Terms And Conditions
GREAT AMERICAN HOME AUCTIONS, LLC
TERMS AND CONDITIONS FOR AUCTIONS
The following sets forth the terms and conditions that govern the auctions (“Auctions”) conducted by Great American Home Auctions, Inc. and its affiliated companies (“GAHA” or “we”) with respect to real properties (“Property” or “Properties”) being sold by various owners (“Sellers”) that have acquired these Properties through foreclosure or other means. Individuals participating in an Auction (“Bidders”) must register for that Auction and must agree to be bound by the Terms and Conditions, as set forth herein. The Terms and Conditions are incorporated into the Purchase Agreement (as defined below) that successful Bidders (“Winning Bidders”) must execute to complete their purchase.
Each prospective Bidder must first register for an Auction in which he or she desires to participate, which may be accomplished by completing the registration form found at our website, http://www.gahomeauctions.com/ (the “GAHA Website”) or through obtaining a form by calling GAHA at 619-814-4500. Each prospective Bidder should complete and submit the registration form at least five business days before the scheduled date of the Auction in which the Bidder desires to participate. Each prospective Bidder should print proof of registration as provided on the GAHA Website and bring it to the Auction. A prospective Bidder may also register onsite at the Auction. GAHA will require Prospective Bidders to confirm their registration upon arriving at the Auction and to present adequate evidence or verification of cash or a cashier’s check payable to themselves of no less than Five Thousand Dollars ($5,000), unless otherwise specified for that specific auction, if the prospective Bidder intends to purchase only one Property. Prospective Bidders must also have cash or a cashier’s check of no less than Ten Thousand Dollars ($10,000) for each additional Property that they intend to purchase. For example, a prospective Bidder desiring to buy three Properties at an Auction must bring cash and/or a cashier’s check totaling Twenty Five Thousand Dollars ($25,000). Prospective Bidders whom GAHA has confirmed have successfully registered for the Auction will receive a registered bidder card that will be used for actual bidding at the Auction.
2. BIDDER MUST COMPLETE INSPECTION OF PROPERTY BEFORE AUCTION
GAHA intends to hold at least three open houses for each Property prior to the date of the Auction (except for occupied Properties as discussed in more detail below). GAHA may utilize the services of local real estate brokers or property management firms to assist with the open houses. To obtain the open house schedule, prospective Bidders should visit the GAHA Website. Prospective Bidders must inspect the Properties at the open houses and in any event prior to the Auction. We encourage each prospective Bidder to utilize the services of his or her real estate broker and contractor in connection with the evaluation of a Property and its condition. By attending an open house for a Property or otherwise conducting an inspection, a prospective Bidder hereby agrees (i) to defend, indemnify and hold GAHA, the Seller, and each of their affiliates, subsidiaries, agents, officers, directors and employees harmless from any claims, costs, liabilities, damages, and expenses, including attorneys’ fees, arising from or pertaining to, or alleged to arise from or pertain to, any inspections of the Property by the Buyer or anyone acting on behalf of the Buyer before the close of escrow on the Property and (ii) to repair any damage that the prospective Bidder causes and to keep the property lien free. A prospective Bidder and any of his or her representatives making such inspections on its behalf shall carry, and provide evidence thereof to the Seller or GAHA, if requested, worker’s compensation and public liability insurance with such limits as required by the Seller that protects the Seller from any damages to persons or property arising from any inspections of the prospective Bidder. Buyer is not relying upon any warranties, representations, statements or information regarding the Property or the Property, made or given by GAHA, any officer, employee or agent of GAHA, any broker or any other party, express or implied, except for those representations, if any, which are expressly set forth in the Purchase Agreement. Further, Buyer understands and acknowledges that no salesperson, broker or other person has any authority whatsoever to make any warranties, representations, or agreements, express or implied, for GAHA, except for those representations, if any, which are expressly set forth in the Purchase Agreement and BUYER’S FAILURE TO ATTEND A WALK-THROUGH OF THE PROPERTY AS SET FORTH ABOVE SHALL BE DEEMED ACCEPTANCE OF THE CONDITION OF THE PROPERTY BY BUYER.
