New England’s Real Estate Auction Professionals
Sponsors
AGREEMENT
TO SELL REAL ESTATE
AT
PUBLIC AUCTION
-
This agreement is by and between ____________________ (SELLER)
and Daniel P. McLaughlin & Company LLC (AUCTIONEER).
The seller hereby engages the
Auctioneer to sell the real estate located at ________________________________,
MA .
-
Date & Time: Auction will take
place on May 3rd, 2008 commencing at 10:00 AM. The auction shall take place at
The Cape Codder Hotel, Route 132, Hyannis, Massachusetts.
-
Advertising/Promotion: The seller
shall pay the auctioneer $_______________as compensation for the costs
associated with arranging the auction including advertisement and promotion. The
promotion and marketing campaign for this auction shall include, but not be
limited to, advertisements in the following publications:
The Boston Globe, New York Times, Boston Business Journal,
-
Method of Sale: The property shall
be offered for sale with reserve.
By definition an
auction with reserve allows
the Seller to accept or reject any and all bids lower than the reserve price.
The Seller hereby acknowledges that the auctioneer has made no warrantees or
representations as to how many bidders might attend the auction or what the
high bid might be. This is a bulk sale of real estate and the seller
acknowledges that there will be numerous other properties included in this
auction. The Seller's minimum reserve price is $______________.
The seller acknowledges that this
is a net price and that there will be no fees or commissions of any kind added
to the reserve price. Seller hereby authorizes the auctioneer to sell the
property for any bid equal to or greater than this reserve price. Seller and
Auctioneer acknowledge that this reserve price will be kept in the strictest
confidence and will not be divulged to any prospective bidder prior to the
auction.
-
Starting Bid: Seller and Auctioneer
agree and acknowledge that each property in this auction will have a published
"Starting Bid". The starting bid
will be determined in the sole discretion of the Auctioneer. The starting bid
will be well below the market value of the property and will, in most cases,
also be well below the Reserve Price. The purpose of the starting bid is to
create excitement on the part of the bidders while at the same time assuring
that the bidding commences at some reasonable level. Both the Auctioneer and
the Seller acknowledge that the Seller is under no obligation to sell their
property for the starting bid price. With regard to the sale price, the
Seller's only obligation shall be to sell the property for any bid equal to or
greater than the reserve price.
-
Auctioneers Fee: The Auctioneer's
fee will be paid by the buyer in the form of a 6% buyer's premium.
If the Seller rejects the final
bid and subsequently sells the property to a registered bidder or related
entity then the auctioneer shall be paid a 6% commission. The auctioneer will
cooperate with buyer and seller brokers by offering each 2% of the buyer's
premium. If the Seller sells the property between the date of the execution of
this agreement and the day of the auction then the Seller agrees to pay the
auctioneer a fee equal to 1% of the sale price. This fee will be considered
compensation for arranging and promoting the sale as well as any role that the
auctioneer or the impending auction may have played in prompting the buyer to
agree to purchase the property during this timeframe. This fee shall be payable
at closing regardless of who is considered the procuring cause of the sale.
-
Broker Participation: If the
property is currently listed with a Real Estate Broker then the Broker and
Auctioneer hereby agree that the Broker may keep the property listed and
continue all efforts to sell the property. The Broker and Auctioneer agree to
the Fee sharing arrangement as further defined in paragraph 6 above.
-
Terms of Sale:
A $5,000 deposit in cash, bank
cashier's check, or certified check will be required in order to qualify as a
bidder. The balance will be due within 45 days. The
deposit will be held in escrow by the auctioneer. In
the event that the successful bidder defaults in purchasing the property then
the deposit shall be split equally between the Seller and Auctioneer. In the
event of a dispute between the buyer and seller regarding the disposition of
said deposit the auctioneer reserves the right to turn the deposit over to a
court of competent jurisdiction.
-
Property Inspection: Seller agrees
that either the seller or the seller's broker shall provide reasonable access
to the property for inspection by prospective bidders. This shall include at
least one open house on a weekend day during April, 2008.
- The property will be sold without warranty or representation except for the following:
- The seller shall comply with the provisions of Massachusetts Title V septic regulations by having a septic inspection done prior to the closing. The Seller shall provide buyer with either a certificate of compliance or Seller shall repair or upgrade the system as necessary to obtain such certificate of compliance.
- The Seller shall provide smoke detector and carbon monoxide detector certificate of compliance as required by state and local regulations.
- The Seller shall be obligated to give the buyer good clear record and marketable title to the property as defined by the Massachusetts Real Estate Bar Association (REBA).
The Seller warrants that the Seller owns good, clear record
and marketable title to the premises. Executed this ____ day of ___________,
2008.
_____________________________
Seller
____________________________
Auctioneer
_____________________________
Listing Broker (If Applicable)
31
New Chardon Street,
617-646-1019