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Key Real Estate Terms

Contract of Sale: The successful high bidders (Buyers) at every auction are bound by the written terms and conditions as publicized for each sale. For personal property buyers, this is limited to the Bidder’s Card which will be signed at time of registration (a driver’s license is required to register). The act of bidding at the sale by anyone will be deemed a representation and warranty to the Seller and Kraft Auction Service that he/she has read the Terms in their entirety, together with any amendments and/or attachments, prior to bidding. Attachments to the Contract of Sale may include a Seller’s Disclosure Form prepared by the Seller, a Title Exam or Title Insurance Commitment prepared by a third party closing or title firm. If a potential bidder has not read and agreed to be bound by all of these documents prior to the auction, he/she should not bid.

Inspections: Homes, Buildings and Personal Property are generally open by appointment and immediately prior to the sale unless otherwise advertised. See property detail page for specific times/dates. Vacant land and lots may be inspected at your convenience. Registration is required at the Auction for a Bidder’s Card (a driver’s license must be presented). All properties are sold “AS-IS” (contracts are not contingent on any buyer or lender inspections) so Buyers should make any and all desired inspections during these viewing hours. All auctions are on-site unless otherwise indicated. All properties are made available solely at prospective buyers own risk and expense, including without limitation all dangers inherent, known, or unknown; and Sellers and Kraft Auction Service expressly disclaim any “invitee” relationship which could be construed and therefore any liability incurred by any person inspecting, viewing, or attending the sale of any property.

Title: A title insurance commitment for each property is prepared and available prior to closing. The Seller warrants insurable title per the terms of the Contract of Sale, and will evidence same by obtaining the title insurance commitment from a third party title/closing firm identified in the Contract of Sale as amended. The third party title examiner issues the title policy, and Buyer is welcome to retain their own counsel to review title and/or policies. Prior to bidding, potential buyers should review and understand the restrictions and obligations placed on the Property, whether disclosed in the Contract of Sale or otherwise of record in city/county records or announced. Such restrictions may be found at the county courthouse where the property is located, the county and city planning and zoning commissions or departments, and by consulting with an attorney. At closing, the Buyer shall be given insurable title as the property is transferred by a deed prepared by Seller, clear of liens or encumbrances (taxes, HOA dues, transfer fees, etc. will be prorated between the Buyer / Seller).

Closing Costs: The Seller typically pays for certifying base abstracts (if necessary); curing any title defects (as determined by the third party title examiner); revenue stamps or other taxes customarily due from Seller upon filing of a deed; and 1/2 of the closing fee. The Buyer pays the third party title examination fee (typically $150-250); the title search fee (if required, typically $150); the title insurance premium (based on sales price, typically a minimum of $250 plus approximately $5 additional for each $1,000); and 1/2 the closing fee. Current year’s real estate taxes are usually pro-rated through day of closing. These costs to the Buyer will usually total a minimum of $1,500 (consult the Contract of Sale as amended for the auction and/or other documents or announcements regarding the sale for each property’s specific instructions regarding closings costs and tax prorations). Kraft Auction Services charges a Buyer’s Premium of 5-10% or an auction service fee of $2,500 per property. Please see the specific Property Detail Page Terms of Sale to determine fees, if any, for a particular property. In addition, Buyer may have additional closing costs relating to any loan secured by Buyer; any inspections ordered prior to the auction; and any survey, plat or other fees announced for the sale. Potential Buyers and Sellers should consult his/her lender and/or the closing company for a more detailed estimate of closing costs.

Closing Date: Most auctions will require the Buyer to close (pay the balance of the purchase price plus closing costs) within 30 days from the date of the auction. Sellers will usually offer a Buyer reasonable extensions if more time is needed, but this decision is solely that of the Seller, and will include a per diem charge for each day the Buyer is late (.0005 x Sales Price Per Day, $150 per day minimum). By bidding, each potential Buyer is representing and warranting to the Seller and Kraft Auction Service, their agents, employees, and officers, that Buyer is accepting the Property in its current condition, including fixtures, equipment and appliances; is accepting the title per the title insurance commitment and is prepared to close with cash immediately.

Down Payment: Most auctions will require the Buyer to make a cash deposit at the auction (personal checks are accepted and electronically processed for immediate deposit) for $5,000.  Please check upcoming auctions for exact details. The down payment is non-refundable. If for any reason Seller does not perform per the terms of the Contract, the sole remedy shall be the return of Buyer’s down payment.

7. Financing: If a potential Buyer plans on using financing to close, then they should take all steps necessary to secure some prior to bidding, since auctions are never contingent on financing. There are many lending institutions that offer pre-approval for their financing before an auction, including for example sources found at Farm Credit Links or the National Mortgage Loan Directory. A list of local lending sources may be available at the Open Houses or by calling the offices of Kraft Auction Services, and/or may be found in the Yellow Pages of the Telephone Book under “Banks” and “Mortgages”. All explanations, representations, and disclosures concerning the terms, conditions and provisions of a commitment for financing are the responsibility of the Buyer’s lending institution and not of the Seller or Kraft Auction Service.