3. BIDDER MUST REVIEW PRELIMINARY TITLE REPORT BEFORE AUCTION
We will make certain documentation regarding the Property, such as preliminary title reports and a property information package, available on the GAHA Website. Such documents should be reviewed prior to the Auction. Each prospective Bidder should also inquire about and obtain all matters of public record about a Property at the same time. While the Seller shall provide, at its sole cost and expense, a free and clear owner’s title policy customarily used for real property sales where the Property is located, review and approval, during the escrow period, of the preliminary title report and other matters of record, not of record or that might be revealed by a survey or inspection of the Property will not be a contingency or condition for the completion of the purchase of a Property after execution of the Purchase Agreement. Accordingly, each prospective Bidder that may purchase a Property should be satisfied with the contents of the preliminary title report and other matters of record before bidding on a Property.
4. BUYER’S BROKER PARTICIPATION
Prospective Bidders may utilize the services of their own real estate broker. Provided certain conditions are met, GAHA will pay a one and one half percent commission, based on the Winning Bid amount, to real estate broker assisting a Buyer. Each broker must register with GAHA in advance or at the Auction by completing the Broker/Agent Registration form provided by GAHA, which is available at the GAHA Website. Participating brokers are responsible for inspecting the Property being purchased by their client in advance of the Auction and must be present and remain with their client through the course of the Auction. Subsequent to their client becoming the Winning Bidder, the registered broker must accompany and remain with their client through the entire process of executing the Purchase Agreement and opening escrow. If the participating broker does not sign the Purchase Agreement at the Auction at the same time as their client then he or she shall not be entitled to a commission from GAHA.
In no event will a participating broker registered with GAHA for an Auction be paid a commission if he or she is acting as a principal for the purchase of a Property or on behalf of immediate family members, or is an employee, owner, trustee or beneficiary, directly or indirectly, of any entity purchasing a Property. Participating Brokers and their salespersons shall only be acting as a Buyer’s agent, not as an agent or subagent of the Seller or a dual agent, and they shall disclose this to the Buyer as required by applicable state law. Unlicensed brokers shall not be entitled to a commission.
GAHA recommends that all prospective Bidders pre-qualify for financing prior to the Auction. GAHA Website has a list of lenders who can possibly assist Buyer in obtaining financing. Please be advised that GAHA approved lenders may not provide financing for all Properties or prospective Bidders. Of course, there is no requirement that a Buyer use the services of a lender listed on the Website.
If a Buyer elects to use the services of a lender listed on the GAHA website and they have not been pre-qualified prior to the Auction, they will have to apply to such lender at the Auction prior to the execution of the Purchase Agreement. If a Buyer elects to use a lender listed on the GAHA website and does not qualify for financing, the Buyer will receive a refund of the full amount of their earnest money deposit less any costs and expenses of escrow chargeable to that party. Nothing herein shall be viewed as a commitment to provide financing to any Buyer by GAHA approved lenders.
If a Buyer elects to use a lender not listed on the GAHA Website, then the purchase transaction shall not be contingent upon the Buyer obtaining approval for such financing. Additionally, the escrow for that transaction will not be extended to enable the Buyer to complete its qualification for such financing. If such third party financing is chosen by the Buyer, then the Buyer must present (at the Auction), a written unconditional lending commitment from the third party lender for the loan amount needed to complete the purchase of the Property. The Buyer in all cases must consent to allow the Seller and Escrow to receive information and updates on the status of their loan in process.
If a Buyer intends to use cash to complete its purchase transaction, the Buyer must provide satisfactory proof to both GAHA and the Seller upon the opening of escrow of their ability to produce sufficient funds to complete the transaction through payment of cash by the close of escrow. This may be established through bank statements or copies of other financial deposits.
