AUCTION TERMS AND CONDITIONS 1. PROPERTY TO BE AUCTIONED: 923 9th Ave SE Decatur, AL 35601 2. SELLER(S): Estate of Andy R. Sittason 3. DATE AND LOCATION OF AUCTION: ONLINE @ www.AlabamaAuction.com 4. TERMS OF SALE: BELOW Real Estate: A ten percent (10%) buyer’s premium will be charged and added to the Buyer’s bid price to determine the purchase price for all property sold at auction. The purchase price of the property, including the buyer’s premium, will be payable in cash or certified funds as follows: (a) earnest money based on ten percent (10%) of the purchase price will be payable on the date of the auction; and (b) the balance of the purchase price will be payable at the Closing of the sales transaction. The following is an outline of the terms of sale: OUTLINE OF TERMS OF SALE High Bid Amount $___________________ Buyers Premium (10%)+ $___________________ Purchase Price $___________________ Earnest Money (10%)- $___________________ Balance Due At Closing $___________________ The Buyer’s obligation to close the sales transaction will not be contingent on Buyer’s ability to obtain financing. The earnest money will be nonrefundable, except as otherwise provided in the Real Estate Sales Contract, hereinafter described. If you are the High Bidder on any of the property offered for sale today, you will sign a contract at the conclusion of today’s auction. 5. CONDUCT OF AUCTION. All announcements made from the Auction Block/Online will take precedence over any previous written or oral statements. Hampton Auction & Realty reserves the right to announce additional Terms and Conditions of the auction and sale prior to or during the course of the auction. All bidders will be bound by announcements made at the auction, even though a bidder may not have actually heard the announcements. The Real Estate Sales Contract for the purchase and sale of the property shall represent the final terms of sale. In the event of a dispute over any matter at the Auction, Hampton Auction & Realty shall have the absolute and sole right to make the final decision to resolve the dispute and will also have the right to either accept or reject the final bids or reopen the bidding. Increments of bidding are at the direction of Hampton Auction & Realty and the Auctioneer conducting the auction. Hampton Auction & Realty reserves the right to accept absentee bids in advance and place those bids during the course of bidding. Hampton Auction & Realty reserves the right to accept phone bids and/or absentee bids (arrangements must be made prior to auction date). Auctioneer reserves the right to cancel, postpone or withdraw the property before or up to the start of the auction. The auctioneer reserves the right to offer this property in any manner and reserves the right to sell the property in any manner he so desires up to the start of the auction. The auction does not start until the auctioneer accepts the first bid, day of the auction. 6. ORDER OF AUCTION. The property will be sold as a whole. 7. BACK-UP BIDS. An unsuccessful bidder may make a back-up bid to purchase the property in the event of default by the high bidder. A Back-up Bidder Form for the purpose will be provided by Hampton Auction & Realty, through its representatives at the auction, at request. 8. CLOSING. The sale of the property shall be closed and the deed delivered on or before __________. The closing will be held at the office of closing attorney of the seller's choice. 9. CLOSING COSTS AND PRORATIONS. All costs associated with the Closing of the transaction evidenced hereby shall be paid by the buyer. Ad valorem property taxes for the then-current tax will be pro-rated between the Seller and Buyer as of the date of the Closing. All property taxes applicable to the property for prior tax years remaining unpaid at the time of the Closing shall be paid in full by Seller prior to or at the time of the Closing. Any tax arising from a change in use of the property, which results in rollback tax shall be borne by Buyer. 10. CONDITION OF PROPERTY. The property shall be sold “AS IS, WHERE IS” and “WITH ALL FAULTS”. Seller and Hampton Auction & Realty make no representations or warranties, express or implied, regarding the fitness, suitability or condition (environmental, structural or otherwise) of the property. Seller and Hampton Auction & Realty shall have no duty, liability, obligation and/or responsibility to Buyer or any other person or entity regarding the fitness, suitability or condition (environmental, structural or otherwise) of the property. Seller disclaims any and all warranties as to the status of mineral rights affecting the property, environmental conditions, availability of utilities, zoning, accesses to the property, or quantity of land in the property. 11. PROPERTY INSPECTION. It is the Buyer’s responsibility to inspect the property prior to the auction. Buyers must rely on their own information, judgment, inspections and any public records concerning the property. The failure of the Buyer to be fully and adequately informed as to the condition of the property will not constitute grounds for adjustment of the price or withdrawal of the buyer’s bid for the property, or return of any earnest money paid in connection with the sale of the property. 12. CONVEYANCE. Seller shall convey to the Buyer of any property sold at auction good and marketable fee simple title to such property by Statutory Warranty Deed subject only to (i) current city, state and county ad valorem taxes not yet due and payable; (ii) easements for the installation or maintenance of public utilities serving the property; (iii) easements and restrictions of record; (iv) rights of way for public roads; (v) subdivision regulations and zoning ordinances of applicable governmental entities; (vi) matters of survey, and (vii) such other matters, if any, as may be acceptable to the Buyer, all of which items collectively are the “Permitted Exceptions”. 