Buying an auction property sounds exciting, but you need to be clear, calm and informed. Below is a point-by-point breakdown of what to check and why it matters.

1. Do not get blinded by the low price.
An attractive low price normally carries with it some degree of risk. Understand why the property is being auctioned and what problems forced the borrower into default.

2. Check the property title

Ensure that the ownership chain is clear. Look at court cases, disputes, multiple mortgages, or missing approvals. A defective title could block your possession or resale.

3. Check the type of possession

There are two types:

Symbolic possession means that the bank has legal control of the property but it may still be occupied.

Physical possession: Property is vacant and bank has total control.

Always prefer physical possession. Symbolic possession can lead to long fights.

4. Physical inspection of the property

The place should be visited. Confirm whether the property is vacant, damaged, encroached upon, or occupied against the law. Photos generally tend to camouflage the truth.

5. Read the auction notice carefully

Key terms to understand:

EMD: Earnest Money Deposit-This is a refundable deposit you pay to participate.

Reserve Price: The minimum price set by the bank.

Bid Increment: Smallest amount by which each new bid must be raised.

Date & Time of Auction: The last and final opportunity for bidding.

Payment Schedule: Deadlines for payment of the balance after an award.

6. See if any dues and liabilities are outstanding

Auction properties often carry unpaid dues. Check for:

• Electricity bills

• Water bills

• Society maintenance dues

• Property tax pending

• Bank pending charges

These you have to pay after winning, so include them in your budget.

7. Understand Legal Risks

Check for:

• Courts cases

• Family disputes

• Tenant disputes

• Government restrictions

If anything appears vague, take it as a warning signal.

8. Arrange your finances ahead of time Auctions move fast; you have a very short while to pay the remaining amount. If your loan is not ready, you will lose your EMD.

9. Overexcitedly do not overbid Auctions stimulate competition. Establish a fixed upper limit and adhere to it. Winning at the wrong price is worse than losing.

10. Delays are expected. Remain patient. Auction deals take time. Paperwork, approvals, possession and clearances can move slowly. Anticipate delays to avoid frustration. Final Words Auction properties can be a great deal if you know what to check and what to avoid. Slow down, verify everything, and make decisions based on a clear head instead of emotion.