By Arosh John | Founder – John Real Estate | Editor-in-Chief – Thane Real Estate News
Buying a flat through a bank auction is a unique experience, distinct from a regular property transaction. The process, while entirely online and governed by strict rules and time-bound steps, is designed to be transparent. However, the real challenge for many buyers arises on auction day: understanding how to log in, how the bidding commences, and how the winner is determined.
Here, I break down the auction flat purchase process step by step, equipping you with a clear understanding of what to anticipate before you make your bid.
Step 1: Pre-Auction Registration
- Complete your KYC with the bank or its authorised officer.
- Pay the Earnest Money Deposit (EMD) as mentioned in the sale notice.
- Receive login credentials or activation for the e-auction platform.
Step 2: Log in on Auction Day
- At the scheduled time, log in to the portal with your credentials.
- The dashboard shows property details, the reserve price, bidding rules, and the live auction timer.
Step 3: Reserve Price & Bid Increments
- The auction begins at the reserve price fixed by the bank.
- Each auction has a minimum bid increment (for example, ₹25,000 or ₹50,000).
- Each new bid must be at least this increment above the last valid bid.
- All participants can see the current highest bid in real time—but not the names of the bidders.
Step 4: The Auto-Extension Rule
- To ensure fairness, most banks use an auto-extension or “soft close” rule.
- If someone places a bid in the final few minutes (usually 5 minutes) of the auction, the timer extends by another 5–10 minutes.
- This cycle continues until no fresh bids are placed during the extension window.
Step 5: Closing & Confirmation
- Once no new bids are received in the final extension, the auction closes.
- The highest bid at or above the reserve price is forwarded to the bank for confirmation.
- If bids don’t reach reserve, the bank may cancel or reschedule the auction.
Step 6: After Winning
- The winning bidder receives a confirmation from the bank.
- Payment timelines begin: the balance must be paid within 15 days, extendable only in writing with the bank, but never beyond 3 months.
- Once full payment is made, the bank issues the Sale Certificate. This becomes your ownership document, and you should:
- Register it at the Sub-Registrar, and
- Apply for a property tax transfer / name transfer with the municipal corporation so records officially reflect your ownership.
Tips for Bidding Smart
- Fix your ceiling in advance: Decide your maximum bid and stick to it.
- Stay logged in: Auto-extensions can extend the session beyond its expected duration.
- Use a stable internet connection: Technical glitches can cost you the winning bid.
- Keep extra funds ready: Some banks may ask for quick top-up deposits after the auction.
Final Word
The online auction process is designed to be transparent and equitable. Once you grasp the sequence—reserve price, bid increments, auto-extensions, and closure—the process becomes far less intimidating. Success in auctions is less about speed and more about discipline, preparation, and a clear understanding of your budget.
📚 Auction Property Series
This is Part 2 of my Auction Property Series:
- Bank Auction Properties: How the SARFAESI Process Works
- What to Do After Receiving the Sale Certificate
Looking to participate in a bank auction in Thane? At John Real Estate, we help clients navigate the online bidding process, set realistic bid ceilings, and complete the transaction smoothly.
About the Author
Arosh John, the Founder of John Real Estate and Editor-in-Chief of Thane Real Estate News, brings over a decade of experience in the Thane property market. His expertise in guiding homebuyers, investors, and NRIs through complex real estate transactions—including new project sales, resale markets, luxury villas, and auction properties—instils confidence in his readers.
Disclaimer
This article explains the general online bidding process in bank auctions under SARFAESI. Specific rules (increments, extension periods, deposit conditions) vary by bank and auction portal. Always read the official sale notice and portal instructions before bidding. Payment deadlines are legally capped at 15 days, extendable in writing but never beyond 3 months. Buyers remain responsible for legal, tax, and due diligence before participating.
