How to Join a Property Auction in Malaysia: Step-by-Step Guide

Property auctions (lelong) in Malaysia offer a unique opportunity to purchase properties below market value. However, the process can be intimidating for first-timers. This guide walks you through every step, from registration to winning the bid, so you can confidently participate in your first auction.

1. Find Suitable Auction Properties

Start by browsing auction listings on platforms like BidNest, which specialises in bank auctions in Kuala Lumpur and Selangor. Look for properties that match your budget and investment goals. Pay attention to the reserve price, location, and property type. You can also check the Proclamation of Sale (POS) document for full details.

2. Conduct Due Diligence

Before bidding, inspect the property physically if possible. Check for any encumbrances, outstanding debts, or tenancy issues. Engage a lawyer to review the POS and the conditions of sale. Remember, properties are sold on an "as-is where-is" basis, so uncover any hidden costs.

3. Register for the Auction

Registration is typically required 1-3 days before the auction. You’ll need to submit:

• A copy of your NRIC (for individuals) or company registration (for corporations)
• A banker’s draft for the deposit (usually 10% of the reserve price)
• Completed registration form provided by the auctioneer Registration can be done online or in person at the auctioneer’s office.

4. Prepare the Deposit

You must bring a banker’s draft (not a personal cheque) made payable to the bank or auctioneer. The deposit is typically 10% of the reserve price. For example, if the reserve price is RM300,000, you need a draft of RM30,000. Some auctions may require a higher deposit, so check the POS.

5. Attend the Auction

Arrive early on auction day. The auction is usually held at the bank’s premises or a designated hall. Bidding starts at the reserve price and increases in predetermined increments (e.g., RM5,000 or RM10,000). Raise your bid card clearly. The auctioneer will announce the winning bid after three calls.

6. Win the Bid and Pay Balance

If you win, you’ll sign the Memorandum of Sale immediately. You must pay the remaining 90% within 90-120 days (or as stated in the POS). Late payment incurs interest at 8% per annum. The bank will issue a Letter of Award (LOA) after full payment.

7. Post-Auction: Transfer Ownership

After full payment, the bank will execute the transfer. You’ll need to pay stamp duty, legal fees, and other charges. Engage a solicitor to handle the process. Once the title is transferred, you officially own the property.

BidNest specialises in helping buyers find and bid on lelong properties in KL & Selangor. For personalised assistance, contact our agent Peter Tan. Browse our listings today and take the first step towards owning your dream property at a bargain price!