Quick
REO - Home
Auction
Sales Terms and Conditions
This Auction will be managed
by Quick REO Capital, LLC (“Quick
REO”) and its affiliates. This
Home Auction Sales Terms and
Conditions document (the Terms
and Conditions) will put into
writing the description of the
Auction of residential real
properties ("Property"
or "Properties") owned
by selling entities ("Seller").
The Sellers of the Properties
agreed that Quick REO shall
auction the Properties under
the Terms and Conditions as
outlined below. Potential purchasers
who register for this auction
and accept these Terms and Conditions
will be considered "Bidders".
Winning Bidders will be required
to execute a Purchase Agreement
(as described in Section 4 below),
which shall incorporate these
Terms and Conditions.
1. By registering or attending
this auction you agree to these
Terms and Conditions.
2. REGISTRATION: Registration
to participate at a Quick REO
Home Auction is required. Only
registered participant and its
parties are allowed at the Auction.
To register, you must complete
the Quick REO Auction Registration
Form available at www.quickreo.com
or at the Auction venue on Auction
Day. In addition, all registered
Bidders must bring; 1.) Government
Issued Identification; 2.) $5,000.00
Cashier’s Check made payable
to registered Bidder, and; 3.)
personal/company check book.
Upon confirmation, you will
be a qualified Bidder. A Bidder
Card will be provided at check
in on the Auction Day.
3. DUE DILIGENCE: A.) Inspection:
All properties are available
for inspection by appointment
with property listing Agent
or at Quick REO Open Houses.
All Bidders are encouraged and
must complete their property
inspection prior to the auction.
Winning Bidders shall represent
that they are purchasing the
Property and relying solely
on their independent inspection
of the property in its existing
condition. The Seller and Quick
REO shall not be liable for
any grant, modification, or
revision based upon the failure
of the Property or any of its
improvements or appliances or
of its floor plans to conform
to any standards, codes and/or
any regulations. Any information
provided by the Sellers or professionals
hired by the Sellers regarding
the Properties are approximations
only, and are based on information
available. Actual information
may vary. In addition, the term
“Previously Appraised to” refers
to the higher of the appraised
value of the property in connection
with the previous mortgage,
a post foreclosure appraisal,
or a Broker Price Opinion of
value. B.) Occupied Properties:
Unless otherwise indicated in
the Auction Catalog or Quick
REO web-site, an “Occupied Property”
shall mean the Property that
is occupied and unavailable
for inspection prior to the
Auction Day. The only contingency
for the sale for any Occupied
Property shall be seven (7)
calendar days physical inspection
period, which should begin upon
receipt by the Winning Bidder
of a “Notification to the Buyer
of Vacancy.” Winning Bidder
must provide Quick REO in writing
within three (3) calendar days
following the inspection period
(7 days) to approve or decline
the subject transaction. If
the Buyer cancels the transaction
in writing and delivers such
cancellation to Quick REO, Attention:
Occupied Property Cancellation
at 18002 Cowan Ave, Suite 100,
Irvine, California 92416, and
also delivers such cancellation
to the Escrow, within the required
time, all deposit monies shall
be refunded to the Winning Bidder
within a reasonable period of
time. The return of all deposited
funds is the Winning Bidder’s
only remedy and after such,
neither Winning Bidder or Seller
or Quick REO shall have any
further obligations to each
other. In the event that the
Winning Bidder fails or chooses
not to inspect the Property,
and/or fails to provide written
cancellation of the transaction
within required time, then the
transaction shall be judged
as an approval of the sale for
the purposes of waiving of any
right to cancel based on such
inspection. C.) Inspection Indemnity:
During any due diligence, inspection,
visit and/or investigation of
the Property by prospective
purchasers, Bidders, Winning
Bidders or any person/entity
on their behalf (the "Inspectors"),
the Inspector shall (1) repair
all damage from such inspection,
and (2) indemnify, defend and
hold Seller and Quick REO harmless
from all liability, claims,
demands, damages and/or costs,
and any injuries to persons
directly or indirectly arising
out of such inspection.
