 55.1% were bid above it.
How do you track a property that went unsold?
BidNest lists property whose first-auction price was RM400,000 or more, along with its discounted later rounds.
- Open the building page. The Residensi Hijauan page, for example, collects live lots and past auction records.
- Read the auction record. It stays up after the auction, showing the date, round, reserve and outcome, with the unit number withheld.
- Recheck all live auctions for a new date and round.
- Prepare early. Get the Proclamation of Sale, inspect the property and use the auction cost calculator. A court sale requires 10% of the reserve to bid and the balance within 120 days, with no extension. Other lots follow their conditions of sale, usually 90 or 120 days.
The full process is in our lelong guide.
How do you spot a fake "direct from the bank" deal?
In October 2026, Miri police said they were investigating a man's report that he lost RM363,887.49 after an acquaintance offered him five "bank auction houses" in Kuching and promised to handle the paperwork. Police advised checking a property's status through official channels, engaging a licensed lawyer before paying, and not transferring money to third-party accounts without verification. A genuine offer can be confirmed through the contacts on the bank's official site.
This guide is general information, not legal or financial advice.
Frequently Asked Questions
Can you buy a lelong property directly from the bank?
Usually not once an order for sale exists, because the National Land Code requires a public auction. Banks do sell directly through their own channels, such as Public Bank's written offers and RHB's open tender.
Can I make an offer after an auction fails?
A titled lot with no qualifying bid is withdrawn and auctioned again on a later date. For a LACA lot you can ask, because contracts like UOB's allow private treaty, but the decision is the bank's. The usual route is to bid in the next round.
What is a private treaty sale of a lelong property?
It is a negotiated sale rather than open bidding. In West Malaysia, an order for sale provides for public auction only, so private treaty is more relevant to LACA lots and sales by the owner.
Does the reserve price drop if a property does not sell?
Usually, yes. BidNest's records show a drop of about 10% for each unsold round. The law allows a re-auction at the same or a new reserve, so confirm the figure in the latest Proclamation of Sale.
Can the owner sell the property before the auction?
Yes, provided the bank's debt is settled. Section 266 of the National Land Code lets the owner pay the amount due plus expenses before the sale concludes, which ends the order for sale. A private sale after the order is legally questionable, so take legal advice.
Next step
To check an unsold lot, including its auction date, reserve price and financing, contact Crispina Ng, a lelong property specialist with 12 years in bank auctions and a former banker.
Sources
Speak to Crispina Ng for the latest auction details, reserve price and bidding process.