Terms

AUCTION REGISTRATION:

The registration is the way to confirm your presence and participation at the auction, after having previously registered to participate. Registration will begin at 8:30 am, August 11, 2018, at the Hotel Sheraton Convention Center, San Juan, Puerto Rico.

BIDDING REQUIREMENTS:

Bidders shall do the following: provide full name, present a valid identification with photo and this document, signed by the bidder. Once registered, the bidder shall present to the officer in charge, its financial institution qualification document if financing the purchase and the Good Faith Deposit, which will be, in the form of a money order or certified check. Cash will not be accepted.

INSPECTION OF PROPERTIES TO BE AUCTIONED:

It is the duty and responsibility of the bidder to inspect the properties prior the auction. All bidders will have the opportunity to inspect these properties on the dates and times that have been assigned in the listings brochures or by appointment. The inspection will be performed, by touring the property grounds. This activity will be at the bidder sole risk. Once registered, the bidder accepts that he has knowledge of the property condition to be auctioned, therefore renounces any future claims to the seller and Reality Realty, the seller representatives. The bidder declares that the auctioned property is the same property inspected by him or by his representative. In the case of lands, the buyer is responsible to check the accuracy of the measures and soil conditions. Investors and bidders must inspect all properties before the auction, since “subject to inspection” bids will not be accepted. Once the bid is made, you agree to the fact that you have inspected the property and bid at your own risk. If the bid is withdrawn, the deposit money for the option will not be returned. The Seller and its representatives (Reality Realty) will not be liable for failure by the bidder or his authorized agent, for identifying the incorrect property or miss judging its conditions; Identifying the incorrect property will not relieve the bidder of its legal commitment, once the bid is awarded.

DEPOSIT:

A deposit of 5% of the sale price for commercial properties and lands will be required. For residential properties, a 3% of the sale price will be required.

Awarded bids deposits, are not refundable. The allocation and sale of the properties to be auctioned is not subject to financing to complete the transaction. The deposit required for each property is specified in the information of the properties to be auctioned on the website www.reposubasta.com.

Only certified check or money order to the order of REALITY REALTY will be accepted. Cash will not be accepted.

All successful bidders must sign an Option Agreement and make the minimum initial deposit of $3,000.00 for properties which selling price is less than $100,000.oo and $5,000.00 for properties which selling price is greater than $100,000.00. Bidders will have two (2) working days to deposit the corresponding balance to complete 3% of the sale price for residential properties and 5% for commercial properties and lands. If such deposit is not completed at the time herein specified, such bidder will lose the deposit and Reality Realty, at its discretion can offer and negotiate the property to the next highest bidder.

PARTICIPATION OF BROKERS/SELLERS:

All Real Estate Brokers properly identified and that possesses a current license issued by the P.R. Department of State will be allowed to participate in the auction, along with its customer or bidder. A Real Estate Brokers must have previously, registered as the broker of its customer and present evidence that they have visited the corresponding property. Such registration should be made through: www.reposubasta.com by filing all the requested information, personally or by telephone to (787) 418-3100. By registering prior to the auction as a broker, you must send a copy of your license to: perezg@realityrealtypr.com. Upon completion of the closing of the awarded property, the real estate broker, identified by the purchaser will receive one point five per cent (1.5%) commission of the selling price.

The payment of the commission will be made after the transaction of the closing. If a bidder acquires more than one property, its broker, if any, will only receive point seventy-five percent (.75%), of the sale price of properties in excess of one. Under no condition, will a broker receive commission payment, if he doesn’t attend the auction. Commission will only be awarded to brokers attending the auction. Bidders will be recognized as register under a broker, only if they present the corresponding "showing report". Both, the bidder and the broker will have the opportunity to sign up for the auction, until the day before of the auction date.

All bidders entering the event without been registered or not associated with a real estate broker, will be automatically registered as a REALITY REALTY client. The Commission will be paid only to the broker that attends with the bidder and present the corresponding "showing report". Brokers that do not visit the property with its client will not be paid commission. Any client, who attends the "open house" without its broker on the designated inspection day, will be recognized as a REALITY REALTY customer. Brokers and investors who act as customer for the purchase of properties for themselves, relatives, or investment will not be entitled to commission or be represented by another broker. IT IS THE RESPONSIBILITY OF THE INVESTOR TO VIEW THE PROPERTIES PRIOR TO THE EVENT, FAILURE TO COMPLY WITH THIS REQUIREMENT, ONCE THE PROPERTY IS AUCTIONED, THE OPTION MONEY WILL NOT BE REIMBURSED.

BIDING WHEN THE CLIENT IS NOT PRESENT:

If a client cannot attend the auction, he can only participate in the auction through a representative who is duly authorized to represent him through a letter or power of attorney (it could be your broker). At the registry the authorized person will present the corresponding document, copy of photo ID of the buyer and a Manager’s Check for the deposit, to a REALITY REALTY representative. Should the bidder be successful, his representative shall deliver a copy of the letter and the deposit check to a REALITY REALTY staff member and bidder will have forty-eight (48) hours to sign the Option Contract.

