Don't Let the Legal Terms Intimidate You

When considering an auction property, many buyers focus on the reserve price and whether the property fits their budget. However, one of the most important documents is often overlooked, the Proclamation of Sale (POS). While many assume it is a complicated legal document meant only for lawyers, the POS is actually an essential guide for buyers. It contains key information about the property, the auction requirements, and the terms and conditions that every bidder should understand before participating.

Whether you are a first-time homebuyer searching for an affordable place to live or a beginner exploring property investment, understanding the fundamentals of a Proclamation of Sale (POS) can help you avoid costly mistakes and discover valuable opportunities.

Before we go further, let’s first understand what a Proclamation of Sale is.

What Is a Proclamation of Sale?

A Proclamation of Sale is a legal document issued to announce that a property will be sold through a public auction on a scheduled date. It contains important information about the property, including:

·         The auction date, venue and type of auction (online/physical/hybrid).

·         The particulars of property (Location and description).

·         Any special conditions that bidders should be aware of (ie. Lot Bumiputra). 

·         The reserve price of the property. 

·         The deposit required to participate together with payment methods. 

·         The salient terms and conditions of the auction.

This article serves as a practical guide to help readers understand the key things they should know before purchasing an auction property.   

Why Every Buyer should carefully read the POS? 
Many buyers focus only on the property's photos and reserve price when considering an auction property. However, experienced investors know that the real value lies in the details contained in the Proclamation of Sale (POS), as its terms and conditions can significantly influence the decision to purchase. For example, the POS may indicate: 

·         Whether the property will be delivered with vacant possession. 

·         Whether the buyer will be responsible for any outstanding charges or liabilities. 

·         The required payment period after the fall of the hammer. 

·         Any special restrictions imposed on the property.

As a licensed auctioneer of almost 40 years, we encourage bidders to at least read the main terms in the Condition of Sale on who is liable for the charges and risks even if the risks are low.

Don't simply trust or depend on third party/agent’s verbal information because eventually you will be responsible as buyer.



A thorough understanding of these details enables buyers to assess the property more accurately, manage expectations, and minimise potential risks before placing a bid. 

Conclusion
A Proclamation of Sale is more than just an auction announcement. It is a valuable source of information that helps buyers understand the property's legal status, auction requirements and potential risks. Taking the time to read and understand the POS before bidding can help purchasers make better decisions and approach property auctions with greater confidence.