The 6 steps to purchasing a Court Ordered Sale
- Buyer or Buyer's agent will present an offer to the REALTOR® representing the Seller (Bank or Finance company), the Seller's REALTOR® will negotiate on behalf of the Seller just like on a typical Real Estate Listing (at this point the Buyer can have Subjects on the offer such as financing, inspection report, etc)
- After the Buyer has done their due diligence and removes all the Subjects (making the offer unconditional) a court date will be booked (typically 2-3 weeks)
- Once the court date is scheduled, the local Real Estate offices are made aware of the date
- On the court date the Buyers or REALTOR® representing the Buyers must have an unconditionalContract of Purchase and Sale (no subjects), a deposit (bank draft) for the amount which the Seller has requested, and a signed copy of the Schedule 'A' (a disclosure written by the Seller typically making the Buyer aware that they warranty nothing about the property and it is to be sold 'as is, where is' )
THE MOST TYPICALLY MISUNDERSTOOD part of the process is what happens at court:
- If the Buyer who made the initial offer is the only interested party who shows up to the court proceedings, the judge will most likely approve the purchase and the Buyer is now the new owner of the property (usually takes 2 weeks for the court to process documents and register the property in the Buyers name, after which the new owners can take possession)
- If more than one potential Buyer arrives at court, with all their due diligence completed (bank draft, schedule 'A', unconditional offer) the judge will ask all parties to submit their BEST offer. The judge will most likely award the home to whomever he/she considers to have the BEST offer. Typically theBEST offer is the highest dollar figure however this decision is at the Judge's discretion.
*There is no auction bidding, there is one chance to submit the top dollar you are willing to pay for the property*
I hope this was helpful Kelsey, don't hesitate to call or email if you or anyone of your friends have morequestions or would like to request any Real Estate information.
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