BUYER UNDERSTANDS AND ACKNOWLEDGES THAT GAHA IS NOT ASSUMING ANY RESPONSIBILITY FOR OBTAINING THE FOREGOING DESCRIBED LOAN OR ANY OTHER FINANCING ON BUYER’S BEHALF AND GAHA MAKES NO GUARANTEE OR REPRESENTATION, EXPRESS OR IMPLIED, THAT A LOAN WILL BE AVAILABLE TO BUYER OR THAT BUYER WILL EITHER QUALIFY FOR OBTAINING THE FOREGOING DESCRIBED LOAN OR ANY OTHER FINANCING, REGARDLESS OF WHETHER OR NOT SELLER OR ESCROW HOLDER COMMUNICATES WITH THE LENDER OR OTHERWISE ASSISTS BUYER IN OBTAINING THE LOAN. FURTHER, BUYER UNDERSTANDS AND ACKNOWLEDGES THAT GAHA IS NOT AN AGENT OR REPRESENTATIVE OF LENDER.
6. AUCTION JARGON AND PROCEDURES
Bidders should be familiar with the basic procedures and terminology of the GAHA Auction process. This begins with an understanding of the relevant terms used.
The Sellers of the Properties at an Auction have established a minimum price that they will accept for each Property. This is referred to as the Reserve Price, which is not published before the Auction and is not disclosed during the Auction. If the Reserve Price is not reached during the course of the bidding process at the Auction the Seller is not required to sell the Property to the highest bidder. The opening bid, in certain cases, may be lower than the Reserve Price.
Prior to the announcement of the completion of the sale by GAHA at the Auction, the Seller may withdraw the Property. If the highest bid for a Property is below the Reserve Price then GAHA may conditionally accept the bid on behalf of the Seller subject to the subsequent confirmation by the Seller accepting the sale of the Property for that price as described below. The Seller is not required and cannot be compelled to accept a price below the Reserve Price.
The highest of the following for the Property: (1) appraised value in connection with the most recent mortgage, (2) the most recent sales price within the past five years.
The person bidding on a Property who has been recognized by the auctioneer as the highest bid for a Property. The Winning Bidder must immediately proceed to complete the Purchase Agreement and open escrow at the Auction site
Subject to Confirmation
The auctioneer’s conditional acceptance of a bid below the Reserve Price on behalf of the Seller, which acceptance will be subject to the Seller’s actual receipt and acceptance or rejection of the bid amount. A Winning Bidder whose bid has been accepted Subject to Confirmation will still proceed through the purchase process immediately after the auction; however, the sale of the Property will not be deemed to have been accepted, and the Purchase Agreement will not be executed by the Seller, until such time as the Seller has accepted the bid. The Seller may have a representative at the Auction that is authorized to approve a bid accepted Subject to Confirmation at the time that the Buyer is proceeding to execute the Purchase Agreement for the Property. If the Seller does not accept a bid Subject to Confirmation at the Auction, the Seller will have ten business days following Auction to accept or reject the bid. If the Seller rejects the bid, the Buyer will receive a full refund of all monies it has deposited in escrow.
The Winning Bidder for a Property at an auction agrees to pay a Buyer’s Premium to GAHA equal to five percent (5%) of the Winning Bid amount. This Buyer’s Premium is added to the Winning Bid amount to determine the Total Purchase Price to be paid by the Buyer. For example, if a Buyer is a Winning Bidder with a Winning Bid amount of $100,000, the Buyer’s Premium is $5,000 (i.e., 5% of $100,000). The Total Purchase Price will then equal $105,000. Costs of sale and escrow, including pro-rations, are not included in the Total Purchase Price and must be paid by the Buyer through the close of escrow.
Bidding at the Auction
Each Bidder in an Auction must use the bidding card provided to them at the Auction. The auctioneer must first acknowledge a Bidder to entertain that Bidder’s bid on a Property. GAHA may postpone or cancel any auction of a particular Property or withdraw any Property at any time, or revise the terms of an auction or conditions of a sale prior to or during the course of an auction of a Property. The announcements by the auctioneer in an auction with respect to a Property, or a pre-approved procedure to be followed concerning the auctioning of a Property shall supersede any conflicting provisions in these Terms and Conditions. The auctioneer may reject any bids and may elect to change the timing of offering of a Property for a bid or the sequence of such offering. The auctioneer shall have sole discretion to determine any conflicts among bidders.