4. "AS IS, WHERE IS AND
WITH ALL FAULTS": In order
for a Bidder to bid in any Quick
REO Auction and purchase any
Property to be sold by Seller
and Quick REO, the Bidder acknowledges
that he/she has read this agreement
and understands the same and
in particular, the provision
of this paragraph 4 as follows:
All of the Properties will be
sold by the Seller “as is, where
is and with all faults”. The
property has been acquired by
the Seller through foreclosure,
deed-in-lieu or similar process.
The Seller, its employees, and
agents have no actual knowledge
of the condition of the property
and have not inspected it. The
Seller, its employees and agents
have made no representations
or warranties oral or written,
concerning the property, and
any structures or improvements
thereon. The Purchase Agreement
is a contract for the purchase
and sale of residential real
estate, which sets forth the
terms and conditions of the
purchase and sale of the agreed
upon real estate between Buyer
and Seller. Without limiting
any other provision of the Terms
and Conditions of the Purchase
Agreement, as a prospective
Purchaser and Bidder you acknowledge
and agree that you are experienced
in business matters and understand
the risks and opportunities
of home ownership, (ii) you
have the financial resources
and credit to apply for and
obtain a loan to assist in the
payment of the Purchase Price
of the home (unless you are
to pay “all cash” for the purchase),
(iii) you have inspected the
home (or will inspect it during
the inspection period granted
to you, in the case of Occupied
Properties), and (iv) you are
acting for yourself and for
no other party not disclosed
on the Registration. The Winning
Bidder is acquiring the Property
in its present state and condition
as of the Auction day, with
all defects, whether known or
unknown, presently existing
or that hereafter may arise.
All prospective Purchasers/Bidders
acknowledge and agree that Sellers
and Quick REO have not made,
do not make and specifically
negate and disclaim any representations,
warranties, promises, covenants,
agreements or guarantees of
any kind concerning the Property,
including without limitation;
1) the value, nature, quality
or condition of the Property,
including without limitation,
the water, drainage, soil and
geology; 2) the income to be
derived from the Property; 3)
the suitability of the Property
for any and all purposes, activities
and uses which Bidder may conduct
thereon; 4) the compliance of
or by the Property or its operation
with any laws, rules, ordinances
or regulations of any applicable
governmental authority or body,
and whether all improvements
were built in compliance with
building permits duly issued;
5) the habitability, merchantability,
marketability, profitability
or fitness for a particular
purpose of the Property; 6)
the manner or quality of the
construction or materials, if
any, incorporated into the Property;
7) the manner, quality, state
of repair or lack of repair
on the Property; 8) the existence
of any view from the Property
or that any existing view will
not be obstructed in the future;
9) any other matter with respect
to the Property, or; 10) whether
the Property is located in a
special studies zone under the
public resources code, seismic
hazards zone, a fire responsibility
area, or a special flood hazard
zone.
5. PROPERTY CONVEYANCE: All
Properties are to be sold with
fee simple title, with title
insurance policies, subject
to current taxes, rights-of-way,
assessments, easements and other
conditions of record, and any
exceptions described in the
Preliminary Title Report and
other standard title exclusions.
The Buyer also pays for title
insurance issued to him/her/it
as owner upon acquiring the
Property. Title insurance policy
to be issued by Seller or Quick
REO through a designated nationally
recognized title insurance company.
Properties represented as “Free
and Clear Title” shall mean
that the Seller guarantees that
all properties will be eligible
for standard title insurance
policy.
6. RESERVE PRICE: The Seller
of each property has established
an unpublished minimum selling
price, which is the Reserve
Price. The Seller of each Property
has established an Opening Bid
price, which is not the Reserve
Price. Except where prohibited
by law, ”Bid Caller” may open
bidding on any Property at the
Starting Bid price by placing
a bid on behalf of the Seller
and may further bid on behalf
of the Seller up to the amount
of the Reserve Price. If no
Bidders meet the Reserve Price,
the Seller is under no obligation
to sell the Property.
