Q: Purchasing an auction property. We had 5% buyer premium on the line and house did not appraise. Can we get premium back?
We are in a contract to purchase a bank owned auction property. We had to put down a 5% buyer premium on the house. The house appraised for $10,000 under our winning bid. If the bank is not willing to let go for the appraised price and we have to walk away are we able to get our 5% buyer's premium back? Thanks.
A: When dealing with a private property auction company be prepared to engage with a more complicated sales contract. They are very often "boiler-plate" and favorable to the seller. From the facts as presented, the contract provisions will prevail. Usually, there is very little room for refunds. A competent real estate attorney should review your document further. It is also better to have an attorney draft or review the sales auction contract before hand, and not after the fact. See www.provenresource.com/blog for more information on property auctions.
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