The Winning Bidder is acknowledged as such and must thereafter proceed to the area designated at the Auction to complete the purchase process. For an all cash transaction, a Winning Bidder must provide evidence to GAHA and the Seller that he or she is capable of closing the transaction without obtaining financing. Otherwise, the Winner Bidder will proceed to the lending area to begin the lending process. In both instances, the Winning Bidder must execute the Purchase Agreement and open escrow simultaneously. All of the necessary legal documentation will be available for review during the initial lending process on site at each Auction.
The refusal or inordinate delay of a Winning Bidder to proceed to complete the purchase process will be deemed to be a default of the Winning Bidder and will result in the Property being placed back in the Auction or held back for subsequent Auctions as determined by GAHA and the Seller. In such an event, the Winning Bidder shall have no further rights as to the Property, and will be deemed to have waived and released any rights or claims as to the Property, the Seller, GAHA and all persons and entities acting with or on behalf of them.
7. TERMS OF THE PURCHASE AGREEMENT AND TIMING OF EXECUTION
A Real Estate Purchase Agreement and Joint Escrow Instructions (the “Purchase Agreement”) must be executed by the Winning Bidder immediately after the completion of the auction of the applicable Property. The form of the Purchase Agreement is on the GAHA Website. Each prospective Bidder should review and become familiar with the Purchase Agreement before attending the Auction and bidding on a Property as it will be the document that governs the relationship of the Buyer and the Seller from the time it is executed through the closing of escrow for the Property.
Although prospective Bidders should review the Purchase Agreement in its entirety, we highlight some of the material terms of the Purchase Agreement below.
Buyer’s Representations and Warranties
The Purchase Agreement provides that the Buyer (i.e., the person who executes the Purchase Agreement) will represent and warrant that Buyer (1) has had adequate time, access and opportunity to inspect the Property prior to execution of the Purchase Agreement; (2) is not relying upon any representations, whether written or oral, by the Seller or GAHA, or any of their respective employees or agents concerning the Property; (3) is aware that the condition of the Property is not known to the Seller and the Seller has not personally inspected the Property or otherwise been made aware of facts concerning the condition of the Property; (4) has made all inspections he or she deems necessary concerning the Property or has elected to make no inspections or only a partial inspection of the Property; (5) has reviewed the preliminary title report for the Property and had an opportunity to review all matters identified in such report; (6) is satisfied with the Property and the condition of all improvements thereon including their structural integrity and insurability; (7) is aware of and has reviewed all conditions, covenants and restrictions and any homeowner association documents applicable to the Property; (8) is aware of all laws, ordinances, including zoning and building codes, and environmental conditions and restrictions applicable to the Property and its use; (9) is aware of all hazards (and any effect they may have as to the insurability or the cost of insurance for the Property) that may exist with respect to the Property, including the Property’s locations vis a vis all earthquake fault zones, flood zones and fire hazards; and (10) is acquiring the Property AS IS and accepts the Property and the improvements thereon in their present condition, and that he or she has elected to proceed with the purchase transaction regardless of whether he or she has actually inspected the Property and notwithstanding any information that the Buyer may have learned about the Property and its condition.
The Purchase Agreement will generally provide that the Seller, GAHA and all parties acting on their behalf shall not be liable to the Buyer, or any other person or entity claiming rights on behalf of or based on its relationship with the Buyer, for any losses, damages, expenses, injuries or claims of any kind or character, including attorneys’ fees, arising from, caused by or relating to, or alleged to arise from, be caused by or relate to, the Property or information related to the foregoing that have been set forth, omitted or inaccurately stated by or on behalf of the Seller or GAHA, or on any online website display or marketing materials for the Property, including without limitation in the Property information package, the information on the GAHA Website, or on any multiple listing service brochures, materials or information notwithstanding the fault, including without limitation active or passive negligence, of the Seller, GAHA or any other party acting on their behalf
No Further Inspection of the Property
Each prospective Bidder must complete their inspection of an unoccupied Property before the date of the Auction for the Property. The Purchase Agreement will provide that inspections of a Property by the Buyer after the Auction and during period of the escrow for the purchase are not be permitted except in the limited cases where a Property was occupied at the time of the Auction and, in that case, only in accordance with the procedures set forth in the Purchase Agreement.