7. BUYER’S PREMIUM: Quick REO
will charge five percent (5%)
of the Winning Bid amount or
minimum $5,000.00 (whichever
is greater) , as a fee to any
Winning Bidder to cover auction
day expenses, marketing costs
and other general and administrative
auction expenses (the "Buyer's
Premium"). The Buyer’s
Premium will be added to the
Winning Bid to obtain an adjusted
value for the purchase price
of the Property (the "Adjusted
Winning Bid"). Therefore,
the Total Purchase Price on
the Auction day and at the closing
is equal to the Winning Bid
plus the Buyers’ Premium. For
example, if the Winning Bid
is $100,000, the Buyer's Premium
is $5,000 (5% of $100,000).
The Total Purchase Price is
$105,000. The Total Purchase
Price does not include other
amounts payable by the Buyer
during closing, such as escrow
fees, title fees, closing fees,
property taxes, insurance, etc.
8. WINNING BIDS SUBJECT TO
CONFIRMATION: If the winning
bid amount is below the Reserve
Price, Quick REO will inform
the Winning Bidder that acceptance
of its winning bid price is
"subject to confirmation."
The Winning Bidder agrees that
its purchase is subject to the
Seller or Seller’s agent approval
of the purchase, which shall
be given or denied at their
sole discretion within five
(5) business days following
execution of the Purchase Agreement.
In the event Seller does not
confirm the purchase, the Buyer’s
Deposit will be refunded to
the Buyer.
9. PAYMENT OF DEPOSIT AND REMAINING
BALANCE: The Winning Bidder
will be required, per the Purchase
Agreement, to pay as its Earnest
Money Deposit, (a) five percent
(5%) of the total purchase price
on any first property purchase,
(b) ten percent (10%) on the
2nd property purchased and (c)
fifteen percent (15%) of the
total purchase price on any
Property or Properties beyond
the 2nd property purchased.
The first $5,000 of the Earnest
Money Deposit must be paid in
the form of a cashier’s check,
made payable to the Winning
Bidder. Upon being determined
the Winning Bidder, the Earnest
Money Deposit shall become non-refundable
and immediately deposited with
an escrow agent at the Auction.
The balance of the Total Purchase
Price after offset for the Earnest
Money Deposit, and all other
costs, fees and Buyer's Premium,
must be paid as described in
the Purchase Agreement.
10. PROPERTY CLOSING: Sales
shall close, per the terms of
the Purchase Agreement through
the designated escrow company
or closing attorney, within
thirty (30) calendar days after
the date of the Auction unless
extended. In certain cases,
Seller may grant a ten (10)
day extension of the closing
date for a non-refundable extension
fee of three thousand dollars
($3,000). This fee will not
be credited towards the Total
Purchase Price. Requests for
extension must be made at least
five (5) calendar days prior
to the scheduled closing date.
All extension requests are evaluated
by Seller on a case-by-case
basis and may be granted or
denied in their sole and absolute
discretion. Winning Bidders
shall be required to pay customary
and normal closing costs. Seller
may extend closing date at its
discretion. Any Seller extension
must be made five (5) calendar
days prior to the scheduled
closing date.
11. VESTING: Winning Bidders
taking title in the name of
an entity such as a corporation,
trust, partnership, or LLC (not
an individual person) must provide
at the Auction, certain entity
formation documents applicable
to the entity. Also, escrow
may require additional documentation
prior to closing.
12. FINANCING: Financing may
be provided at the Auction,
subject to credit approval,
and the lender's requirements.
Quick REO’s designated lender(s)
may not provide financing on
all Properties, and advises
Bidders to pre-qualify for financing
to expedite the closing process.
Quick REO further advises Bidders
to contact Quick REO’s designated
lender(s) for pre-qualification
procedures. If a Winning Bidder
uses third-party financing (financing
other than through the Quick
REO designated lenders), the
sale will not be contingent
upon financing, nor will the
closing be extended for that
purpose. All Winning Bidders
are deemed to consent to and
authorize Quick REO's lender
and their agents and/or any
third party to the purchase
transaction, to obtain any type
of credit report on the Buyer
at the auction or at any time
prior to the closing of the
transaction.
