|
| General Questions for Interested Buyers |
|
| What are the advantages of buying real estate through an Online Auction? |
|
Buying property through an online auction allows you to experience a quick purchase and closing,
eliminates lengthy negotiations, and provides you the opportunity to determine the price you are
willing to pay. Buyers enjoy the convenience of conducting due diligence in their own time—
downloading all of the appropriate documents and information on their own computer, from the
comfort and privacy of their home or office. Bidders also appreciate the transparency of the online
bidding process. Additionally, LFC’s patent-pending feature Last Call® eliminates the pressure that
comes with traditional “outcry” auctions. When there is high interest and competition for a property,
the Bid Deadline is extended, allowing bidders the opportunity to consult with business partners, a
financial consultant or their broker and confidently place a higher bid.
|
|
| What types of properties are auctioned on LFC.com? |
|
LFC.com auctions all types of commercial real estate, including rural land parcels, mapped lots,
office and retail buildings, warehouses and other industrial buildings for landowners, builders and
developers, financial institutions, investors and corporations. However, LFC.com does not auction
personal property for private proprietors.
|
|
| Where will the auction be held? |
|
All of our auctions are conducted via the Internet, on our website www.LFC.com. Our convenient online
auction format allows bidders to place bids from their own computer, in the comfort and privacy of
their own home or office.
|
|
| What do I need to do before the Bid Deadline to prepare to place a bid? |
|
The 30 to 45 days leading up to the Bid Deadline is the time for you to download and review the
available property information, disclosures and documents from the website; ask the Property Contact
any questions you may have; tour the property; conduct your due diligence; and determine your initial
bid amount.
|
|
| Can I buy more than one property? |
|
Yes. Generally, if you want to bid on multiple properties within the same auction event, you need to
submit a separate Bid Form and Bid Deposit for each property you intend to purchase. In the event you
are not the Highest Bidder on all of the properties you bid on, your Bid Deposit will be returned to
you, less a small administrative fee, for the properties you do not purchase. Please see the Terms and
Conditions of Sale for further details.
|
|
| Can I visit and inspect the property? |
|
Yes. Contact the Property Representative/Contact (whose contact information is posted on the Property
Profile page) for the property you are interested in, and he or she will arrange a property tour for you.
Before scheduling a property tour, we suggest you first download and thoroughly review all of the
documents, disclosures and other detailed information in the Documents section on the Property Profile page.
|
|
| How can I be assured that the property that I am purchasing is in sound condition? |
|
You are encouraged to download and thoroughly review all of the documents, disclosures, maps, images and
other property-specific information from the Documents section of the Property Profile page. You are also
encouraged to personally conduct a thorough physical inspection of the property. You may desire to employ
a professional inspection service to inspect the property on your behalf and evaluate its condition. You
may also want to review all available third-party documents, information and government records.
|
|
| Will I be guaranteed clear title on any property that I purchase? |
|
Title to property auctioned on LFC.com is conveyed to the buyer free and clear of any and all liens and/or
encumbrances, including taxes, assessments and lawsuits. Upon closing, a title insurance company will issue
a title insurance policy that will insure that the property is free and clear of any and all liens and/or
encumbrances. If the Seller cannot deliver clear title to the property, you will be refunded in full any and
all fees and/or deposits that you have tendered and you will be under no further obligation to purchase the
property.
|
|
| What is a Buyer's Premium? |
|
A Buyer's Premium is a fee that is paid by the Buyer to the Seller’s agent at the close of a sale. Please see
the Terms and Conditions of Sale for further details.
|
|
| Who handles the property sale? |
|
All property sales are conducted by real estate professionals who represent the Seller and are licensed in the
state where the property is located.
|
|
| Can I place a bid on a property subject to a contingency? |
|
Yes, a contingency may be noted on the Bid Form that you submit. However, bidders must understand that most
Sellers choose the auction format because they are looking for a non-contingent sale. Therefore, the Seller
reserves the right to evaluate all submitted bids and declare a Highest Bidder based on a number of factors
including, but not limited to, the amount of the bid, contingencies, if any, and the Seller’s perceived
capability of the bidder to close the sale. Therefore, the Seller may choose to reject a bid with a contingency,
even if it is the Highest Bid.
|
|
| Will the Seller accept an offer before the Bid Deadline? |
|
No. While the Seller reserves the right to change a property’s Terms and Conditions of Sale or cancel the auction
event entirely, no property will be sold prior to the Bid Deadline that is published on its Property Profile page.
|
|
| Can I make an offer directly to the Property Contact to purchase a property? |
|
No. The only way to purchase a property is to submit a bid and be declared the Highest Bidder at the end of the
auction. Please see the Terms and Conditions of Sale in the Documents section of the Property Profile page for
further details.
|
|
| If my bid is accepted by the Seller, may I then change it or cancel the transaction? |
|
No. In the event you cancel a transaction after your High Bid has been accepted by the Seller, you may be asked
to forfeit your Bid Deposit. Placing a bid for a property is a legal offer to purchase and, therefore, both the
Buyer and Seller have certain legal rights and obligations. Please consult your legal counsel for any rights and
obligations that you may incur as the Highest Bidder. You are strongly advised not to place a bid for a
property unless you intend to honor it.
