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Terms and Conditions
| Buyer Contracts and Forms: |
Purchase Contract - Click Here to download this document.
Buyers Disclosure Checklist - Click Here to download this document.
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Terms of Auction Sale & Disclosures:
| Section 1: Contract of Sale | Section 8: Disputes |
| Section 2: Inspections | Section 9: Disclaimer |
| Section 3: Title | Section 10: Flood & Hazard Insurance |
| Section 4: Closing Costs | Section 11: Environmental Hazards |
| Section 5: Closing Date | Section 12: Lot Lines, Easements and Dimensions |
| Section 6: Earnest Deposit | Section 13: Agency Relationships |
| Section 7: Financing | Section 14: Equal Opportunity |
Section 1: Contract of Sale
The successful high bidders (Buyers) at every auction are bound by the written terms and conditions as promulgated for each sale. For personal property buyers, this is limited to the Bidder's Card which will be signed at time of registration (a driver's license is required to register). For real estate buyers, this also includes the Contract of Sale, which is executed immediately after the bidding. The sample Contract of Sale provided is amended as necessary for each particular auction, and is available with such amendments at the Open Houses, by mail or fax, and of course on-site the day of the auction. The act of bidding at the sale by anyone will be deemed a representation and warranty to the Seller and Auctions U.S.A. that he/she has read the Bidder's Card and Contract of Sale in their entirety, together with any amendments and/or attachments, prior to bidding. Attachments to the Contract of Sale may include a Seller's Disclosure Form prepared by the Seller, a Title Exam or Title Insurance Commitment prepared by a third party closing or title firm. If a potential bidder has not read and agreed to be bound by all of these documents prior to the auction, he/she should not bid.
Section 2: Inspections
Homes and Buildings are generally open for viewing one to two weeks prior to the sale unless otherwise advertised. Vacant land and lots may be inspected at your convenience. Registration is required at all Open Houses, and again at the Auction for a Bidder's Card (a driver's license must be presented). All properties are sold "AS-IS" (contracts are not contingent on any buyer or lender inspections) so Buyers should make any and all desired inspections during these viewing hours. All auctions are on-site unless otherwise indicated. All properties are made available solely at prospective buyers own risk and expense, including without limitation all dangers inherent, known, or unknown; and Sellers and Auctions U.S.A. expressly disclaim any "invitee" relationship which could be construed and therefore any liability incurred by any person inspecting, viewing, or attending the sale of any property.
Section 3: Title
A title insurance commitment for each property is prepared and usually available prior to the auction. The Seller warrants insurable title per the terms of the Contract of Sale, and will evidence same by obtaining the title insurance commitment from a third party title/closing firm identified in the Contract of Sale. The third party title examiner is deemed Buyer's attorney for title purposes only. Prior to bidding, potential buyers should review and understand the restrictions and obligations placed on the Property, whether disclosed in the title commitment, Contract of Sale, or otherwise of record or announced. Such restrictions may be found at the county courthouse where the property is located, the county and city planning and zoning commissions or departments, and by consulting with an attorney. At closing, the property is transferred by a deed prepared by Seller, free and clear of liens or encumbrances unless otherwise announced or specified in the Contract of Sale.
Section 4: Closing Costs
The Seller typically pays for certifying base abstracts (if necessary); curing any title defects (as determined by the third party title examiner); revenue stamps or other taxes customarily due from Seller upon filing of a deed; and 1/2 of the closing fee. The Buyer pays the third party title examination fee; the title search fee; the title insurance premium (based on sales price) and 1/2 the closing fee. Current year's real estate taxes are usually pro-rated through day of closing. In addition, Buyer may have additional closing costs relating to any loan secured by Buyer; any inspections ordered prior to the auction; and any survey, plat or other fees announced for the sale. Potential Buyers and Sellers should consult his/her lender and/or the closing company for a more detailed estimate of closing costs.
