Can someone cancel the house I bought in an auction?

lbslbs

Any questions please refer to the author. I'm merely the "poster". Thank you.
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This was the question posted to us by one of our clients who bought a single storey terrace house at Taman Desa Jaya, during a property auction fair conducted by the bank. For those of you who have read my previous articles on property auction before, you all knew this is what we called a Laca case, i.e. properties without individual titles issued.

After two months signing the contract of sale, and he has signed the loan agreement,and he has started doing the renovation(i would not advise this though) he suddenly got a call from the bank saying that the case need to be withdrawn.
Apparently, the lawyer who's ncharged of this property for the bank has made a blunder, i.e. thisshould be a non-laca case, simply because the individual titles has already being issued and registered under previous owner. As a result,the "correct" and "legal" way of disposing this property has to be done through Highcourt , and not by the bank themself. Therefore, the bank has to withdraw this case and re-auction the property through highcour tprocedure.

So, in the end of the day, not only this purchaser will lose all his legal fees, he's also going to lose his renovation.

Two lessons we've learnt from this case:
(1) Never start renovating the house before the completion of the conveyancing procedure of your property
(2)When you want to bid for a laca property, and you already knew thetitles have been issued, please do a land title search on it. If you find the previous owner's name has already being registered , then voice your doubt to the auctioneer, because this should be a non-lacacase instead of a laca ones.

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About the author: Boon Ping is a Registered Estate Agent (E 1690) under the Board of Valuers, Appraisers and Estate Agents Malaysia since 2002. He has been elected as the Chairman of Malaysian Institute of Estate Agents Johor Branchsince 2004 until now. He is currently employed as General Manager under Tiram Realty, an established real estate agency of over 20 years history in Johor. For more free tips and advice on real estate matters, check out the website: http://tiramrealty.com.my

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[ Last edited by  medangmru at 4-5-2008 12:04 PM ]

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