Terms

TERMS AND CONDITIONS

FOR BIDDERS

ONLINE AUCTION

REGISTRATION FOR AUCTION:

Registration is the way to confirm your attendance after having previously registered to participate in the online auction. Registration is permanently available for all properties to be auctioned online at www.reposubasta.com.

 

BID REQUIREMENTS:

Tenderers/Bidders must register on the platform www.reposubasta.com prior to the bidding, read and approve the Terms & Conditions and submit valid photo ID as well as evidence of funds or pre-qualification letter to [email protected]. Once the bidder is registered with a deposit of $1,500.00 per property, the tenderer may begin to bid.   If the property is not awarded, the initial deposit will be refunded on or before five (5) days.  The tenderer may not bid for the same property more than once at the same event. Online participation requires a non-refundable payment of $75.00.

RECOGNITION AND INSPECTION OF PROPERTIES TO BE AUCTIONED:

It is the bidder's duty and responsibility to inspect the properties prior to auction. Every bidder will have the opportunity to inspect the properties by coordinating an appointment by calling at (787) 418-3100. The inspection will be by going through the property at the bidder's own risk. The bidder once registered accepts that the properties to be subject of the "online" auction are of the bidder’s complete knowledge and condition, and therefore waives any claim to the seller and their representatives (REALITY REALTY). The tenderer declares that the tendered property is the same property inspected by him or his authorized agent prior to the bid. In case of land, the buyer is responsible for verifying the conditions of the land (soil study and survey). Investors must inspect ALL properties prior to auction as options subject to inspection will NOT be accepted. Once the option is made you agree that you have inspected the property and that you are optioning it at your own risk, therefore, if you give up the purchase no option deposit money will be refunded. The seller and his representatives (REALITY REALTY), will not be responsible for the omission by the tenderer / bidder or his authorized agent for the identification of the property and its conditions, or any errors of identity or other legality; this will not relieve the legal responsibilities incurred once the auction has been awarded and the option to purchase agreement subscribed by the parties.

DEPOSIT:

The bidding deposit will be $1,500.00 for all types of property, whether residential, commercial or land. The deposit will only be accepted through Paypal, Credit Card or your Bank Account. The awarded and sale of the properties to be auctioned is not subject to financing to complete the sale.  The bidder will have 48 hours to deposit the equivalent to 5%, if applicable, on any residential, commercial or land property and sign the Option to Purchase Agreement. If the deposit of the approved offers is not completed within the period of time stipulated herein, the bidder will forfeit the initial minimum deposit and REALITY REALTY / Reposubasta Online, at its discretion, may offer and negotiate the property to the next bidder. The deposit of all auctioned property is non-refundable.  The remaining deposit can be completed only by manager’s check or money order in the name of REALITY REALTYno cash will be accepted.

 

BIDDING PREMIUM:

The buyer / tenderer who wins and is awarded one or more properties will pay REALITY REALTY the equivalent of the premium of one to five percent (1% - 5%) by selected properties. This amount will be added to your auction offer, and will be additional to the approved sale price, without representing a deposit to be credited to the sale. Both the deposit of the transaction and the buyer's premium will be deposited in separate “Escrow” special accounts in favor of REALITY REALTY until the transaction process is completed and closed by transferring title of the property to the buyer.  If the "tender premium" is not paid during the first forty and eight (48) hours after the signing of the option to purchase agreement, the contract will not take effect and the check delivered as premium at the time will be for the benefit of REALITY REALTY and will not be subject to return under any circumstances.

 

PARTICIPATION OF EXTERNAL BROKERS / SELLERS TO RR

Any Real Estate Broker duly identified with his license issued by the Department of State and that is in force, may participate together with his client or tenderer in the auctions. It will be an indispensable requirement for Real Estate brokers, to register as a broker for their client and present evidence that they visited the property with the client. The registration procedure can be done through: www.reposubasta.com by filling in all the requested registration information, personally or by phone at (787) 418-3100. When registering the broker prior to the auction, you must send your license to [email protected]. Upon completion of the sale of the foreclosed property, the external Real Estate Broker, identified with the buyer will receive the one point twenty five percent (1.25%) commission on the sale price. The commission payment is subject to the closing of the sale of the foreclosed property. If the same bidder completes the sale of a second property or more, the broker identified with it will receive the seventy-five percent (.75%) commission of the sale price. The client is registered under his broker only when he sends the “Showing Report” Visit Sheet. Both the tenderer and his broker will have the opportunity to register until the day before the auction date. The commission will be paid only to the first broker who with his “Visit Sheet” validates that he exercised his function of showing the property to be properly tendered to his client. Broker who does not go with the client to the property, the commission will not be paid. Any customer who attends the designated inspection day without his broker will be assigned the sale to REALITY REALTYBrokers and Investors acting as a client for the purchase of self-interest properties, bloodline or investment will NOT charge commission or be represented by any Broker or Real Estate Seller. IT IS THE RESPONSIBILITY OF THE INVESTOR PURCHASER TO SEE THE PROPERTY BEFORE THE EVENT, OTHERWISE, FAILURE TO COMPLY WITH THIS REQUIREMENT WILL MAKE NON-REFUNDABLE THE OPTION MONEY GIVEN ON THE OPTIONED PROPERTY.