Section 5: Closing Date
Most auctions will require the Buyer to close (pay the balance of the purchase price plus closing costs) within 30 days from the date of the auction. Sellers will usually offer a Buyer reasonable extensions if more time is needed, but this decision is solely that of the Seller, and will include a per diem charge for each day the Buyer is late (.0005 x Sales Price Per Day, $150 per day minimum). By bidding, each potential Buyer is representing and warranting to the Seller and Auctions U.S.A., their agents, employees, and officers, that Buyer is accepting the Property in its current condition, including fixtures, equipment and appliances; is accepting the title per the title insurance commitment and is prepared to close with cash immediately.
Section 6: Down Payment
Most auctions will require the Buyer to make a cash deposit at the auction (if personal checks are accepted and electronically processed for immediate deposit) for at least 5% of the purchase price ($2,500 minimum) or in some instances 10% of the purchase price ($5,000 minimum). Please call our customer service department at 760-200-9405 or check the specific property information page on this website to confirm which down payment will apply to the property in which you are interested. THE DOWN PAYMENT IS NON-REFUNDABLE. If for any reason Seller does not perform per the terms of the Contract, the sole remedy shall be the return of Buyer's down payment.
Section 7: Financing
If a potential Buyer plans on using financing to close, then they should take all steps necessary to secure same prior to bidding, since auctions are never contingent on financing. There are many lending institutions that offer pre-approval for their financing before an auction, including for example sources found at Farm Credit Links or the National Mortgage Loan Directory. A list of local lending sources may be available at the Open Houses or by calling the offices of Auction U.S.A., and/or may be found in the Yellow Pages of the Telephone Book under "Banks" and "Mortgages". All explanations, representations, and disclosures concerning the terms, conditions and provisions of a commitment for financing are the responsibility of the Buyer's lending institution and not of the Seller or Auctions U.S.A.
Section 8: Disputes
Any party wanting to participate in our auction sales events must agree to accept our Dispute Resolution Agreement. Any party whether a Buyer, Seller, Realtor, Attorney, Escrow and/or Title Company, as well as, Auctions U.S.A. agrees to submit any claim arising out of a dispute (within 90 days of the auction, or 30 days of closing, whichever is earlier; all claims after this period are VOID per this Dispute Resolution Agreement.) to "binding arbitration governed by the rules and procedures of the American Arbitration Association." This agreement to arbitrate binds the parties to resolve a dispute through the arbitration process rather than any legal proceedings. If a potential Buyer does not agree to this or any other condition herein, he/she should not bid. For further information about the American Arbitration Association and its rules and procedures please call (212) 484-4000 and/or consult with an attorney.
Section 9: Disclaimer
Neither Auctions U.S.A., nor any of our agents, officers, or employees are experts regarding any property offered, including without limitation (a) the value, nature, quality or condition of the property, including without limitation, the water, soil, geology, (b) the income to be derived from the property, (c) the suitability of the property for any and all activities and uses which buyer may conduct thereon, (d) the compliance of or by the property or its operation with any laws, rules, ordinances or regulations of any applicable governmental authority or body, (e) the insurability, habitability, merchantability, marketability, profitability or fitness for a particular purpose of the property, (f) the manner or quality of the construction or materials, if any, incorporated into the property, (g) the manner, quality, state of repair or lack of repair of the property, (h) the flood or water damage history of the property, or (i) any other matter with respect to the property. BUYER IS THEREFORE STRONGLY ADVISED TO SEEK FROM INDEPENDENT SOURCES OF BUYER'S CHOOSING EXPERT ADVICE AND/OR INSPECTIONS, INCLUDING LEGAL ADVICE, TO BUYER'S COMPLETE SATISFACTION CONCERNING ANY PROPERTY AND THE TERMS OF SALE PRIOR TO THE AUCTION. Every potential Buyer should satisfy him/herself regarding all possible defects, if any, that might have been caused to structures or improvements to the Property as the result of soil movement, water conditions, settlement, storm damage, fire, or any other possible causes. Inspections every potential Buyer should obtain prior to an auction include, but are not limited to, those concerning structure and soils (from an architect or professional engineer), roof (including structural members, decking and shingles, fire history), plumbing (including well, sewer lines, septic system), heating/cooling systems (including duct system), electrical systems, built-in appliances, security system, pool/spa, appraiser valuations, surveyor information, flood and hazard insurance availability and costs, and a HUD approved infestation (termite) report. All such inspections should be conducted by a qualified and experienced expert of Buyer's choosing and each potential Buyer is advised to accompany the inspector(s) during the inspection(s). Potential Buyers should not rely on Seller, Auctions U.S.A., a friend, or him/herself to make these or any other inspections. The costs of all inspections, including all liability attendants thereto, are the potential Buyer's sole responsibility. To locate experienced and qualified inspectors, potential Buyers should consult the Yellow Pages of the Telephone book under the various headings listed herein, and verify appropriate licenses and all references given.