Acceptance of the Property As Is, No Seller Knowledge About Property
The Purchase Agreement will include terms setting forth specifically that the Buyer will purchase the Property “AS IS” and is not relying on any information provided by the Seller or GAHA. The language included in the Purchase Agreement will be substantially as follows:
BUYER’S ACCEPTANCE OF PROPERTY AS IS REGARDLESS OF CONDITION.
THE BUYER AGREES THAT IT IS PURCHASING THE PROPERTY AS IS WITH ALL FAULTS REGARDLESS OF ANY MATTERS IT HAS DISCOVERED OR FAILED TO DISCOVER FROM ANY INSPECTION IT MAY HAVE MADE OF THE PROPERTY OR THAT HAVE BEEN DISCLOSED OR NOT DISCLOSED TO THE BUYER FROM ANY SOURCE. THE BUYER ACCEPTS THE PROPERTY AND ALL STRUCTURES AND IMPROVEMENTS THEREON AS IS REGARDLESS OF THEIR CONDITION OR ANY LATENT OR PATENT DEFECTS THAT MAY EXIST OR SUBSEQUENTLY ARISE, OCCUR OR BE DISCOVERED WITH RESPECT TO THE PROPERTY, STRUCTURES OR IMPROVEMENTS. THE BUYER ACCEPTS THE PROPERTY WITH ANY ENVIRONMENTAL DEFECTS OR HAZARDS OR CONDITIONS THAT MAY EXIST, ARISE OR BE DISCOVERED WITH RESPECT TO THE PROPERTY OR THE REGION OR VICINITY WHERE THE PROPERTY IS LOCATED.
NO SELLER KNOWLEDGE ABOUT PROPERTY.
IT IS ACKNOWLEDGED BY THE BUYER THAT THE PROPERTY HAS BEEN ACQUIRED BY THE SELLER THROUGH FORECLOSURE, DEED-IN-LIEU OR SIMILAR PROCESS. THE SELLER, ITS EMPLOYEES, AGENTS, BROKERS AND THE COMPANY THAT PROVIDED THE AUCTION SERVICES THROUGH WHICH THE PROPERTY WAS BID UPON HAVE NO ACTUAL KNOWLEDGE OF THE CONDITION OF THE PROPERTY AND HAVE NOT INSPECTED IT.
NO SELLER REPRESENTATIONS ABOUT PROPERTY; FURTHER ACCEPTANCE OF CONDITION OF PROPERTY.
