A closer look at what happens in Singapore knock down sessions and what a buyer should look out for.
Okay so you looked at my site and there’s this magnet property that you’re keen in in one of the latest auction list.
Inspecting the property before auction day
There’s always details on the Auction List on the person-in-charge of the property. You could arrange with him/her to view the property prior the auction before deciding whether to bid for it. This is the best time to also do your full due diligence on the property such as the state, the size, the maintenance cost etc.
Remember, it’s always a caveat emptor in any real estate transactions.
Seek Legal Advice
Like arranging for inspection prior to auction day, you should also seek legal advice should you be really interested in one subject property. Relevant legal documents are always available before an auction for your solicitors to review. Also you could check with your lawyer on the legal aspects on the eligibility of your transaction (e.g. foreigners are not allowed to buy landed unless with LDAU clearance)
Always Get These Things Ready Before Auction
Once the property is being knocked down to you, you will have to prepare a deposit of 10% of the purchase price and sign the sales and purchase agreement, which is a legal binding document to complete the sale and pay up the balance of 90% upon the completion, which is usually 10 weeks later. So cheques (two in case of GST), your identification card and/or Power of Attorney (POA) if you’re representing someone.
Stay in Auction Room once bidding starts
Some properties sell quickly and you may find that while you have stepped out, the property that you are interested in was sold.
Methods of Bidding
You could raise your hand, you could show your hand, you could do anything as long as you get the auctioneer’s attention.
After the Property is Hammered Down..
As soon as the property has gone down the hammer, the contract will be drawn up. You only need to furnish the auction staff with your identification card, pay the 10% deposit and you will promptly receive a memorandum of sale the same day.
Now go Get Your Property!
Congratulations. Now you know what happens in Property Auctions. Now go on, experience your first hand auction experience by heading to the latest property auctions today (: