Terms and Conditions of Bidding and Purchase for NY Real Estate at Online Auction
Thank you for participating in today’s auction. The auction will be conducted by Absolute Auctions & Realty, Inc. (AARauctions.com or AARbids.com) on behalf of the owner of the real estate (the Seller). The real estate offered for sale at auction (the real estate) is fully described in the Contract for Purchase and Sale, a copy of which is available for inspection within the Internet Bidding Packet.
1. Registration. All bidders are required to register prior to the auction at www.aarbids.com, complete an ‘internet bidding packet’, tender a deposit of $5,000 in cash, wire transfer or guaranteed funds made payable to – Absolute Auctions & Realty, Inc. And deliver/mail to Absolute Auction Center, 45 South Ave., P.O. Box 1739, Pleasant Valley, NY. In the event of a successful bid, bidder approves applying said funds toward the 10% buyer’s premium downpayment. Auctioneer reserves the right to decline registration if forms are not completed.
2. Bid documents. Upon fall of the gavel, conclusion of the auction, the high bidder and back-up bidder, shall be provided electronically a completed Purchase and Sale Agreement (sample provided on the AARauctions.com webpage) reflecting their respective bids, and including the 10% buyer’s premium. The high bidder and backup bidder agree to sign their Purchase & Sale Agreements (unaltered by successful bidder and back-up bidder) and adhere to the closing date therein. Failure to execute these documents and return to Absolute Auction & Realty, Inc office located at 45 South Ave. Pleasant Valley NY 12569 on the following business day by 4pm E.S.T. shall be deemed a default by the bidder(s).
3. Buyer’s premium. 10% buyer’s premium shall be added to the top bid to become part of the purchase price. Buyer’s premium definition: the buyer’s premium is that portion of the commission(s) which is/are being paid by the buyer. It is clearly understood and agreed by both buyer and seller that the auctioneer and broker represent the seller only. The full buyer’s premium is due no later than 4:00 pm on the next business day following the auction, the successful bidder shall deliver, by wire transfer, or guaranteed funds acceptable to auctioneer/broker, the balance of the ten percent (10%) of the bid price. Said downpayment funds shall be payable to Absolute Auctions & Realty and deposited in an account designated by Absolute Auctions & Realty, for preservation of said funds. Failure to fund said downpayment shall constitute immediate default by the high bidder.
4. Default: High bidder agrees that failure to acknowledge the Purchase and Sale Agreement as outlined in #2 above, and, or, failure to fund the balance of the ten percent buyer premium downpayment as outlined in #3 above shall constitute default. In the event of default, bidder’s deposit of $5,000 shall be forfeited. Seller shall retain all other remedies available by law.
5. Back up bidder: The back-up bidder agrees that his/her bid shall be kept open until such time as the buyer’s premium has been provided to auctioneer/broker by the high bidder. In the event the high bidder fails to provide the buyer’s premium, the backup bidder shall become the high bidder and shall be obliged to provide the funds set forth herein, by four pm the following business day, upon notification by any means that he or she is now the successful bidder.
6. Closing documents. Seller shall provide a legally recordable deed. Prior to auction, seller has represented to auctioneer/broker that title conveyed shall be insurable and free and clear of liens or adverse encumbrances.
7. Representations and warranties. Broker makes no representations or warranties with respect to the subject property, as same address zoning, site plan approval or other federal, state or local laws. Any maps, plats, surveys, site plans, subdivision maps or the like have been supplied by seller and auctioneer/broker make no representation, warranties or guarantees with respect to locations, dimensions, track sizes, suitability for use, or subsurface conditions.
8. Representation. By execution of this agreement the bidder acknowledges the auctioneer/broker represent the seller, only, and the commission paid in respect to this sale is identified as a buyer’s premium as set forth in paragraph four above. This is a portion of commission paid by the buyer.
9. Determination of disputes. In the case of disputed bids, the auctioneer/broker shall exercise his or her best discretion in determining the resolution of claims, and such decision is final. Such decision shall not be the subject of any post-auction claims. Auctioneer/broker reserves the right to bid on behalf of buyers and/or sellers. No transfer shall be recognized from one buyer to another. In the event a dispute should arise after the auction, the auctioneer/broker’s records shall be conclusive. Bidder agrees that litigation shall be conducted in Dutchess County, NY.
10. Privacy of auction. The auction is a privately conducted event, not open to the public and as such, auctioneer/broker reserves the right to refuse admittance to any person.
11. Indemnity provisions. By execution of this agreement, bidder agrees to bear responsibility for any charges, claims or expenses incurred by reason of any violation, breach or default in respect to these terms and conditions, including, reasonable attorney’s fees, court costs, the cost of re-sale, and remarketing costs. The foregoing remedies are not exclusive.
12. General provisions. All bids tendered for auction are subject to the approval of the seller, unless stated otherwise. The provisions herein made cannot be altered except in writing, and any provision of this agreement shall be interpreted in accord with New York Law. This agreement shall not be interpreted or construed in a manner which creates a negative inference based upon the fact that the broker prepared the agreement. Facsimile signatures shall be considered binding. In such event any provision herein is deemed illegal, void or unenforceable by a court of law, it shall not impact the body or balance of the agreement.
13. Interpretation. Interpretation of this agreement shall be consistent with the purchase and sale agreement, it being the stated intent that this document and the purchase and sale agreement are to be read as integrated documents conferring the same rights and obligations.
14. Forfeiture Upon Default. In such event buyer fails to abide the terms and conditions set forth herein or fails to abide the obligations arising from the purchase and sale contract executed in conjunction with this sale, buyer acknowledges he or she shall forfeit all monies deposited. By execution of this agreement, bidder acknowledges this is a negotiated result, and the forfeiture of said sums of money do not constitute a penalty.