THE SELLER, ITS EMPLOYEES AND AGENTS HAVE MADE NO REPRESENTATIONS OR WARRANTIES, ORAL OR WRITTEN CONCERNING THE PROPERTY, ANY STRUCTURES OR IMPROVEMENTS THEREON, AND THE BUYER ACCEPTS THE CONDITION THEREOF IN ALL RESPECTS, INCLUDING, BUT NOT LIMITED TO: THE CONDITION OF THE PROPERTY, THE CONDITION OF ANY STRUCTURES OR IMPROVEMENTS THEREON, OR THEIR SPECIFICATIONS SUCH AS SQUARE FOOTAGE, THEIR STATE OF REPAIR, THE MATERIALS USED IN THEIR CONSTRUCTION, THE CONFORMITY OF THE PROPERTY OR ANY STRUCTURES OR IMPROVEMENTS THEREON TO ANY PLANS OR SPECIFICATIONS OR CODE REQUIREMENTS, THEIR HABITABILITY, COMPLIANCE WITH ZONING LAWS, BUILDING CODES, HEALTH CODES, OR SAFETY CODES, AND THEIR COMPLIANCE WITH ANY AND ALL ENVIRONMENTAL POLLUTION OR PROTECTION LAWS AND REGULATIONS, ALL HAZARDOUS WASTE DISPOSAL LAWS, THE AMERICANS WITH DISABILITIES ACT, OR OTHER APPLICABLE LAWS, THEIR PRIOR USES OR POTENTIAL USES, THEIR FITNESS FOR A PARTICULAR PURPOSE OR THEIR OCCUPANCY STATUS OR ANY CLAIMS RELATED THERETO, THE VALUE OF THE PROPERTY, ANY INCOME THAT MAY BE EARNED FROM THE PROPERTY, EXISTING OR FUTURE VIEWS FROM THE PROPERTY, POTENTIAL IMPROVEMENTS TO THE PROPERTY OR EXPECTED PLANNED CHANGES IN THE SURROUNDING AREA, THE STATUS OR NATURE OF ANY PUBLIC UTILITIES OR SERVICES SERVING OR AVAILABLE TO THE PROPERTY, OR THE TYPE OF SEWAGE AND WATER SYSTEMS FOR THE PROPERTY, DRAINAGE, SOIL CONDITIONS OR STABILITY OR LANDSLIDE RISKS OR HISTORY THEREOF, ANY RISKS OR RESPONSIBILITIES REGARDING FLOODS OR ANY FLOOD HAZARD ZONE IN WHICH THE PROPERTY IS LOCATED, SEISMIC CONDITIONS OR SEISMIC RISKS OR PRIOR SEISMIC EVENTS PERTAINING TO THE PROPERTY, FIRE HAZARDS OR PRIOR FIRE EVENTS (ALL OF THE FOREGOING REFERRED TO HEREINAFTER AS PROPERTY CONDITIONS); AND, THE BUYER ASSUMES THE RISK OF ALL OF THE FOREGOING PROPERTY CONDITIONS.
Release of Seller as to Condition of the Property
The Buyer will also be executing a release in the Purchase Agreement of the Seller and all parties acting on its behalf regarding the condition of the Property and all information provided with respect to the Property. This release will cover any losses, damages, expenses, injuries or claims of any kind or character, including attorneys’ fees, arising from, caused by or relating to, or alleged to arise from, be caused by or relate to, the Property or information related to the foregoing that have been set forth, omitted or inaccurately stated by or on behalf of the Seller or GAHA, or on any online website display or marketing materials for the Property, including without limitation the information on the GAHA Website, or on any multiple listing service brochures, materials or information notwithstanding the fault, including without limitation active or passive negligence, of any Seller, GAHA or any other party acting on their behalf.
Inspection of Property That Is Occupied
There is no right of inspection for multi-family Properties that are occupied as of the opening of Escrow or that have units that become vacant during the escrow period. However, if a single family residential Property is occupied upon a Buyer’s execution of the Purchase Agreement, then upon termination of the occupancy prior to the date for the close of escrow, the Buyer shall have seven calendar days to inspect the Property after receipt of a Notification of Vacancy from the Seller or GAHA of such termination of occupancy. In such case, the close of escrow shall be extended for an additional 14 days from the Seller’s delivery of the Notice of Vacancy. If the Buyer elects to terminate the purchase within the seven calendar days from its receipt of the Notice of Vacancy it shall give written notice thereof to escrow with a copy to Great American Home Auctions, Inc., 225 Broadway, 18th Floor, San Diego, CA 92101: Attn: Closing Manager. If the Buyer cancel by giving timely notice after delivery of the Notice of Vacancy, he or she shall be entitled to a return of all funds it has deposited, net of costs incurred by escrow that are chargeable to the Buyer. Alternatively, the Buyer shall be deemed to have elected to close escrow even though the Property is occupied unless the Buyer gives timely notice of its election to cancel.
If the Property is still occupied up to the date established for the Close of Escrow and a Notice of Vacancy has not been sent, the Buyer may elect to close Escrow on the Close of Escrow date.
