A CLERK who thought she had landed a good buy of an apartment in a public auction had a rude shock when she was asked to pay about RM10,000 extra to settle outstanding bills relating to the property in Penang.

M.C. Tan, who paid a 10% deposit for the RM120,000 apartment, was asked to settle quit rent, assessment, maintenance and sewerage charges for several years.

“I was shocked as the licensed auctioneer had told me before that I do not have to pay anything extra,’’ she told a press conference called by the state Gerakan legal bureau yesterday.

Tan subsequently decided to terminate the sale and purchase agreement even though her deposit would be forfeited.

However, the auctioneer had told her that she would still have to bear any “deficiency” which might result from the re-sale of the apartment.

“I would also have to pay the balance of the purchase price if the auctioneer could not sell the apartment for one reason or another,’’ she said.

Tan, whose earns RM1,000 monthly, said she had been having sleepless nights over the issue. Bureau secretary Lio Chee Yeong urged those planning to buy properties in public auctions to be wary of the terms of conditions of the sale which were in certain cases prepared by lawyers representing financial institutions.

“They must first check whether there are any outstanding arrears to the property as the amount may have to be borne by them,’’ he said.

Lio said purchasers might also have to be responsible for any damages or losses to the property from the time of the auction sale.

He said purchasers might also have to use their own money to take possession of the property without any obligation on the part of the lenders, usually financial institutions or their agents, to provide vacant possession.

If the property sold was subject to the consent of the developer or any relevant authority, it could be the responsibility of the purchaser to apply for the consent and any expenses arising from this must also be borne by them, he added.