Buyers Guide to Auction
Is auction the right choice for me?
Transparent
An auction creates transparency amongst all parties. Widely use mode of sale by financial institutions and trustees.
Smart Investment Opportunities
Opportunities to purchase at fair market value. Terms are the same to all bidders and fair competition is ensured. Buyers determine the purchase price.
Assurance
Assurance for buyer that upon meeting the reserve price, the property will be sold by the commited seller.
Time Efficacy
Ability to view a range of offerings up for bid, all in one auction. Eliminates long and lengthy negotiation period. Purchasing and closing dates are known. Reduction of time needed to purchase property
Welcome to the auction guide for buyers who may want to consider buying a property in a property auction.
A property auction is a manner of selling property by bids, usually to the highest bidder through open & public competition. Property auction is not new and is a mode of sale increasingly preferred across property types and industries.
A Reserve Price is pre set by the Vendor and is kept confidential at all times.
Property auctions are subject to the Singapore Law Society’s Conditions of Sale 1999 and 2012, and the Special Conditions of Sale given for each property.
How can buyers benefit from auctions?
Preparation
It is important to understand and prepare for the auction.
Browse through the auction listings
The auction listings are usually published three weeks before the auction. The listings are also available online. You can also sign up with us for a monthly auction listings.
Property inspection
Once you’ve found a property you are interested in, do give the marketing agent to arrange a viewing.
Due diligence
Check all legal documentation, addendums and notices for each property thoroughly.
Speed of Sale
Quick disposal reduces long term carrying costs e.g. taxes and maintenance, commonly associated with other less efficient forms of sale
At The Auction
1
Documents
Bring all the required documentation.
Successful bidders will be required to present; photo ID, proof of address and their solicitors details to be entered on the contract.
2
Deposit
A deposit is immediately required after purchasing your property. You will be required to pay between 5% to 10% deposit on the property according to the condition of sales (COS).
Cash, credit cards or international debit cards are NOT accepted.
Sales Type
- Mortgagee sale : Sale by bank, when the mortgagor does not meet his/ her obligations under the terms of mortgage
- Owner sale : Sale by an individual or company
- Trustee sale: Sale by an individual or an institution (e.g. bank or trust company) or both; who oversees the process and makes certain the property is sold in a fair and equitable manner
- Estate sale : Sale of assets owned by a person who is usually deceased or moves to an assisted living facility
- Probate sale : Sale of assets owned by a deceased who did not name anyone in the will to sell; Probate Court appoints a relative or friend of the deceased to handle the sale
- Sheriff or Bailiff sale : Sale of property that is repossessed to satisfy an unpaid obligation
- Receiver sale : Sale by a court appointed individual or an institution who is given custodial responsibility over assets that serve as collateral for a loan in default
- Developer sale: Sale of property by real estate developers who obtain land, prepare it for development and manage the construction process
- Liquidator sale : Sale of assets by liquidation to dissolve a business, company or estate
Frequently asked questions
- Auction and private treaty transactions on all types of properties
- Consultation and advisory on the reserve price of properties
- Undertake the marketing of properties on behalf of vendors
- Analysing the property market, property trends and prices of comparable properties
- Advising and assisting bidders for pre-inspection of property and guiding them on auction floor procedures and contract signing
COS or condition of sales is a legal document of a Sale & Purchase Agreement which is signed by the Purchaser after a successful bid is won in an auction sale.
However, a COS will not be applicable if the deal is not contracted via auction.
No, the Codition of sales or COS is only issued on the successful knock down of a property during auction.
For a private treaty sale, a standard Option To Purchase (OTP) will
be used to conclude the deal instead.