Buyer’s Failure to Close; Liquidated Damages
In the event that the Buyer fails to close escrow as required under the terms the Purchase Agreement then her or she will be required to pay the Seller liquidated damages, which shall equal three percent (3%) of the Total Purchase Price for the Property or the maximum amount allowed by law, whichever is less. These liquidated damages will be deducted from the Buyer’s earnest money deposit and the Buyer will receive a return of any remaining funds less escrow fees, costs, and expenses chargeable to the Buyer. The parties will be deemed to be mutually released from any further obligations regarding the completion of the purchase transaction.
8. EXECUTION OF PURCHASE AGREEMENT AND OPENING ESCROW
The Winning Bidder will be required to execute a Purchase Agreement promptly following the auction of the particular Property. The Winning Bidder will have an opportunity to discuss the Purchase Agreement with a GAHA agent and with a representative of the Seller if present at that time. A representative of the Seller, if present, or GAHA will execute the Purchase Agreement at the same time as the Buyer, although the Seller has ten (10) business days to review and execute the Purchase Agreement if it desires to consider a Winning Bid that was Subject to Confirmation. The Purchase Agreement also includes a set of escrow instructions for completion of the transaction. The Purchase Agreement shall govern the relationship of the Buyer and the Seller from the point of its execution by the Buyer and the Seller through the close of escrow for transaction. If the Terms and Conditions as set forth herein conflict with the provisions of the Purchase Agreement, the Purchase Agreement provisions shall prevail. PLEASE BE ADVISED BY YOUR EXECUTION OF THE PURCHASE AGREEMENT BUYER AGREES THAT GAHA DOES NOT REPRESENT EITHER BUYER IN ANY LEGAL CAPACITY WHATSOEVER. BUYER ACKNOWLEDGES THAT HE/SHE HAS READ OR WILL READ THE PURCHASE AGREEMENT AND THAT BUYER FULLY UNDERSTANDS THE PURCHASE AGREEMENT, THAT BUYER HAS SIGNED OR WILL SIGN AGREEMENT FREELY, VOLUNTARILY AND KNOWINGLY. BUYER UNDERSTANDS BUYER WILL BE RELYING SOLELY ON THE REPRESENTATIONS THAT HAVE BEEN MADE IN THE PURCHASE AGREEMENT.
9. PAYMENT OF EARNEST MONEY DEPOSIT AND BALANCE OF PURCHASE PRICE
Upon the execution of the Purchase Agreement, the Winning Bidder will be required to present to escrow its earnest money deposit in the amount required under the Purchase Agreement. The escrow holder will be present and escrow will be opened immediately after execution of the Purchase Agreement. The earnest money deposit shall be the greater of Five Thousand Dollars ($5,000) or five percent (5%) of the Total Purchase Price (which includes the Buyer’s Premium) on the first Property purchased, and the greater of Ten Thousand Dollars ($10,000) or fifteen percent (15%) of the Total Purchase Price for any additional Properties purchased. The Earnest Money Deposit must be paid by cash or a cashier’s check (made payable to Buyer) for the first Five Thousand Dollars ($5,000) or Ten Thousand Dollars ($10,000), whichever is applicable, with the balance payable at the same time by means of cash or personal check. The Buyer shall pay the balance of the Total Purchase Price as well any additional costs and/or fees at the Close of Escrow in accordance with the terms of the Purchase Agreement.
10. CLOSING OF ESCROW FOR THE PURCHASE; EXTENSIONS
The escrow for the purchase transaction will be scheduled to close no later than thirty days after the execution of the Purchase Agreement, unless escrow is extended or cancelled in accordance with the provisions of the Purchase Agreement. The Seller may grant an extension of ten (10) days to the Buyer, in its sole discretion, upon the payment of a Two Thousand Five Hundred Dollar ($2,500) extension fee, which reimburses the Seller for its cost in extending the sales transaction and will not be a credit to the Buyer towards the Total Purchase Price. The Buyer agrees to pay all closing costs and other expenses as set forth in the Purchase Agreement.