Disclaimer: Neither Kraft Auction Service, nor any of our agents, officers, or employees are experts regarding any property offered, including without limitation (a) the value, nature, quality or condition of the property, including without limitation, the water, soil, geology, (b) the income to be derived from the property, (c) the suitability of the property for any and all activities and uses which buyer may conduct thereon, (d) the compliance of or by the property or its operation with any laws, rules, ordinances or regulations of any applicable governmental authority or body, (e) the insurability, habitability, merchantability, marketability, profitability or fitness for a particular purpose of the property, (f) the manner or quality of the construction or materials, if any, incorporated into the property, (g) the manner, quality, state of repair or lack of repair of the property, (h) the flood or water damage history of the property, or (i) any other matter with respect to the property. BUYER IS THEREFORE STRONGLY ADVISED TO SEEK FROM INDEPENDENT SOURCES OF BUYER’S CHOOSING EXPERT ADVICE AND/OR INSPECTIONS, INCLUDING LEGAL ADVICE, TO BUYER’S COMPLETE SATISFACTION CONCERNING ANY PROPERTY AND THE TERMS OF SALE PRIOR TO THE AUCTION. Every potential Buyer should satisfy him/herself regarding all possible defects, if any, that might have been caused to structures or improvements to the Property as the result of soil movement, water conditions, settlement, storm damage, fire, or any other possible causes. Inspections every potential Buyer should obtain prior to an auction include, but are not limited to, those concerning structure and soils (from an architect or professional engineer), roof (including structural members, decking and shingles, fire history), plumbing (including well, sewer lines, septic system), heating/cooling systems (including duct system), electrical systems, built-in appliances, security system, pool/spa, appraiser valuations, surveyor information, flood and hazard insurance availability and costs, and a HUD approved infestation (termite) report. All such inspections should be conducted by a qualified and experienced expert of Buyer’s choosing and each potential Buyer is advised to accompany the inspector(s) during the inspection(s). Potential Buyers should not rely on Seller, Kraft Auction Service, a friend, or him/herself to make these or any other inspections. The costs of all inspections, including all liability attendant thereto, are the potential Buyer’s sole responsibility. To locate experienced and qualified inspectors, potential Buyers should consult the Yellow Pages of the Telephone book under the various headings listed herein, and verify appropriate licenses and all references given. If Buyer asks and is given recommendations, by Kraft Auction Service or any other person, Buyer should be sure to receive the names of at least three inspectors for each such inspection to select from. These may be provided by an attorney, lender, or other informed sources. If a potential Buyer has any objection to the Property based on any defects or information disclosed or learned about the Property per the recommended inspections herein, he/she should not bid. INFORMATION AS MIGHT OTHERWISE BE PROVIDED IS FROM SOURCES DEEMED RELIABLE, BUT NO WARRANTY OR REPRESENTATION IS MADE AS TO ITS ACCURACY. KRAFT AUCTION SERVICE AND THE SELLERS EXPRESSLY DISCLAIM ANY LIABILITY FOR ERRORS, OMISSIONS OR CHANGES REGARDING ANY INFORMATION PROVIDED. POTENTIAL PURCHASERS ARE STRONGLY URGED TO RELY SOLELY UPON THEIR OWN INSPECTIONS AND OPINIONS IN PREPARING TO PURCHASE ANY PROPERTY AND ARE EXPRESSLY ADVISED NOT TO RELY ON ANY REPRESENTATION MADE BY THE SELLERS OR THEIR AGENTS. PROPERTIES MAY BE ADDED OR DELETED AT THE DISCRETION OF KRAFT AUCTION SERVICE.

Lot Lines, Easements and Dimensions: If a potential Buyer has any questions or material needs regarding exactly where lot lines, tract boundaries, or any easements are located, as well as the dimensions of land and/or buildings, Buyer may choose to have a staked survey made by a licensed surveyor prior to bidding at Buyer’s expense. Buyer may request that the survey show the location of utility easements and driveways, proximity of buildings to lot lines, and the dimensions of improvements. Any survey or plat provided by the Seller or Kraft Auction Service may include fees to be charged to the Buyer, but is provided for general information purposes only and is not warranted as accurate or in any other way meeting Buyer’s material needs.

10.  Equal Opportunity: Kraft Auction Services staff are of many legal, auction and real estate organizations, including the National Association of REALTORS, the National Auctioneers Association and the Indiana Auctioneers Association all of which espouse a firm commitment to providing professional services to any person, regardless of race, color, religion, sex, handicap, familial status, or national origin. Our firm shall not be a party to any plan or agreement to discriminate against a person or persons on the basis of these or any similar prejudices.

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