Auction Rules & Disclosures


Disclosure, Acknowledgement and Consent to Offer Process

 

The undersigned bidder acknowledges that he/she is engaging in an open offer bidding process and accepts all of the following conditions:
 
Bidding will start at the listing price on the MLS.
 
  • The Seller has the right to refuse any offers if the reserve price is not met.
     
  • The reserve price is confidential and will not be disclosed, except to the high bidder if the reserve is not met.
     
  • Sellers are not under obligation to sell unless a confidential reserve price is met.
     
  • If the sales price yields a "Short Sale," the final purchase price is subject to lender approval.
 
Conduct of the Auction:
 
  • Increments of bidding are typically $5,000 to $10,000 (US dollars), but are at the sole discretion of Statewide Real Estate Auctions.
  • Closing to be within 30 days after acceptance of the highest bid.
     
  • Buyers and Sellers understand that all bids include a 7% Buyer's premium. Please note the premium is included in the final bid, not added on top. Your final bid will be the final purchase price.
     
  • Seller to provide a grant deed giving marketable fee simple title, subject to restriction of record.
     
  • Property is sold subject to zoning, easements, restrictions, and any other matters of record.
     
  • Taxes are prorated.
     
  • Statewide conducts many types of auctions and the  “Disclosure, Acknowledgement and Consent to Offer Process” addendum can vary from auction to auction. For instance, in the event of a short sale, all commissions are paid by the lender. Or in the event there are no Termite and Home Inspection Reports, then the Buyers will have a 10-day Buyer investigation period and appraisal contingency as well as a 14-day loan contingency. Some auctions may occur at the property, others may occur at our offices, and still others may be conducted by telephone, fax or email over a period of 7-10 days.
     
  • An addendum that is specific to the property you wish to bid on will be available to qualified bidders on Auction Day. You will have 72 hours (3 days) to review it and cancel for any reason if you wish to do so, and get a full refund of your deposit.

    Please contact us to get the “Disclosure, Acknowledgement and Consent to Offer Process” addendum that is specific to the property you wish to bid on. 

BROKER PARTICIPATION:
Brokers may represent the buyers and will receive a 2.5% commission. Agents are only entitled to a commission of 1% for self-representation and will only get the full 2.5% representation fee for representing someone else. In the event that the final sales price falls short of what is owed, the sale will be subject to lender approval as will the amount of commissions paid. If this occurs, a Short Sale addendum will be added to the contract from the Buyer and if the Seller agrees to accept a short sale offer, they will re-sign a new short sale listing agreement.
 
Statewide Real Estate Auctions reserves the right to deny any person admittance for non-compliance with Auction rules. Agents must either be present at the auction or be there by speakerphone with the auctioneer and identify themselves as representing a specific client, or they are not entitled to a commission. Buyers who show up without an agent and win the auction will be represented by an Agent from Statewide Real Estate Auctions or its co-brokering office for that auction. Statewide reserves the right to deny entry to agents and brokers that are not bidding at the auction.

Buyers must provide proof of pre-approval from a lender. A deposit equaling 3% of the final purchase price must be delivered within 24 hours of acceptance to your selected title company or to our preferred company, Chicago Title of Walnut Creek. 

If the auction you are attending has a full disclosures package, including at the minimum a termite and home inspection, there will still be a 72-hour (3-day) time period to review all inspections. All our auctions are "As- Is" sales. However, Buyers are free to cancel this agreement and receive their deposit back after reviewing the disclosure package.   
 
Buyers are free to use their own lender…BUT, if you choose to utilize a third-party lender (a lender other than those designated by the auctioneer), failure to secure funding within the specified escrow time-frame will result in the loss of your required 3% deposit. We encourage utilizing an Auction-Designated Lender due to their experience as large, national lending companies who who specialize in helping everyone…from the first-time buyer, to the sophisticated investor. If they fail to close your deal, you will be able to recover your deposit. To protect yourself from loss of your deposit, it is highly recommended that you at least run a parallel track with an auction-designated lender.
 

Auction Designated Lenders
 

Partners Mortgage Inc.

Craig Casavant

(925) 362-8105

ccasavant@comcast.net

Bank of America

Adam Carr

(925) 209-1823

acarr@bankofamerica.com


AGENCY DECLARATION: Statewide Real Estate Auctions (SREA) represents the Seller. However, it is possible that SREA may represent one or more of the people offering. All offers will be based on the bidders’ determination of value and no bidder will be advised by SREA to stop or continue to offer during the bidding process. If the buyer represented by SREA is the winning bidder, both Buyer and Seller are hereby consenting to allow SREA to enter into a dual agency relationship whereby SREA will represent both Buyer and Seller.


BIDDERS’ PACKAGE: A package of information has been prepared for bidders’ review, which includes, but is not necessarily limited to, a Preliminary Title Report, Termite Inspection Report and all other disclosures and/or inspections. There are, however, also auctions where disclosures will be provided within 72 hours of an accepted offer. In these cases, Buyers will have 10 days for a buyers’ investigation contingency. All properties at our auctions are being sold in “AS-IS,” “WHERE IS” condition. Extensions to the 30-day close may be provided if the need is legitimate, the likelihood of a successful close is high, and Buyer and Seller have agreed to the extension in writing. Neither Broker nor Seller assumes liability for any inaccuracies contained in the bidders’ package and disclosure package. All property measurements are approximate. It is the Buyer’s responsibility to verify any and all information related to property measurements and zoning or other specifications before the auction. The information contained in the bidders’ package is believed to be reliable but the bidders are responsible for verifying all facts of concern with the city, county and or the title company. 
 

Statewide Real Estate Auctions, Inc.

Broker ID#: 01796304

 
 
Contact us by phone at (510)390-2910