SBI mega property e-auction across India starts today: Key things to know
SBI mega e-auction: All kinds of properties like housing, residential, commercial, industrial, etc. are the properties offered by the SBI e-auction. SBI said in a tweet said "Bid for the best! Here’s your chance to buy cheaper Residential & Commercial Properties, Land, Plant & Machinery, Vehicles and many more. Attend SBI Mega E-Auction and place your best bid".
State Bank of India (SBI) is going to conduct an electronic auction (e-auction) for the mortgage properties on March 5. So, if you are planning to buy a home at a very lower price than the existing market rates, you have a chance now.
All kinds of properties like housing, residential, commercial, industrial, etc. are the properties offered by the SBI e-auction. SBI said in a tweet said, "Bid for the best! Here’s your chance to buy cheaper Residential & Commercial Properties, Land, Plant & Machinery, Vehicles and many more. Attend SBI Mega E-Auction and place your best bid".
Bid for the best! Here’s your chance to buy cheaper Residential & Commercial Properties, Land, Plant & Machinery, Vehicles and many more. Attend SBI Mega E-Auction and place your best bid.
— State Bank of India (@TheOfficialSBI) March 1, 2021
Know more: https://t.co/vqhLcagoFF #Auction #MegaEAuction #Properties #DreamHome #Land pic.twitter.com/80CNZueg6k
SBI mentioned on its website that "We at SBI are very transparent when putting immovable properties, mortgaged with the Bank / attached by Court order to auction, by furnishing all the relevant details that can make it an attractive proposition for bidders to participate in the auctions. We also incorporate all relevant details and state whether the same is freehold or leasehold, give its measurement, location etc., including other relevant details in the public notices issued for auctioning".
SBI mega e-auction - Things required for participating
-EMD for the particular property as mentioned in the e-auction notice.
-KYC documents need to be submitted to the concerned SBI branch.
-Valid digital signature: Bidders may approach e-auctioneers or any other authorised agency to obtain a digital signature.
-Once the bidder submits the EMD deposit and KYC documents to the concerned branch, their registered login ID and password will be sent via email id by e-auctioneers.
-Bidders need to login and bid during the auction hours on the date of e-auction as per auction rules.
The right price: Although it is a general perception that the properties available in the auction are cheaper, experts say it may not be the case always. “The reserve price in case of an e-auction is generally the circle rate. The bidding starts at this price. However, it is possible to get the property at a price lower than the market rate," said Bhavin Gada, partner, Strategy Law Partners, a Mumbai-based law firm. Before going for bidding, it will be good to do one’s own research about the market price of the property to check if you are not paying a higher premium for it. The e-auction process is transparent. “The bank does know your customer (KYC) of the bidders and the other bidders know the count of bidders and the price they are bidding," said Gada.
Physical condition: The information related to the property is available in the public domain. Therefore, it will be better to do the physical verification of the property before you bid for it.
“The bank may have further leveraged the property or may have used it to provide accommodation to the officials, therefore, it will be good to do the physical verification of the property to understand its physical state," said Gada.
Clear title: The acquirer of a property through an e-auction should be wary about the title of the property. It is important to check that the title flow of the property is clear. “While prima facie it would be presumed that the properties being auctioned would be free of all legal impediments, considering that properties could be embroiled in various disputes, which may not be easily decipherable through a general check is always a worry. For instance, if a property is entangled in a family or inheritance dispute, there are tenancy or title or acquisition disputes, tax claims, etc.," said Vaibhav Gaggar, managing partner, Gaggar and Associates, a Delhi-based law firm.
“Unfortunately, the authorities put up the property for e-auction on an ‘as is where is basis’ and clearly state that the intending buyer has to conduct his own due diligence and assessment of legal impediments if any. Since there is no central nodal point for conducting due diligence of any property, let alone in a digitized manner, it’s almost impossible for anyone to conduct a 100% thorough due diligence. Having said that, thorough due diligence can at least lead to significant risk mitigation, even if not a complete risk waiver. That process must be adopted before placing a bid," he added.
Therefore, you must do the due diligence on your own before bidding for the property. Take the help of a solicitor, if you are not able to do it on your own.
