TERMS OF SALE FOR PURCHASE

OF REAL ESTATE

THESE PREMISES ARE OFFERED upon the following terms and conditions:

1.      Bidder will be required to pay a non-refundable earnest money deposit (the “Deposit”) of ten percent (10%) of the Bid Price or    ten thousand       dollars ($  10,000 ), whichever is greater.  At the completion of the auction, the successful bidder must immediately remit a Cashier’s Check payable to the Auction Company in the amount of ten thousand     dollars ($       10,000 ).  In the event that ten percent (10%) of the bid price is greater than     ten thousand   dollars  ($ 10,000 ), the Bidder must pay the remainder of the Deposit, bringing the total deposit to ten percent (10%), within three (3) business days. 
 

2.      The Deposit will be refunded only if Seller rejects is unable to deliver clean title.
 

3.      The Property is being sold No Reserve, without a minimum bid. Any third party with a security interest in the Real Property retains the right to bid at the auction.

4.       A Buyer’s Premium of ten percent (10%) will be added to the bid price, to make up the Total Purchase Price.

5.      The balance of the Purchase Price is to be paid on or before   August 3, 2009   at the time and place of closing to be determined by the Seller.  If the Bidder is not ready to close title by the scheduled closing date, any adjournment granted at the request of the Bidder shall be only upon the provision that all prorations and adjustments shall be as of the scheduled closing date.

6.      The Real Property is being sold and the Bidder agrees to accept the Real Property in its’ present condition, as is where is, with all faults, in all respects, subject to utility easements, zoning ordinances, and any other restriction of record.  No warranties as to physical condition, environmental condition, habitability, suitability to particular purpose, tenancies, or compliance with any laws, codes or ordinances, including those relating to water supplies and septic systems (“Deficiencies”) are made by the Seller, unless specifically stated herein. 

7.      Cost and responsibility for curing Deficiencies, if any, is the Bidder’s, and the correction and cure of any Deficiencies shall not be a condition of this sale or in any way affect Bidder’s obligations under this agreement.  Any inspections by Bidder or his/her/their representatives shall be at Bidder’s expense and for his/her/their information only.

8.      Utilities and any other matters appropriate for prorating and adjustment shall be prorated between the Seller and the Bidder to the date of closing.  Any installments for local improvements not due and payable at the time of closing shall be paid for by the Bidder as they thereafter become due.  The Real Property taxes will be prorated between the Seller and the Bidder to the date of closing. Closing fees, if any, will be shared equally between Seller and Bidder.  In the event the Property is sold in subdivided parcels at the auction, the cost to provide a new survey will be shared equally between Seller and Bidder(s).

9.      The Seller shall be required at his own expense to furnish to the Bidder prior to the date of closing, a preliminary binder of title insurance by a recognized title company, showing good and marketable or insurable title to the Real Property.  At the time of closing herein, the Seller shall tender to the Bidder a deed to Real Property free and clear of all liens and encumbrances except for easements, restrictions and covenants of record together with an owner’s policy of title insurance.  The title company shall act as closing agent with respect to the closing of this sale.

10.  This sale is not contingent upon the ability of the Bidder to secure financing, sell another property or any contingencies whatsoever.

11.  If the Bidder fails to comply with these terms of sale, the Deposit made on account hereof shall be forfeited.  The Seller shall be entitled to pursue all other available legal and equitable remedies against Bidder, including but not limited to holding Bidder liable for any deficiency resulting from a subsequent resale.

12.  The Auction Company was retained by the Seller and is representing the Seller exclusively in the auction proceedings.

13.  In the event of any litigation arising out of this sale, this agreement or any breach thereof, the successful party in any litigation shall be entitled to attorney fees and all costs of litigation.

14.  This sale shall be governed by, and construed in accordance with, the laws of State of Indiana.

15.  If I am the successful bidder, I agree to immediately execute a Purchase Agreement in accordance with these terms at the end of the auction.