When it comes to buying auction properties in India, it's important to understand the minimum deposit you need to make. This deposit shows your seriousness about purchasing the property and is a key part of the bidding process.
In many cases, if you emerge as the winning bidder, you'll be required to deposit 25% of your bid amount within 24 hours. This amount includes any Earnest Money Deposit (EMD) you submitted with your tender form.
For example, if you bid ₹30,00,000 on a property, your initial deposit would be ₹7,50,000 (25% of ₹30,00,000).
After the bank auction, you typically have a window of 15 to 30 days to complete the remaining 75% of your bid payment. It’s essential to have your finances arranged in advance to meet these deadlines.
Auction House Guidelines: Different auction houses may set different rules regarding deposit amounts, so it's crucial to review the terms for the specific auction you are interested in.
Property Type and Value: The type and value of the property can affect the required deposit. Higher-value properties might demand larger deposits.
Location: Market conditions in various regions may also influence the deposit norms.
Understand the Auction Terms: Familiarize yourself with the auction documentation to know the specific deposit requirements and deadlines.
Prepare Financially: Ensure you have access to the necessary funds for both the initial deposit and the remaining payment.
Seek Legal Advice: Consulting a real estate attorney can provide clarity on your obligations and help you navigate the auction process smoothly.
In summary, when participating in an auction for property, be prepared to pay 25% of your bid amount within 24 hours if you win. After that, you have 15 to 30 days to complete the remaining payment. Being informed and financially prepared can make the auction experience more straightforward and successful.