 

TERMS OF SALE:

THE OPTANTS ACKNOWLEDGE THAT THE SALE PRICE AGREED IN THIS AGREEMENT WILL NOT BE ALTERED OR SUBJECT TO THE RESULT THAT REDUCES ANY ASSESSMENT OR VALUE OPINION REQUIRED DURING THE TERM OF THE OPTION OR IS SUBJECT TO FINANCING OF THE PROPERTY AWARDED IN AUCTION.

Once the offer has been accepted by the selling party, the winning bidder must sign the option contract and complete remaining deposit.  The seller will grant a victorious bidder to sign an option contract and pay the deposit, a term of fifth teen (15) days to carry out the closing of the sale if IT IS A CASH SALE and forty-five (45) if it is financed (if property is financeable). The successful bidder / buyer will be responsible for the payment of all legal expenses (including internal revenue stamps and legal assistance stamps, proof of registration and notarial fee) of the sale at the closing of the property. In the case of some properties, the outstanding balance for maintenance and contributions could be applied in addition to the approved sales price. These cases will be duly identified prior to your tender and the corresponding amounts will be available on the day of the event. The seller reserves the right to award the property no later than five (5) days.  The external Real Estate Broker will present his credentials in order to sign the commission agreement. If you do not submit the requirements, you will not be entitled to payment of any sales commission. 

The term "Sale Subject to Confirmation" refers to the fact that the offer presented did not reach the minimum required by the selling party and in that case the property is automatically available.  Some properties may be approved "Subject to Confirmation" subject to a second approval after the event.  The term "Is Liquidated" means that the sum offered by the bidder met the minimum expectations of the selling party.  

 

If the bidder / buyer does not exercise the option of buying and selling a property that is awarded in the auction, REALITY REALTY and / or the seller reserve the right to withhold the deposit as compensation for the option granted to the bidder. The seller reserves the right to auction again any property that will not be acquired by the signing of the deed of sale corresponding by a victorious bidder before the end of the term of the option. The option of the tenderer to which an auction property is awarded is not transferable to acquire said property without the prior consent of the seller. The seller reserves the right to deny in its sole discretion the transfer or transfer of this option by the tenderer. The sale will be made through a Notary appointed by the selling party. The selling party will deliver the property through free sale of any lien, contributions on real property and / or maintenance fees under the Puerto Rico Condominium Law, except for the case of properties where it was previously disclosed that, in addition to the price of approved sale, the balance due for maintenance and contributions should be included. These cases will be duly identified prior to your tender and the corresponding amounts will be available on the day of the event. The selling party does not guarantee the conditions of the properties at the time of the sale. Every tenderer / buyer acknowledges that he has had the opportunity to make an inspection of the property and that he is fully aware of the current condition of the property or, if not having inspected the property, assumes the responsibility of bidding under his own risk. Likewise, he accepts that in the event that any property in the auction is awarded to him, he acquires it and accepts it as is ( “as is” ) and its current condition ( “where is” ), recognizing that the seller did not design, nor built the structure(s) located on the property, if any, and have not used it for any purpose. The tenderer / buyer relieves the seller of any defects or defects in construction and / or design and mechanical damage, as well as, but not limited to cracks, leaks, dislodging, obstructions in sanitary lines and / or aqueducts, power lines, etc., that may exist on the property or that will manifest in the future. Also, the seller will not be responsible for the zoning of the property or if the structure(s) located there complies with the zoning requirements enforced or applicable to the property or that it can be used for any particular use. When bidding for a property subject to this auction, the bidder / buyer ratifies and confirms that in case any property is awarded it acquires the same renouncing sanitation for hidden, apparent or any other kind of defects, and also ratifies and confirms its waives the other guarantees established by the Civil Code of Puerto Rico, including sanitation by eviction. REALITY REALTY, representatives of the selling party, reserves the right to withdraw any property from the auction or include other properties for it.

 

REALITY REALTY may offer, receive offers, sell, and / or withdraw any property to be auctioned prior to the auction.

 

RETURN OF OPTION:

If the bidder / buyer does not exercise the option within the term established in the contract of sale, REALITY REALTY (subsidiaries and / or affiliates) reserves the right to withhold the amount of money delivered as a deposit. This retention is made as compensation and / or penalty for the breach of the purchase option and for the period of reservation of the property. Some properties are not qualified for financing.  Properties identified as cash-only purchases will not be subject to financing and failure to comply will result in the option being confiscated.  Properties identified as purchases with financing and the purchasing party could not obtain the same without contributing to the denial of the loan, the deposit received will be refunded.  Once a property is awarded, the tenderer accepts that he has inspected the property and that he is optioning it at his own risk, therefore, if he gives up the purchase, no option deposit money will be returned.

REALITY REALTY, representatives of the seller, is not responsible for any defect in the title of the property that is auctioned. REALITY REALTY and / or the seller assume no responsibility for errors or omissions in the advertising, promotion or listing of the properties. The responsibility of REALITY REALTY and / or the seller are limited to the offers made through the advertising, listings and contracts made. The method and order to be carried out in the auction will be established by REALITY REALTY. Victorious bidders may carry out the sales in cash, or through duly pre-qualified financing at the time the option contract is concluded.  Interested bidders may obtain any documents of the auction through the REALITY REALTY office, located at 1253 Ave. Fernández Juncos Corner of Roberto H. Todd, San Juan, Puerto Rico 00907.

 

ACKNOWLEDGMENT AND ACCEPTANCE: The bidder and subscriber acknowledge and accept that they have read and understood these procedures, terms and conditions and are bound by them.  We reserve the right of participation.