|
|
| I am a licensed real estate professional. How can I earn a commission? |
|
Buyer’s broker participation is welcome. Real estate agents and/or brokers must first register as a Broker/Agent
on the website. Upon registering, Broker/Agents will receive an LFC Broker Registration Number via email. Your
name and Broker Registration Number must be on the Bid Form for the property you are representing when your Buyer
submits their initial bid. You may not earn a commission if you are the Buyer of the property. Please see the
Broker Participation document located in the Documents section of the Property Profile page for further details.
|
|
| Bidder Questions |
|
| How do I place a bid on a property? |
|
You must first register for an LFC Full Account, which is a free and simple, three-minute process. You will then
be able to download and review the Terms and Conditions of Sale, specific property documents and disclosures, as
well as the Bid Form and Wiring Instructions. To place a bid on a property, download and complete the Bid Form and
submit it, along with the required Bid Deposit (stated in the Terms and Conditions of Sale) before the Bid Deadline.
Bid Deposits may be submitted via mail, wire transfer or direct deposit. For more details, please see the “How to Bid”
page.
|
|
| Am I required to submit any money with my bid? |
|
Yes. A Bid Deposit must be submitted with your initial bid on a completed Bid Form. In the event you are declared the
Highest Bidder, your Bid Deposit will be applied toward your Purchase Deposit. For details regarding the bidding
procedure for a specific property, please review the Terms and Conditions of Sale in the Documents section of the
Property Profile page.
|
|
| I’ve submitted my Bid Form and Bid Deposit, what happens next? |
|
Most auctions on LFC.com begin in a Sealed Bid format, where a single Bid Form and Bid Deposit are submitted by each
prospective buyer. During a Sealed Bid auction, bids are undisclosed and not displayed on the website. At any time,
however, the Seller may elect to transition the auction to an Online Auction format where electronic bids may be
submitted via the Internet by clicking the “Bid Now” button on the Property Profile page. Once an Online Auction has
been declared, bidders may view all submitted bids in the Bid History on the Property Profile page, and may continue
to submit subsequent Online Bids until the Bid Deadline.
|
|
| How can I be assured that my Bid Deposit and/or Purchase Deposit funds are safe? |
All Bid Deposit and Purchase Deposit monies are held in a First Republic Escrow Corporation trust account. First
Republic Escrow Corporation is licensed by the California Department of Corporations and bonded by the Hartford
Insurance Company.
The California Department of Corporations maintains a website where interested parties may check the status of all
escrow companies under its jurisdiction. You may access the First Republic Escrow Corporation information on the
California Department of Corporations website by clicking on the following link: View Escrow License. In the
alternative, you may call the Department’s Consumer Services Office at 866-275-2677.
|
|
| How do I know if someone else has submitted a higher bid? |
|
In a Sealed Bid auction, you will not know if someone has submitted a higher bid than you. However, in an
Online Auction, you will receive an email confirmation each time you place an Online Bid for a property,
and will receive an email notification if someone submits a higher Online Bid for the same property. You
can also monitor and review all bids in the Bid History section of the Property Profile page.
|
|
| What happens if I am the High Bidder at the end of the auction? |
|
Once you have received notification that you are the successful High Bidder, you will have two (2) business
days to submit an executed Purchase and Sale Agreement and the additional earnest money funds required (the
difference between your Bid Deposit and the Purchase Deposit). Your initial Bid Deposit, less a $250 Escrow
administrative fee, shall be credited toward your Purchase Deposit. Please see both the Purchase and Sale
Agreement and the Terms and Conditions of Sale for further details.
|
|
| Once I am declared the successful High Bidder, when can I take possession of the property? |
|
Upon notification that the deed of conveyance has been recorded, the Property Contact will provide you with
access to the property. Please see the Terms and Conditions of Sale in the Documents section of the Property
Profile page for further details.
|
|
| What happens if I am not the successful High Bidder? |
|
If you are not the successful High Bidder, your Bid Deposit, less a fifty dollar ($50) Escrow administrative fee,
shall be returned to you following receipt by the Escrow Agent of a completed and executed Return of Deposit
Verification (RDV) form within fifteen (15) business days after completion of the auction. All Bid Deposit funds
must be cleared prior to disbursement by the Escrow Agent. If you want your Bid Deposit funds wired to you, there
is a fifteen dollar ($15) fee to do so. Please see the Terms and Conditions of Sale for further details.
|
|
| Website Questions |
|
| Do I have to provide any personal information to view images and general property information on LFC.com? |
|
No. Anyone can view images and general property information on LFC.com without registering and providing any
personal information. However, in order to track properties and/or auction events you are interested in and
receive auction updates, you must register for a Quick Account, by providing an email address and password.
