Seven Steps to buy properties in Bank Auctions

Posted in Articles on Oct 28, 2017

Buying properties in Bank Auctions is an intelligent financial decision. The following are the seven steps to buy properties in Bank Auctions (https://bankauctions.in/) / Foreclosure properties (http://foreclosureindia.com/).

i. Read The Auction Notice Carefully,

ii. Verify Documents,

iii. Inspect property,

iv. Make Finances ready,

v. Submit tender,

vi. Participate in Auction,

vii. Get Sale certificate.

1. Read The Auction Notice / Sale Notice Carefully: Advised to take a printout of Auction notice and read the details mentioned in the advertisement carefully and note down the important aspects like contact details, inspection date, reserve price, earnest money deposit ( EMD), cost of auction forms, tender submission time & date, auction date & time and finally e-auction website details.
2. Documents Verification: Enquire with the bank / financial institution about further information of the property. Visit the Bank and see all the documents such as registration documents of the present borrower, link documents, latest encumbrance certificate pertains to the property, approved layout for plot by the competent authority, approved plan for flats / houses by competent authority etc. If required, consult with a solicitor / advocate before the auction. Once this aspect is clear, you can proceed further.
3. Inspection of the Property: Visit the site of the property as per inspection schedule given in Sale notice. Consult people around the property to know the price prevailing in that area. While inspecting the property observe the present physical condition of the property, enquire about the pending property taxes, electricity dues, welfare associations maintenance dues. The property comes as is, as such any pending dues should be added to your consideration price before quoting.
4. Get your Finances Right: Please make sure that you are prepared for the price to be paid for the property. If you have ready cash, you can clinch the deal faster and possess the property fast. If you are thinking of availing a Bank Loan, you may approach some bank for sanction of pre-approval loan to complete the transaction in the specified time frame very smoothly.
5. Submission of Tender: Submit the bid at the specified branch before the due date and time, along with demand draft / Banker cheque as EMD ( earnest money deposit ), copies of purchasers PAN card, photo identity card and residence proof. In most of the cases the EMD amount is 10% of the reserve price.
6. Participating in Auction: Based on the data & statistics of the foreclosure properties / bank auction properties in India, around 60% of the Bank auction properties are unsold, due to various reasons. Around 30% properties are getting one bid only. Around 10% properties are getting two or more bids. In case of E-Auction, please take training from the E-Auction service provider at free of cost, the details of e-auction service provider are available in E-auction notice. Any Bidder / Investor is successful, if he/ she is the highest bidder in the Auction. Bidder / Investor needs to pay 25% of the highest bid amount minus 10% EMD amount already paid, on the same day of the auction. Balance 75 % amount is to be paid with in 15 days / 30 days as specified by the Bank / Financial Institution.
7. Sale Certificate & Registration: After payment of the total amount either from own sources or through Bank loan, a sale confirmation certificate will be issued. Investor have to pay the stamp duty and get the property registered on their name. The Authorized officer will register the property on behalf of the Bank. After completion of registration, the physical possession of the property will be handed over to the Investor. All the real estate Investors / NRI investors are invited to utilize this opportunity to buy good properties at much discounted rate. Bhargav, Managing Partner of Foreclosureindia.com says, “During the last 8 years we have created awareness about Bank Auctions and Transparency by disseminating the information of Bank Auctions at free of cost.

From November 2017 onwards, we are introducing premium service for the investors with better information duly giving more information with better search facility. All NRI investors are requested to write to us at assist@foreclosureindia.com, for any assistance required for buying Bank Auction properties in India.