Thursday, February 3, 2011

How to participate in an Bank Auction ?

The first Question all of you ask yourself after visiting our site is -

How do i participate in an auction?

So here is the Step by Step process of how the auction is conducted and what you have to do to participate in it:

Step 1 : Read The Notification all the info you need, all the dates,times and prices are given in it.

             Note down the following : Reserve Price, EMD, Date of Inspection, Date,Time & Place of Auction,
             Time and Place where you can collect the Tender form and Last Date of Submission of Tender.

Step 2 : Collect the tender form at the given place and time.
Step 3 : Take a DD equivalent to the EMD. (EMD 10%* of Reserve Price)
Step 4 : Submit DD along with Filled in Tender Form before the Due Date/Time along with any ID proof they asked for (PAN Card/Address Proof/Voter ID etc...)

You are now qualified to participate in the Auction.

Step 5 : The Authorized Officer will start the bidding process at the reserve price at the given time.
Step 6 : State your bid and raise it as you deem necessary.
Step 7 : If you are the highest bidder. 

Congrats You have now taken the first step in making The property yours.

              If you are not the highest bidder NO PROBLEM your DD will be returned to you.

Step 8 : Deposit 25%* of the bid amount (Inclusive of the EMD) at the bank on the same day.
Step 9 : Deposit the remaining amount within 30* days of the auction

You have now succesfully bought the Property via Bank Auction.

Step 10 : Register the property under you name.

The End

If you are the highest bidder and you do not follow steps 8 & 9 then you deposited Amount/DD will be forfeited.

* - The figure may vary from Bank to Bank and Branch to Branch. So check the Notification for exact Info.
EMD may be 10-25% of reserve price
The Amount to be deposited by the highest bidder may vary from 15-30%
Time to deposit the remaining amount may vary from 15-45 Days. Time may be extended by agreement by the Manager/Authorized Officer.

Next :  How to read The Notification.


  1. I dont know Step 2 : Collect the tender form at the given place and time. Please inform where can I get tender form and what is EMD. my email Id is

  2. You can collect the Tender Form at the branch,the time and place are usually given in the notification.
    EMD is Earnest Money Deposit which you have to deposit in the bank in order to qualify to participate in the auction.If you are not the highest bidder in the auction then the EMD will be returned to you.

  3. I am new to this auctioned property. If I win the auction, is it possible to get bank loan for the same property just like any other property?

  4. Yes you can apply for an home loan or an personal loan.

    You can compare and choose where you want to apply for a loan here -

    I suggest that you have the loan cleared if possible before the auction date itself because
    If there are any delays and you do not pay within the allotted time then you will forfeit the 25% deposit you made on the day of the auction.

    1. approched so many banks (HDFC, ICICI, AXIS) they refused to provide the loan for the auctioned property.

  5. can the borrower sue the person who has bought the property in auction. i mean, can the borrower still go to the tribunal after the auction process is complete. what will be the postion of the buyer in such circumstances ?

  6. The borrower cannot sue the person but the borrower can go to the tribunal after the auction. If any wrong doing is found on the side of the Institution the sale may be cancelled. But in such a case the buyer can sue the Institution in return.

  7. Do i get home loan on Auction property and upto what percentage of property value ?
    What is the procedure to get loan for such property?

  8. Do i inspect the property before the auction,and what the process ?

    Also who holds the liability of any due on the propery ?
    Is all those Dues details will sare to the people who are joining the auction ?

  9. Yes,Ruchirs question above is very important!Whats the risk in being a Buyer,does the Institute provides risk cover,incase of hidden liabilties.What if there are huge amount of unpaid taxes?What if the property is disputed?
    And most importantly does the institution in its power guarantee a smooth takeover?

  10. if am a successful bidder, will the EMD be returned back or its adjusted in final settlement which needs to be paid within 30Days to the creditor/bank.

    Also during registration period its required for an buyer and seller to be available at the registrar office to be available,would it be a creditor representative or actual owner of the property

  11. how do I go to the property for inspection before filling the form? what is the process to see the property i want to bid for?

