INTRODUCTION

Thank you for your interest in the sealed bid auction for 4482 Columbia Blvd, Juneau Alaska (see map).  The following should provide the information necessary for you to understand the procedures that will be used to administer the auction.  There is also substantial information we are enclosing regarding the property itself.  HOWEVER, you should undertake a thorough investigation on your own prior to bidding to assure the suitability of the property for your intended use.  We will schedule times for prospective bidders to preview the property.  EACH PROSPECTIVE BIDDER ASSUMES ALL RISK ASSOCIATED WITH ANY SUCH INSPECTION.

The Seller has chosen the sealed bid procedure as a means to sell this property.  It is the Seller’s choice, based on their belief that such a procedure will provide the most expedient means of obtaining the best net proceeds at sale.  It is the Seller’s intent to close the transaction in October 2010.

The information that follows sets forth details on the auction and the property, beginning with the section titled "Bid Procedures."  If you are the successful bidder, the procedures for closing the transaction are set fort in the next section, "Closing the Sale."  The final section contains information about the property itself, and is titled "Property Description."

Please review carefully the information we are providing.  The transaction shall be closed at Alaska Escrow and Title, who shall also provide the title insurance.  Please feel free to call them if you have questions.  You are also free to inspect the property at a time to be scheduled. 

BID PROCEDURES

1. This sale shall be administered as a sealed bid auction.  There will not be an opportunity to raise your bid after the bid opening.  The procedures set forth herein should be followed.  If you have questions, please contact John Williams at Juneau Real Estate either directly (if you’re not working through another real estate licensee) or through your chosen real estate licensee.  If you work directly with John, you will be a customer – not a client – and will receive the services due anyone receiving “specific assistance without representation.”
2. A specially prepared “Agreement to Purchase and Earnest Money Receipt” form (the Bid Form) is available for download.  Review it carefully.  The highlighted areas should be completed in detail.  The buyer will also be required to acknowledge receipt of the State of Alaska Residential Real Property Transfer Disclosure Statement by initialing and/or signing where highlighted on the provided form.  Also complete the Purchase Disclosure of Information on Lead-Based Paint.  Completion and submittal of these three forms shall be the only means to submit a bid.  Any bid submitted by any other means may be disqualified at the discretion of the Seller.
3. All bids should be delivered to Juneau Real Estate, Jordan Creek Center, 8800 Glacier Highway, Suite 231, Juneau, AK  99801.  The deadline for receipt of the bids shall be 5:00 PM, Friday, September 24, 2010.  Seller is under no obligation to consider any bids received thereafter.
4. Note that the closing cost components of the Earnest Money Agreement have been completed.  These may not be changed.  Seller is paying only Owner’s title insurance, any Assessments of record, and ½ of the Escrow Closing fee.    The successful bidder will pay any and all other closing costs.
5. The Seller is not providing any financing for the sale.  Any financing required must be arranged in advance.  Any bid that requires any portion of the purchase price to be carried as a note by the Seller will be disqualified.  No offers will be considered that require the subject property to be financed with a conventional home mortgage in order to close the transaction.  Any bid that requires a classic form of home mortgage will automatically be disqualified, (as distinguished from an in-house bank loan, which will be allowed with proper documentation).
6.  Each bidder must submit proof of ability to pay the bid amount at closing.  The form of proof may be photocopies of bidder’s most recent statement of financial account(s) demonstrating sufficient liquid funds, or a bank letter indicating that said financial institution has qualified said bidder for a loan in sufficient amount to close the purchase.  Any costs of financing are strictly the bidders’. Closing will occur at a mutually agreeable time in September or October 2010.
7. SELLER RESERVES THE RIGHT TO REJECT ANY AND ALL OFFERS.
8. If it is in the Seller’s interest, it may allow minor modifications of the procedures set forth above, as long as such deviations do not create an unfair advantage for one bidder over another.  The bids will be opened in private, reviewed for completeness, and the apparent winning bid will be kept confidential.  The apparent winning bidder will be contacted as soon as possible after review of all bids.
9. No claim will be considered for allowance, adjustment or rescission based upon failure of the property to correspond to any particular expectation or standard by the purchaser.
10. Title insurance is available, insuring the title of such property to be in fee simple, subject to no encumbrances except for current taxes and assessments, easements, rights-of-way, and printed exceptions in the standard insurance policy.  A copy of the title Listing Package from Alaska Escrow & Title is enclosed and should be inspected prior to bid submittal.  It contains an As-Built survey for the property.
11. The property is sold AS IS, with any and all faults.  Bidders should familiarize themselves with the property and all supporting documentation carefully and make their own evaluation.
12. Seller has the right to postpone or cancel the auction in whole or in part, in its sole discretion, and to modify or add any terms and conditions of sale and to announce such modifications or additional terms and conditions at a time and in a manner as to reasonably assure all interested parties shall receive such announcements.
13. This offer is void where prohibited.  Auction packets and these additional terms and conditions will not be mailed to residents of any state in which this offering is not in compliance with the real estate laws or other laws of that state.

CLOSING THE SALE

1. If you are the successful bidder, you will be notified to provide a deposit equal to 5% of your bid amount.  The funds should be presented to Juneau Real Estate in the form of a cashier’s check or the equivalent.  The deposit/earnest money will be placed in the trust account of Juneau Real Estate.  It will be counted as a part of your purchase payment.  THE DEPOSIT IS NON-REFUNDABLE EXCEPT IN THE EVENT OF A DEFAULT ON THE PART OF THE SELLER.  Broker will hold the deposit in trust until such time as title has transferred to Buyer.
2. Deposits are due within 24 hours of notification of making the apparent winning bid.  If a deposit is not made timely, that bid may be disqualified, and the next high bidder notified.
3. Upon receipt of the deposit, Seller shall execute the Earnest Money Agreement to Purchase form, and a copy will be delivered to the successful bidder(s).  If a bidder cannot be present to receipt the executed sale agreement, (s)he should provide notice of where the executed agreement may be delivered (via fax if necessary) in order to provide timely delivery.
4. Upon receipt of “good” funds for deposit in the JRE trust account as described above, successful bidder(s) will be advised to contact an escrow officer at Alaska Escrow and Title.  At that time, the escrow officer will interview the bidder to determine bidder’s source(s) of funds to close and will establish a closing time and date for the bidder to complete the transaction.