If Buyer asks and is given recommendations, by Auctions U.S.A. or any other person, Buyer should be sure to receive the names of at least three inspectors for each such inspection to select from. These may be provided by an attorney, lender, or other informed sources. If a potential Buyer has any objection to the Property based on any defects or information disclosed or learned about the Property per the recommended inspections herein, he/she should not bid. INFORMATION AS MIGHT OTHERWISE BE PROVIDED IS FROM SOURCES DEEMED RELIABLE, BUT NO WARRANTY OR REPRESENTATION IS MADE AS TO ITS ACCURACY. AUCTIONS U.S.A. AND THE SELLERS EXPRESSLY DISCLAIM ANY LIABILITY FOR ERRORS, OMISSIONS OR CHANGES REGARDING ANY INFORMATION PROVIDED. POTENTIAL PURCHASERS ARE STRONGLY URGED TO RELY SOLELY UPON THEIR OWN INSPECTIONS AND OPINIONS IN PREPARING TO PURCHASE ANY PROPERTY AND ARE EXPRESSLY ADVISED NOT TO RELY ON ANY REPRESENTATION MADE BY THE SELLERS OR THEIR AGENTS. PROPERTIES MAY BE ADDED OR DELETED AT THE SOLE DISCRETION OF AUCTIONS U.S.A.. ALL PROPERTIES ARE SOLD "SUBJECT TO SELLER'S CONFIRMATION, UNLESS OTHERWISE INDICATED.
Section 10: Flood & Hazard Insurance
Most areas have, on occasion, experienced heavy rainstorms. There are areas where property has been damaged from overflow creeks, streams, rivers, and from run off water in areas where storm water drainage facilities were incapable of handling run off water fast enough to prevent flooding. Every potential Buyer should satisfy him/herself with the flood and water history and water risk attendant to the Property being sold prior to the auction. For more information on the nature of the water condition as it relates to the Property being sold, potential Buyers should contact: (1) The U.S. Corp of Engineers, (2) City or County Engineers Office (in the city or county where the Property is located), (3) The Seller's Disclosure Declaration to determine how long he or she has owned the Property and if there have been any water problems, (4) Neighbors who have lived adjacent to the Property for some time to determine if they have noticed any water problems. Buyers may also need to obtain Federal flood insurance, if required by a lender. Buyers should be aware that flood insurance may also be purchased on personal property (carpets, drapes, furniture, etc.) and should seek advice from an insurance agent. Potential buyers may have the Property inspected by an insurance agent, such as Allstate or Nationwide Homeowners Insurance; research insurance claims histories via services like Comprehensive Loss Underwriting Exchange and obtain a commitment for hazard as well as flood insurance covering the Property prior to bidding. All explanations, representations, and disclosures concerning the terms, conditions and provisions of a commitment for insurance coverage and/or an insurance policy are the responsibility of the Buyer's insurance agent and not of the Seller or Auctions U.S.A.
Section 11: Environmental Hazards
A potential buyer should investigate fully any possible environmental hazards, including asbestos, lead based paint, radon gas, mold or any other toxic materials, prior to attending the auction. For further information Buyer should contact the City, County and State Health Departments where the Property is located, as well as the offices of the federal Environmental Protection Agency. Please carefully review prior to inspecting or purchasing any property the 'Homebuyer's Guide to Common Environmental Hazards,' the EPA's information on Indoor Air Quality and the Department of Health and Human Services information on Disease Control.