  12. I want to bid for a property under bank auction.
    However, since all such auctions are on "as is where is basis", before bidding I would to get Title Clearance Certificate & Due Diligence from my Lawyer.
    1. Can I legally ask the bank to provide me with copies of:
    A. Its mortgage deed with the defaulter
    B. Copy of Registered sale Deed, Share Certificate, etc. in its possession
    C. Copy of its own Title Clearance Certificate
    4. List of places (like Sub Registrar's office, Society, etc) where bank has created lien

    If Answer to above Question is yes,
    1. What is the procedure?
    2. What if bank refuses to entertain any such request?
    3. Can I approach any authority to ask the bank to give copies of relevant documents for Title Verification?
    If yes, whom?
    Dr Anil Saraogi

  13. but how we will come to know where is the auction going?

  14. Some very important questions are asked. Author/Anybody got any reply?

  15. What happens to the properties which are listed on where the sale is not made or closed? Will the new auction dates be updated later on, on this website??

  16. dear sir ,there are already lots of vip questions asked .pls answer them immediately & prove your credibility asap so that prospective buyers will be free from doubts & fear involved in buying .
    regds Deepak

  17. hello all,
    i am a builder from hyderabad. all are advised to check, if you are going for a home loan, that the bank you are approaching for a home loan is providing loan on auctioned property. because most of the banks are refusing home loans on auctioned properties.

  18. Hello All,

    As far as my experience goes with these bank auctions, here are the facts:

    1. As the bank is selling the properties "as-is and where-is" basis. They wouldn't guarantee you about any taxes due on the property. It's the buyers responsibility to do the due diligence.

    2. Bank won't give you the copies of the title,lien or any other documents, but if you go to the bank they will show you the copies. you can make a note of any of the information that's necessary.

    3. It's always possible that the defaulter had a intention of fraud from the start. In most of these cases, what they do is, they get the loan from the bank and they will sell the same to someone else in the market. So now who owns this property ? It all depends on how the transactions happened. If the defaulter got the loan from the bank first and then sold else where, then the bank has the full rights. If its vice versa, then the bank doesn't have any rights on the property.

    5. If bank is aware of any dispute with the property, they are responsible to share this with the buyers, when you ask. So make sure, you ask them whats the story behind this mortgage and if there are any disputes.

    6. Once you have all the information, then you can go ahead get the EC for said property and make sure that names on the EC are same as what you saw in the bank. If necessary, go to the registration office and get the copies of link documents from the office. And also make sure you inquire with the municipalities/authorized office about any unpaid taxes on the property.

    7. And also make sure you do the inspection of the property thoroughly, if needed take any experts with you to check the structure and the quality of construction, if any.

    8. Don't take a haste decision and repent later. Make sure you have ample time to do all this due diligence. once you are comfortable and then depending on the taxes due/market value/inspection, you can decide whats your max offer for the property.

    GOOD LUCK with your hunt.

    1. Dear Mr.Ravi, Thanks for sharing your experience and providing useful information to the readers. Have you ever participated or represented any one in any auction and faced any issues with any one related to auction, if yes, then kindly share your experience.

      M Basheer Ahmed

    2. Dear Mr.Ravi Thanks for providing such a valuable information. Have you ever participated in any such auction conducted by Banks and how was the experience, did you face any issues during or after the conclusion of Auction. Plesae share.
      MB Ahmed

  19. Just want to ask what are the legal procedure to take part in bank auction proeprty?

    (if person is not account holder of bank is he can take participate in auction, if yes what documents he need to produce?)
    if the person not account holder of bank, and on behalf of concern person can he able to make other person to be available at the time of auction? if yes what are the documents the concern person and other person both needs to produce in bank property auction?

    Your reply is most valuable for us.


  20. can i apply for homeloan for this properties in same bank or other banks

  21. thanks sir, its really very helpful information.
    Sir one request may get your no.