TERMS OF THE SALE:

THE BIDDERS RECOGNIZE THAT THE SALE PRICE AGREED IN THE OPTION CONTRACT WILL NOT BE CHANGED AND WILL NOT BE SUBJECT TO THE RESULT OF ANY APPRAISAL OR OPINION OF VALUE REQUESTED DURING THE TERM OF THE OPTION OR THE FINANCING PROCESS.

Once the offer is accepted by the seller, the successful bidder must sign the Option Contract and make the corresponding deposit. The real estate external Broker will present its credentials in order to sign the Commission Agreement. If these requirements are not met, the external Broker will not be entitled to a commission. The seller will grant the successful bidder that have signed the option agreement and made the deposit, a thirty (30) days term, to carry out the closing of the sale. The bidder / successful buyer will pay all legal costs, including the recording fees and legal stamps, registration and notarial fees and stamps. In certain properties, the buyer will pay maintenance fees and property taxes. The seller has the right to reserve the adjudication of the bid for a period of five (5) days after the date of the auction and every bidder understands that the all bids are subject to this condition.

The term "Sold Subject to Confirmation" refers to the fact that the offer made, did not reach the minimum required by the seller, and in such case the property is automatically available. The term "is settled" means that the sum offered by the bidder meets the minimum expectations of the seller, so the bidder can option the property, in this specific case a bell is rung as a sign that the Seller is willing to sell such property.

If the bidder / buyer does not exercise the sale option of a property that was awarded at the auction, REALITY REALTY and/or the seller reserve the right to retain the deposit as compensation for the option granted to the bidder. The seller also reserves the right to auction any property that is not acquired by the signing of the deed of sale relevant by a successful bidder before the term of the option is finalized. The awarded bid is not transferable without the written consent of the seller. The seller reserves the right to deny at its sole discretion the reassignment or transfer of the awarded option. The sale will take place through a lawyer appointed by the seller. The selling party will deliver the property free of all liens, taxes, and maintenance fees. Buyer will pay the maintenance fees and property taxes of certain properties announced at the event. The selling party does not guarantee the conditions of the properties at the time of the sale.

All bidders/buyers acknowledges that they have had the opportunity to make an inspection of the property and is in full knowledge of the current condition of the property and that should any property be awarded to him, during the auction, it is acquire and accept "as is", in its current condition and "where is", recognizing that the seller has not designed nor built the structure (s) located on the property, and has not used it for any purpose.

The bidder / buyer relieves the seller of any construction defects, flaws and/or design or mechanical defects, as well as, but not limited to cracks, leaks, detachment of the plaster, obstructions in the sanitary lines or aqueducts, power lines, etc., that may exist on the property or that is manifest in the future. The seller shall not be liable for the zoning classification of the property or that the structures there located, complies with the zoning requirements in effect or its particular use.

When biding for a property during this auction, the bidder / buyer ratifies and agrees, that he is doing so, renouncing to his right to solicit the sanitation of hidden vices, apparent or of any other kind. In addition, he ratifies and confirms that he is renouncing to any other warranties established in the Puerto Rico’s Civil Code, including compensation for eviction. This is why it is mandatory to inspect and document such property prior to attending the auction. Reality Realty, as representatives of the seller, reserves the right to remove any property from the auction or include other properties in it. Reality Realty can offer, receive offers, sell, and/or remove any property to be auctioned prior the auction.

DEPOSIT REFUND:

If the bidder / buyer do not exercise the option within the term established in the option, REALITY REALTY (subsidiaries and/or affiliates) reserves the right to withhold the sum of money given as deposit. This retention is performed as compensation and/or penalty for breach of the purchase option and the period of reservation of ownership. PURCHASING IN THIS AUCTION IS NOT SUBJECT TO FINANCING. There will be no refund of the option deposit if the bidder does not qualify with the financial institution of its choice. Once a bid is awarded on a property, the bidder accepts that he has inspected the property and it has been optioned it at his own risk, therefore, if he withdraws from the transaction purchase, the amount deposited as option, will not be reimbursed.

REALITY REALTY, as the seller's representative, is not responsible for any defect in the property title. REALITY REALTY and/or the seller do not assume any liability for errors or omissions in the advertising, promotion of the listed properties. REALITY REALTY’s and/or the seller liabilities are limited to the offers made through advertising, listings and contracts made. REALITY REALTY will set the method and order in which the auction will be performed.

The successful bidders may carry out, cash purchases or through financing, by properly documenting the origin of the funds to be used to acquire the property in “cash” and by presenting a recent loan prequalification document issued by a financial institution, at the time of the signature of the Option Contract.

Interested bidders may acquire any document or auction information by visiting REALITY REALTY’s headquarters located at, 1253 Ave. Fernández Juncos, Roberto H. Todd corner, San Juan, Puerto Rico 00907.

*************** This activity will be recorded in its entirety. These recordings may be used for existing or future promotional purposes.***************

ACKNOWLEDGEMENT AND ACCEPTANCE:

The bidder and undersigned acknowledge and agrees, that they have read and understood these procedures, terms and conditions and are bound by them.