Section 12: Lot Lines, Easements and Dimensions
If a potential Buyer has any questions or material needs regarding exactly where lot lines, tract boundaries, or any easements are located, as well as the dimensions of land and/or buildings, Buyer may choose to have a staked survey made by a licensed surveyor prior to bidding at Buyer's expense. Buyer may request that the survey show the location of utility easements and driveways, proximity of buildings to lot lines, and the dimensions of improvements. Any survey or plat provided by the Seller or Auctions U.S.A. may include fees to be charged to the Buyer, but is provided for general information purposes only and is not warranted as accurate or in any other way meeting Buyer's material needs.
Section 13: Agency Relationships
A Seller who lists property for sale with a (Broker) establishes an agency relationship with that Broker, who as the Listing Broker, together with the Broker's agents are the "Seller's Agent". As the Seller's Agent, all licensed agents of Broker, act solely on behalf of the Seller. Seller's Agents do not represent the Buyer. This relationship is disclosed on an Agency Disclosure form and enclosed in the property information packet. The Seller may be legally responsible for the actions and words of the Seller's Agent. A Seller's Agent must disclose to the Seller information provided to him or her by the Buyer, including Buyer's income, motivation, and maximum price the Buyer can or will pay in order to negotiate the best price, terms, and least costs for the Seller. The Code of Ethics of the National Association of REALTORS requires that all REALTORS and REALTOR-ASSOCIATES act honestly and are responsible for disclosing pertinent facts relating to the property, which have been disclosed by the Seller, or are otherwise known by the agent. Auctions U.S.A. acts exclusively as an Auctioneering company in conducting all of our real estate auctions. We are not a Seller's or Buyer's Agent and/or Broker. "Buyer's Agent" - A real estate broker can agree to act as an agent for the Buyer (Buyer's Agent) only if the Buyer consents to that representation in writing. The agreement between the Buyer and broker (Buyer's Agent) serves as a contract between them, establishing an agency (fiduciary) relationship with the broker, and should specify the broker's duties and how the broker will be paid. The Buyer's Agent acts solely on behalf of the Buyer. Buyer's Agents do not represent the Seller. The Buyer may be legally responsible for the words and actions of the Buyer's Agent (and his or her sales associates). A Buyer's Agent must disclose to the Buyer information provided to him or her by the Seller, or the Seller's agents, including Seller's motivation, previous results of negotiation with other Buyers, and minimum price the Seller will take to negotiate the best price, terms, and least costs for the Buyer. The above duties of the agent in a real estate transaction do not relieve a Seller or a Buyer from the responsibility to protect their own interests. Buyers and Sellers should carefully read all agreements to assure that they adequately express their understanding of the transaction. A real estate agent is a person qualified to advise about real estate in general only. If tax, legal, or other more specific advice is desired, Buyers and Sellers should consult a competent professional. AUCTION U.S.A. AS THE AUCTIONEERING COMPANY IS A FIDUCIARY AGENT OF THE SELLERS ONLY AND EXPRESSLY DECLINES ANY OFFERS OF AGENCY AND SUB-AGENCY.
Section 14: Equal Opportunity
Auction U.S.A. staff and affiliates are members of many legal, auction and real estate organizations, including the National Auctioneers Association and National Association of Realtors, all of which espouse a firm's commitment to providing professional services to any person, regardless of race, color, religion, sex, handicap, familial status, or national origin. Our firm shall not be a party to any plan or agreement to discriminate against a person or persons on the basis of these or any similar prejudices.
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I/We have read, in its entirety, all of the information provided herein. Furthermore, I/We accept and agree to adhere to all of the Terms of Auction Sale. I have had ample time to review this disclosure and have been given every opportunity to fully consider the Risks of buying real estate at auction. I clearly understand that all of the properties are sold "AS IS, WHERE IS, AND WITH ALL ITS FAULTS AND CONDITIONS, NO WARRANTIES EITHER EXPRESS OR IMPLIED, NO SALES CONTINGENCIES". I read and speak English or I had this disclosure interpreted on my own.
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Buyers' Signature (1) Date Sellers' Signature (1) Date
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Print Buyers' Name (1) Print Seller' Name (1)
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Buyers' Signature (2) Date Sellers' Signature (2) Date
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Print Buyers' Name (2) Print Seller' Name (2)
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