What to Know When Buying an Auction House?

Hi, I can help you by sharing what to know when buying an auction house. I was looking for a bank auction property last month and hence looked up the same thing to be prepared. I found that this process involves running a legal due diligence to begin with. Let me share with you the important list of things that I came across.

What to Know About Buying a House at Auction?

Before you buy a house at the auction, there is a list of things to go through. Here they are:

1. You need to check the legal titles of the property you’ve chosen. The bank is not held accountable for checking a property’s legal aspects in the auction. So, to be clear with the ownership and no pending tax dues, etc, you must get the property papers checked by a lawyer by opting for

   NoBroker Due Diligence

   .

2. You require a minimum of 25 percent of the bid amount as a liquid fund, which is to be deposited within 1 day of the auction date. If you don’t have the needed funds, you can go for a home loan.

3. You should run an inspection of the property’s physical condition. Ask the bank to fix a date for you to visit the property. Make sure that there are no bank notices on the property’s door or the society’s noticeboard.

4. You then need to submit the tender form with an EMD. EMD or Earnest Money Deposit is a security deposit paid to show your seriousness in buying the property to the bank.

5. You are required to submit the bidding form, which is a document that specifies the price at which you are willing to purchase the property. 

6. The successful bidder will be announced after the auction. If you win, you’ll need to deposit a percentage of the bidding amount within 1 day as said earlier. In the case of failure to do so within the given time, you’ll lose the property and the EMD amount paid before. 

7. Get the sale certificate from the lender by paying the complete value of the property. 

8. You must register the property at the registrar’s office. It will ensure that the property is legally under your name. Also, the sale certificate must be signed by the bank and registered at the same time.

This is all about what to know when buying an auction house. I hope this helps.