13. AGENT/BROKER PARTICIPATION:
A two and one half percent (2.5%)
broker commission, calculated
on the winning bid amount, will
be paid by Quick REO to agents
or brokers who have registered
as a “Registered Broker” online
at www.QuickREO.com at least
two (2) business days prior
to the Auction, and whose client(s)
successfully purchase the Property
and close the transaction. You
are required to personally check
in prior to the start of the
Auction, remain with your client
throughout the Auction, and
execute all necessary documentation
during the post-Auction process.
No commission on any Property
will be paid to a Registered
Broker or Agent acting as a
principal in the purchase of
any Property.
14. GENERAL AUCTION INFORMATION:
Sellers and Quick REO reserve
the right to deny any person
admittance to or expel anyone
from the Auction site for interference
with the Auction activities,
nuisance, solicitation or any
other reason. The Seller and
Quick REO have the right to
postpone or cancel the Auction,
to withdraw any Property from
the Auction and to change any
venue of the Auction or make
any other change with respect
to the Auction through an announcement.
Offers made at the Auction are
void where prohibited by law.
The respective rights and obligations
of the parties and the conduct
of the Auction shall be governed
by, interpreted and enforced
under the laws of the State
of Nevada. If a Winning Bidder
refuses to execute the Winning
Bidder Confirmation and/or does
not enter the Business Office
area within five (5) minutes
of the “Bid Caller’s” acknowledgement
of the winning bid, then Quick
REO can declare the Winning
Bidder in default, re-auction
the property immediately at
its sole discretion, and the
bid shall be null and void and
Quick REO shall have absolutely
no further liability or obligation
to that Bidder.
Each attendee at the Auction
shall be deemed to have consented
to the issuance of press releases
and other public communications
by Seller, Quick REO, Bid Caller,
or their agents regarding the
Auction or the properties offered
or sold at the Auction.
Any information that you provide
to Quick REO may be shared with
other persons or companies affiliated
with Quick REO. This information
may also be shared with persons
or companies that are not affiliated
with Quick REO, such as persons
or companies that provide products
or services that may be of interest
or assistance to you. Some of
these companies may engage in
direct marketing to inform you
of their services or products.
You may opt out of Quick REO
sharing your personal information
in the future by contacting
us via our website or by written
notice.
15. JURISDICTION AND DISPUTE
RESOLUTION: By bidding at the
Auction, whether present, in
person, or by agent, each Bidder
shall be deemed to have irrevocably
(a) submitted to the courts
of competent jurisdiction in
Orange County, California, in
connection with any arbitration,
proceeding or other legal process
relating to the Auction and/or
the offering or sale of any
Property (“Action”) regardless
of where the Property is located,
(b) agreed that any Action may
be heard in any such court,
(c) waived the defense of any
inconvenient forum to the maintenance
of any Action in any such court
and (d) agreed to be subject
to arbitration, service and
legal process of each court
in connection with any Action.
Upon execution of the Purchase
Agreement, all rights and remedies
with respect to the Property
shall be governed by such Purchase
Agreement. Furthermore, Buyer,
Seller and Quick REO agree to
mediate any dispute arising
between them out of this Agreement
or any resulting transaction
before resorting to arbitration
or court action as described
in the Purchase Agreement. By
accepting these Home Auction
Sales Terms and Conditions,
you are agreeing to have any
dispute decided by neutral arbitration
as provided by California law
and you are giving up any rights
you might possess to have the
dispute litigated in a court
or jury trial.
16. THE FOREIGN INVESTMENT
IN REAL PROPERTY TAX ACT: For
purposes of compliance with
The Foreign Investment In Real
Property Tax Act, Seller represents
that it is not a non-resident
alien, foreign corporation,
foreign partnership, foreign
trust or foreign estate and
agrees to execute an affidavit
to this effect at the time of
closing.
02/29/2008
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