The Seller will represent that it is in compliance with the federal Foreign Investment in Real Property Act, commonly known as FIRPRA, that it is exempt from withholding as it is not a non-resident alien, foreign corporation, foreign partnership, foreign trust or foreign estate; and, it will provide an affidavit to that effect prior to the close of escrow.
The Buyer may take title in any manner that he or she desires. At the time of execution of the Purchase Agreement, the Buyer will designate the manner in which he or she intends to take title. If title is not being taken by the Buyer individually, then the Buyer shall provide to escrow those organizational and authorizing documents requested by Escrow to verify the existence and authority of the entity taking title. The Seller shall execute a quitclaim deed, or such other deed as it determines in its sole discretion, to transfer title to the Buyer at the Close of Escrow.
For purchases where the Buyer will take title other than as an individual, the documents Buyer must provide at the time that escrow is opened include, without limitation: Articles of Incorporation, Articles of Organization for Limited Liability Companies, Certificates of Partnership for Limited or General Partnerships, and Certifications or Declarations of Trust, depending upon the particular entity taking title.
The Seller is under no obligation to clear any liens or exceptions affecting title to the Property or otherwise make the title to the Property marketable or insurable. If for any reason the Seller is not able to deliver fee title subject to the exceptions permitted in the Purchase Agreement, then either party may cancel the purchase transaction.
12. AGENCY DISCLOSURE
GAHA is not acting as an agent for the Buyer or as a dual agent for the Buyer and Seller. GAHA hereby refers prospective Bidders and all Buyers to the GAHA Website for Property specific agency disclosure documents.
13. PROCEDURE FOR DISPUTES
All persons present, participating or bidding at an Auction shall be deemed to have agreed to these Terms and Conditions. In the event of any dispute arising in connection with an Auction, which is not otherwise subject to the terms of a Purchase Agreement, the bidder, and all persons or entities acting on their behalf, shall be deemed to have agreed to initially mediate such dispute and then to arbitration thereof in accordance with the mediation and arbitration services of Judicial Arbitration and Mediation Services including the rules and procedures thereof.
Such mediations and arbitrations shall be conducted in the county in which the Auction occurred and all participants shall be deemed to have submitted to jurisdiction and venue in such county. These venue and jurisdiction provisions shall apply to any matters that may properly be brought before the courts. As to any such court actions the parties herein agree to waive any right they may have to a trial by jury. The rights and responsibilities of the parties as to all matters shall be governed by the laws of the state of California except to the extent unless the laws of a jurisdiction where an Auction is conducted are required to govern as to Auction procedures.
14. ADDITIONAL AUCTION INFORMATION
GAHA reserves the right to deny admittance of any person to the Auction or to request that any person leave the Auction at any time for actions interfering with the conduct of the Auction or for any other reason as determined by GAHA in its sole discretion. Properties may be withdrawn from the Auction at any time in the discretion of the Seller or GAHA, and may or may not be placed back in the Auction or at a subsequent Auction event. The auctioneer may change the terms of the Auction or the conditions for bidding upon a Property in its sole discretion.
All persons attending an Auction consent to any recording, audio or visual, of the Auction and its related activities by GAHA or persons or entities acting on its behalf. Consent is further given to the dissemination or public broadcast by GAHA and any other person or entity acting on its behalf of such recording including use of the image or likeness of any such attendee. This consent further extends to the dissemination of any information concerning or pertaining to Properties, bids, purchases or other activities or functions at the Auction including but not limited to the interaction of prospective Bidders online with the GAHA Website.
GAHA DOES NOT MAKE ANY REPRESENTATION OR WARRANTY, EXPRESS OR IMPLIED, AS TO THE ACCCURACY OR COMPLETENESS OF INFORMATION PROVIDED TO BUYER REGARDING THE PROPERTY AND BUYER AGREES THAT GAHA DOES NOT HAVE ANY LIABILITY FOR SUCH INFORMATION OR ANY ERRORS OR OMISSIONS CONTAINED THEREIN.