| What do I need to do before the Bid Deadline to prepare to place a bid? |
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The 30 to 45 days leading up to the Bid Deadline is the time for you to ask the Auction Manager
or Property Manager any questions you may have, visit the properties you are interested in,
conduct your due diligence using the documents available on the Freedom Realty Exchange website,
and determine what your bid amount will be. This is also the time for you to secure financing, if
desired. Bidders may either contact Freedom Realty Exchange’s preferred lender to obtain a
prequalification letter, or prequalify through their own lender.
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| How do I place a bid for a property? |
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You must first register on the Freedom Realty Exchange website, 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 you must download and complete the Bid Form and submit it along with the
appropriate Bid Deposit amount (stated in the “Terms and Conditions of Sale”) before the
Bid Deadline. Bid Deposits may be submitted via mail or wire transfer.
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| Am I required to submit any money with my bid? |
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Yes. A Bid Deposit must be submitted with your initial Sealed Bid, along with a Bid Form. If you are
declared the successful High Bidder, your Bid Deposit will be applied towards your Purchase Deposit.
For details regarding the bidding procedure for a specific property, download the “Terms and
Conditions of Sale” document on the Property Profile page.
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| I’ve submitted my Bid Form and Bid Deposit, what happens next? |
Most Freedom Realty Exchange auctions 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 on the “Bid Now” button on the Property
Profile page. Once an Online Auction has been declared, bidders can view all submitted bids, by clicking
on the “Bid History” button on the Property Profile page. Bidders may continue to submit subsequent Online
Bids until the Bid Deadline.
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| How do I know if someone else has submitted a higher Online Bid? |
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Each time you place an Online Bid for a property, you will receive an email confirmation. If someone else
submits a higher Online Bid for the same property, you will be notified via email that you have been “outbid."
You can also monitor and review all bids by clicking on the “Bid History” button on the Property Profile page.
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| How can I be assured that my Bid Deposit and/or Purchase Deposit 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.
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| What is a Minimum Bid? |
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The Minimum Bid amount is the least amount that you may initially bid for a property. The Minimum
Bid amount for a property is indicated on its Property Profile page.
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| What is a Minimum Bid Increment? |
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The Minimum Bid Increment is the minimum amount that you must increase your bid above the current
high bid to become the new High Bidder. The Minimum Bid Increment for a property is indicated on
its Property Profile page.
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| What is a Bid Deadline? |
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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.
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| What is a “Sealed Bid?” |
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Most auctions on the web site are sealed bids. For these auctions the bidding activity is not made
public. The seller has the right to change the form of the auction from a “Sealed Bid” Auction to an
Online Auction, if this happens then the bidding is made public. Please see the “Terms and Conditions
of Sale” for further details for auctions of interest to you. If you wish to place a bid on a property
the first bid will be on a sealed bid form with a bid deposit.
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| What is “Last Call?” |
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“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.”
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| What is an “Absolute Auction?” |
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For properties that are “Absolute Auctions” the seller is obligated to accept the highest bid of any
amount, and there is no reserve price. Absolute Auctions are prominently identified. Please see the
“Terms and Conditions of Sale” of a particular auction event for further details about
“Absolute Auctions.”
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| What is an “Online Auction?” |
Most of our auctions 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 that have submitted their Bid Deposit and Bid Form may submit subsequent online
bids on the property by clicking on the “Bid Now” button on the Property Profile page, at 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 on the “Bid Now” button, at anytime before the Bid Deadline.
Please see the “Terms and Conditions of Sale” document in a specific auction event for further details.
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| What is an “Unpublished Reserve?” |
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Many of the properties on this web site have an “Unpublished Reserve.” This means that the seller is
not obligated to accept the highest bid received for a property. However the very fact that the Seller
has placed their property in the auction indicates that they are motivated to sell.
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| Who handles the property sale? |
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All property sales are conducted by real estate professionals who represent the Seller and are licensed in
the state where the property is located.
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| Is financing offered? |
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Some of our auctions offer financing through our preferred lender, while others do not. Go to the website
or view the “Terms and Conditions of Sale” document in the Documents section of the Property Profile
page for further details.
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| Can I place a bid on a property subject to a contingency? |
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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 then choose the High 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.
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| What is a Buyer's Premium? |
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A Buyer's Premium is a fee that is paid by the successful High Bidder (Buyer) to the Seller’s agent at the close of
a sale. Please see the Terms and Conditions of Sale document for further details.
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| If my bid is accepted by the Seller, may I then change it or cancel the transaction? |
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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 a High Bidder. You are strongly advised not to place a bid for a property unless you
intend to honor it.
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| What happens once I have become the successful High Bidder? |
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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.
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| Once I am declared the Winning Bidder, when can I take possession of the property? |
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Upon notification that the deed of conveyance has been recorded, the Property Representative will provide you
with access to the property. Please see the “Terms and Conditions of Sale” document on the Property
Profile page for further details.
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| What happens if I am not the successful High Bidder? |
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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.
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| I am a licensed real estate professional. How can I earn a commission? |
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Buyer’s broker participation is welcome. Real estate agents and/or brokers must first register on the
Freedom Realty Exchange website as a Broker/Agent on the User Agreement. You will then be given an FRE Broker
Registration Number via email. Your 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 on the Property Profile page for further details.
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| If you have any additional questions, please contact us at (800) 966-0660 |
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| Revised 3/18/08 |