In order to gain full access to property-specific downloadable documents and place a bid, you must register
for a Full Account, which is a free and simple, three-minute process.
|
|
| Once I register, who will have access to my personal information? |
|
LFC treats all user information with the utmost confidentiality and respects the privacy of its users. If you
download documents from LFC.com or place a bid, the Seller and Seller’s broker may have access to your user
information. At no time will any user information be sold, rented or otherwise disclosed to third parties except
to those specifically involved in your purchase transaction. Please see LFC.com’s Privacy Policy for further details.
|
|
| What is a Minimum Bid? |
|
The Minimum Bid amount is the least amount that you may initially bid for a property. The Minimum Bid amount for
each property is indicated on its Property Profile page.
|
|
| What is a Minimum Bid Increment? |
|
The Minimum Bid Increment is the minimum amount that you must increase your bid above the current high bid in order
to become the new High Bidder. The Minimum Bid Increment for a property is indicated on its Property Profile page.
|
|
| What is a Bid Deadline? |
|
The Bid Deadline is the last point in time that your bid may be received to be considered valid. The Bid Deadline
for a property may be found on its Property Profile page.
|
|
| What is the Suggested Value? |
|
The Seller has provided LFC with a suggested value that it believes its property is worth. The Suggested Value for
each property may be found on its Property Profile page.
|
|
| What is an “Unpublished Reserve?” |
|
Many of the properties for auction on LFC.com have an “Unpublished Reserve,” which means that the Seller is not
obligated to accept the highest bid received for a property, unless it meets or exceeds an undisclosed “release”
or “reserve” price that the Seller has determined before the beginning of the auction. However, the very fact that
the Seller has placed their property in the auction indicates that they are motivated to sell.
|
|
|
|
| What is a “Sealed Bid?” |
|
Most auctions on LFC.com begin in a “Sealed Bid” format, meaning that the bids submitted
are undisclosed to the public and not displayed on the website. However, at any time during
the auction before the Bid Deadline, the Seller reserves the right to transition the auction
from a Sealed Bid format to an Online Auction format. When this occurs, the highest Sealed
Bid is made public and published in the Bid History on the Property Profile page. From that
point forward, bidders that have submitted their Bid Deposit and Bid Form may submit subsequent
online bids on the property by clicking the “Bid Now” button on the Property Profile page,
anytime before the Bid Deadline. Whether an auction is Sealed Bid or Online, bidders must submit
their initial bid on a Bid Form along with the required Bid Deposit. Please see the Terms and
Conditions of Sale, located in the Documents section on the Property Profile page, for further
details.
|
|
|
|
|
|
| What is Last Call®? |
|
Last Call® is a feature that automatically extends the Bid Deadline when an online bid is submitted
during the 24-hour period before the current/published Bid Deadline. If Last Call is invoked, a
Last Call icon will appear on the Property Profile page and all previous bidders and interested
parties will receive an email notification explaining the Last Call process. The Bid Deadline will
continue to extend in this manner until no further bids are received. At any time, the Seller may elect
to transition Last Call, into an hour-to-hour format, changing the Bid Deadline extensions from 24-hour
increments to 1-hour increments. Please see the Terms and Conditions of Sale, located in the Documents
section on the Property Profile page, for further details about Last Call.
|
|
|
|
|
|
| What is an “Absolute Auction?” |
|
For properties that are for “Absolute Auction,” the Seller is obligated to accept the highest bid,
regardless of price. There is no reserve or release price. Absolute Auctions are prominently identified
with a purple “Absolute Auction” icon. Please see the Terms and Conditions of Sale, located in the
Documents section on the Property Profile page, for further details.
|
|
|
|
|
|
| What is an “Online Auction?” |
Most auctions on LFC.com begin in a “Sealed Bid” format, and only transition to an “Online Auction”
format at the Seller’s discretion, which can occur at any given time during the auction campaign.
When this occurs, the highest Sealed Bid is made public and published in the Bid History on the
Property Profile page. From that point forward, bidders who have submitted their Bid Deposit and Bid
Form may submit subsequent online bids on the property by clicking the “Bid Now” button on the Property
Profile page, anytime before the Bid Deadline.
Some of the properties may also begin in an “Online Auction” format. In this case, bids will be made
public and published in the Bid History on the Property Profile page of that particular property from
the first submitted/received Bid Deposit and Bid Form. Once submitting their initial Bid Form and Bid
Deposit, bidders may place subsequent online bids by clicking the “Bid Now” button on the Property Profile
page, anytime before the Bid Deadline.
Please see the Terms and Conditions of Sale, located in the Documents section on the Property Profile page,
for further details.
|
|
|
|
|
|
| What is a “Post-Auction Sale?” |
|
A “Post-Auction Sale” consists of unsold auction properties and additional property supplied by the
Seller that is available for purchase on a “first come, first served” basis, at prices set by the
Seller that are comparable to the high bids received in the auction.
|
|
|
|
| If you have any additional questions, please contact us at (800) 966-0660 |
|
| Back to top of page |
|
