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AGENT/BROKER REGISTRATION|
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Bulk Sales Auction FAQs
| Pre-Auction |
| Q. What types of properties will be sold at this auction? |
| Ans. Our Bulk Sales Real Estate auctions feature many types of residential properties including multifamily, single family, townhomes, condominiums and vacant land. |
| Q. Who owns the bulk package of properties that are being offered in the bulk sale? |
| Ans.The owners can include banks, lenders, investment groups, hedge funds, other financial institutions and even individual investors or corporations. |
| Q. How were the values determined? How current are they? |
| Ans. If available, the previously valued to price is based on the higher of: A) the appraised value of the properties in connection with the most recent mortgage on the properties, if applicable, B) the most recent asking price, C) the assessed value, or D) the most recent broker price opinion.. |
| Q. Should I inspect the properties prior to bidding? |
| Ans. Yes. We highly recommend all potential bidders conduct all property evaluations and inspections. In addition, it is important to inspect and review any property information and disclosure documents pertaining to those properties. If complete due diligence is performed in advance, buying real estate at auction should be a streamlined process. By registering and bidding in the auction, you are representing that you have inspected, reviewed and accepted all relevant property information you deem necessary to make an informed decision. The properties will not be open for inspection, unless otherwise allowed by Seller, so it is important to be diligent, and perform all investigations prior to the online auction. |
| Q. Are there any documents I can review prior to bidding? |
| Ans.Any and all documents, disclosures and property descriptions are available online in the secured data vault. In order to access these sensitive documents, please click on the data vault tab located next to the bulk sale listing and register. You will be required to electronically acknowledge and agree to the terms of a Confidentiality Agreement in order to review and obtain any information provided in the data vault. Information provided in the data vault is provided by the Seller. |
| Q. Do I need to register to bid for the bulk sale auction? |
| Ans.Yes, we recommend that you register as far in advance of the start of the online auction as possible in order to receive information relating to the event and to ensure confirmation to bid. The registration is EASY and there is no obligation to the registered bidder to bid. NOTE - You must register separately for each bulk sale auction event listed in the auction calendar. To register for the online auction, go to www.auction.com and click on the Online Bidding tab. |
| Online Auction Process |
| Q. What do I need to provide if I am bidding in one of your online bulk sale auctions? |
| Ans.To register and to be qualified to bid online for any bulk package, bidders are required to have a credit card authorization in the amount of $1,000 held on their credit card. Once an authorization has been confirmed, you will be contacted to verify sufficient funds and then authorized to bid. If you become the Winning Bidder, your credit card hold will be releases as soon as verification has been received that you have made your required earnest money deposit. If you are not the Winning Bidder, your credit card authorization will be released as soon as reasonably possible following the conclusion of the online auction. |
| Q. Will I be required to demonstrate proof of funds to bid? |
| Ans.Yes. To complete the registration process, all private investors (non-institutional investors) will need to provide the Auctioneer proof of available funds. Please be prepared to provide a recent bank or brokerage account statement which demonstrates that you have funds available (e.g. cash, stock, bonds, mutual funds) to purchase the subject asset. The statement must be less than 75 days old. |
| Q. What if I have a real estate agent or broker? |
| Ans. Brokers representing Winning Bidders will be compensated by their clients as per the representation agreement entered into by the broker and client. |
| Q. What is the Buyers Premium? |
| Ans.A Buyer's Premium equal to 5% of the Winning Bid Amount will be added to Winning Bid Amount to establish the Total Purchase Price. |
| Q. If I am the winning bidder, can I assign my contract to someone else? |
| Ans.No. The purchase and sale agreements are not assignable. All parties who wish to buy must register for the auction and execute the necessary documents if they win. |
| Q. What if I change my mind? Can I cancel the transaction after the fact? |
| Ans. No. Once the online auction is final, you have agreed to purchase the bulk package. That is it why it is important for you to conduct all of your due diligence and inspections prior to bidding online for the bulk sale package. Please review the Auction Terms and Conditions for further information. |
| Q. Do you publish auction results? |
| Ans. No. Once escrow closes, you may obtain the information from the County Recorder's Office. |
| Q. What are the benefits of an auction? |
| Ans. The benefits of the auction process are numerous. Achieving a price through competitive bidding is many times the only method to determine a properties true market value. The auction provides a marketplace where sellers and buyers can meet. The buyer is exposed to multiple offerings simultaneously enabling market comparisons quickly and easily. Additionally, the buyer is able to set their own price and bid to their own set limits based the research and due diligence they complete. With committed sellers, lack of contingencies and no back and forth negotiation periods the auction provides a venue for an efficient transaction. |
| Q. How is the property transferred to the bidder? |
Ans. A Special Warranty or Quit Claim Deed will be used to convey ownership in the properties – the specific type of deed will be set forth on each details page for each property. In addition, please see the purchase and sale agreement for each bulk sale auction for further details. Closing costs are primarily governed by the state in which the properties are located, however please review the purchase and sale agreement for specific details. The closing period is reflected is in the purchase and sale agreement and is generally no longer than 5 to 10 business days following the conclusion of the auction. There are no finance contingencies to closing. All bulk sale purchasers should be prepared with all sufficient funds necessary to close immediately following the close of bidding. |
| Title |
| Q. If I bid on a bulk package, are there any liens on the properties? |
| Ans. The properties are sold as-is. Certain title conditions could apply. Please conduct your due diligence prior to bidding. |
