Property auction is an event where foreclosed properties are sold to bidders at a price that is much lower than the market rate. Property auction is fast gaining popularity among investors in Malaysia.
To facilitate the auction, auction houses will manage the auction events and assist the direct transactions between buyers and sellers.
In Malaysia, the supply of foreclosed properties comes from the Loan Agreement Cum Assignment (LACA) auction. A LACA property auction is conducted by banks for properties without an individual / strata title while a Non-LACA property auction is conducted by the High Court for properties with an individual / strata title.
It is crucial to find out whether the property that is going under the hammer is a LACA or non-LACA property because the bidding procedures are different.