| Q. If I bid on a lender foreclosed bulk package, is there a redemption period where a former owner can make good on their debt? |
| Ans. No, the foreclosure process has been concluded and finalized on all properties in every package |
| Q. Can I choose my own Title Company? |
| Ans. No, the Seller chooses the Title Company (if required) to maintain the efficiency of the auction process. Closing costs are standard and customary for the county in which the properties are located |
| Q. When will I receive title to any property I may purchase? |
| Ans. The closings are expected to occur within 5 to 10 business days of the auction event. At closing, and upon payment of the purchase price and closing costs, you will receive title vested as you designated to the closing agent. |
| Finance |
| Q. How do I get financed if I'm the winning bidder? |
Ans. Auction.com does not offer financing through preferred lenders for any bulk sale. Be prepared to close with all cash once the bidding has concluded. There are no finance contingencies on any bulk sale auction. |
| Q. What are the closing costs? |
| Ans. . Please review the purchase and sale agreement for specifics on closings costs and who the responsible party will be, but generally, the standard and customary charges for the county in which the property is located in apply, which may include escrow fees, recording fees, normal pro-rations, title insurance premiums and fees, if applicable, loan fees, document processing fees and document transfer taxes. |
| Registration Process |
| Q. Can I use credit card for the deposit? |
Ans. Yes. |
| Q. Can I bid if I am not a US citizen? |
| Ans. Yes, anyone can bid! The registration and bidding process are the same for all bidders. |
| Q. I registered for the website, but why can't I bid? |
| Ans. You may have created your profile at www.Auction.com, but did not register to participate in an auction event. Please go to the "Online Bidding" tab, click on the bulk auction for which you'd like to participate and then click on the "Register Now" button. If you have registered for the auction, you may still need to submit a deposit and have your proof of funds verified. |
| Q. I registered, but it didn't ask for an initial deposit, how to I put in my initial deposit? |
| Ans. Make sure you are registering for the online only auction event - Please go to the "Online Bidding" tab, click on the auction for which you'd like to participate and then click on the "Register Now" button. |
| Q. I forgot my password, how do I get back in? |
| Ans. On the sign-in page, click on "Forgot Your Password?" and fill in the answer to your security question. Your password will be automatically emailed to your user email address. |
| Q. Can I put my purchase in my corporate name? |
| Ans. Yes, you can put it in the name of a corporation, limited liability company, trust or partnership. To do so, you must fax in your entity formation documents to the number identified on the website prior to bidding on the property. |
| Q. What documents are required for Corporations? |
| Ans. Articles of Incorporation (or similar state formation documents) and a resolution authorizing the corporation and party signing the purchase and sale agreement to act on behalf of corporation in this transaction. |
| Q. What is required for Limited Liability Companies (LLC)? |
| Ans. Articles of Organization (or similar state formation documents) and a resolution authorizing the LLC and party signing the purchase and sale agreement to act on behalf of LLC in this transaction. |
| Q. What do I need to put it in a Trust? |
| Ans. Declaration of Trust and evidence that party signing the purchase and sale agreement is the trustee of the trust. |
| Q. What is required for a Partnership? |
| Ans. Partnership Agreement and evidence of authority of party signing the purchase and sale agreement. |
| Bidding Process |
| Q. Can I bid on more than one bulk package? |
| Ans. Yes. You determine your bidding limits, and as long as you have enough funds you can bid on more than one package. |
| Q. What if I want to bid on back to back packages? |
| Ans. You may bid on as many as you like. |
| Q. Can I set a max bid once the auction has started or set a proxy bid? |
| Ans. Some events may include a proxy bid period, where you are able to set a bid amount and we will bid up to that amount for you automatically. On events that do not include this feature, you must make bids yourself. |
| Q. When does the bulk package auction end? |
| Ans. The bulk sale packages close at the posted end time. Bidders will submit an aggregate bid on all properties in the bulk package |
| Q. What does the term "reserve" mean? |
| Ans. A "reserve" is an amount established by the seller which represents their minimum selling price. Reserve prices are not published and the starting bids do not represent the reserves. |
| Winning Bidder Process |
| Q. How will I know if I am the Winning Bidder? |
Ans. If you are the highest bidder when the auction ends and your bid meets or exceeds the reserve price and such bid is acceptable by the seller, then you will receive phone call from one of our auction coordinators who will discuss with you the next steps, including execution of the purchase agreement and payment of the earnest money deposit. |
| Q. I received an email stating I am the highest bidder, but no one has contacted me. What do I need to do? |
| Ans. If at the conclusion of an auction you have not received another email indicating you were outbid, you should receive a call advising you were the winning bidder for this property (assuming the reserve has been met). If you have not been contacted, please call your auction advisor.. |
| Closing Process |
| Q. I haven't received my purchase and sale agreement, what do I do? |
| Ans. If you have not received your purchase and sale agreement (and related documents) within 24 hours of the conclusion of the auction, please contact your auction advisor.. |
| Q. Can I add another name on the purchase and sale agreement after the auction? |
| Ans. All parties on the purchase and sale agreement must be added at the time the agreements are being drawn up. We cannot add co-buyers after the documents are sent out. The entire contract delivery and signature process will be handled electronically unless otherwise indicated. |
| Q. What are the terms of my bulk sale closing? |
| Ans. . All bulk sale closings will be governed by the specific terms and conditions of each Seller as set forth in the purchase and sale agreement. Again, there are no financing contingencies on any bulk sale purchase. Please have all funds necessary to close immediately upon the conclusion of bidding in the sale. All monies held in escrow will be applied toward the total purchase price. Remaining funds will be required to complete the transaction. |
| We'll see you at the Auction!! |
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