13. TITLE INSURANCE. Title Insurance will be at the Buyer’s expense. 14. DISCLAIMER. Seller and Hampton Auction & Realty (Or Hampton Auction & Realty associated salespersons and the closing attorneys) make no representation relative to (a) the legal and tax consequences of the purchase or ownership of the property; (b) the availability of utilities or sewer service; (c) the environmental status of the property; (d) the investment or resale value of the property; (e) the quantity of land comprising the property; (f) the status of the title of property; (g) the status of mineral rights to the property: or (h) matters of survey affecting the property. 15. REAL ESTATE SALES CONTRACT. Real estate sales transactions arising out of the auction shall be evidenced and governed by the Real Estate Sales Contract attached hereto, which shall be executed by Seller and the Buyer of the property at the auction. The terms of the Real Estate Sales Contract are controlling in the event of any perceived inconsistency between its terms and any statements in these Auction Terms and Conditions or any advertisement or other material concerning the property or the auction. It is therefore recommended that all bidders carefully review the attached Real Estate Sales Contract before the commencement of the auction. 16. BIDDER REGISTRATION. All bidders must register with Hampton Auction & Realty before the auction and receive a bidder registration number and a copy of these Auction Terms and Conditions. 17. BROKER PARTICIPATION. A qualified, duly licensed Alabama real estate broker whose prospect is the successful bidder at the auction, and who closes the sale of the property, will be entitled to receive a commission based on 2% of the prospect’s written opening bid for the property, excluding the buyer’s premium, and 1% of the difference between the prospect’s written opening bid and the prospect’s successful bid for the property, also excluding the buyer’s premium. To qualify for the commission, a broker must first register the prospect, using the attached “BROKER PARTICIPATION REGISTRATION FORM” , printed on the broker’s letterhead, mailed, faxed or hand delivered to Hampton Auction & Realty . The registration must include the signatures of the broker and prospect, the broker’s real estate license number, and the prospect opening bid for the property. The registration must be received by United Country at least 48 hours prior to commencement of the auction. UNDER NO CIRCUMSTANCES WILL BROKER REGISTRATION BE ALLOWED ON THE DAY OF THE AUCTION. In addition, to qualify for a commission, the broker must attend the auction with prospect, must have shown the property to the prospect before the auction, and the sale of the property to prospect must close. A BROKER CANNOT ACT AS A PRINCIPAL AND BROKER ON THE SAME TRANSACTION. 18. AGENCY. Hampton Auction & Realty is acting exclusively as an agent for the Seller. Hampton Auction & Realty Is not acting as an agent for the buyer with respect to any transaction contemplated under these terms and conditions. Hampton Auction & Realty has the exclusive right to list and sell the property put up for sale at the auction. All negotiations concerning the sale of the property must be conducted through Hampton Auction & Realty. ***LEAD BASE PAINT DISCLOSURE*** INFORMATION ON LEAD-BASED PAINT AND LEAD BASED PAINT HAZARDS SELLER’S DISCLOSURE for property at _________________________________________________________ Lead Warning Statement Every purchaser of any interest in residential real property on which a residential dwelling was built prior to 1978 is notified that such property may present exposure to lead from lead-based paint that may place young children at risk of developing lead poisoning. Lead poisoning in young children may produce permanent neurological damage, including learning disabilities, reduced intelligence quotient, behavioral problems, and impaired memory. Lead poisoning also poses a particular risk to pregnant women. The seller of any interest in residential real property is required to provide the buyer with any information on lead-based paint hazards from risk assessments or inspections in the seller’s possession and notify the buyer of any known lead-based paint hazards. A risk assessment or inspection for possible lead-based paint hazards is recommended prior to purchase. Seller’s Disclosure (a) ________ ________ Presence of lead-based paint and/or lead based paint hazards (check one below): (initial) ? Known lead-based paint and/or lead-based paint hazards are present in the housing (explain). _________________________________________________________________________________ ? Seller has no knowledge of lead-based paint and/or lead-based paint hazards in the housing. (b) ________ __x______ Records and reports available to the seller (check one below): (initial) ? Seller has provided the purchaser with all available records and reports pertaining to lead-based paint and/or lead-based paint hazards in the housing (list documents below). _________________________________________________________________________________ ? Seller has no reports or records pertaining to lead-based paint and/or lead-based paint hazards in the housing. x Purchaser’s Acknowledgement (c) ________ ________ Purchaser has received copies of all information listed above. (initial) (d) ________ ________ Purchaser has received the pamphlet Protect Your Family from Lead in Your Home. (initial) (e) ________ ________ Purchaser has (check one below): (initial) ? Received a 10-day opportunity (or mutually agreed upon period) to conduct a risk assessment or inspection for the presence of lead-based paint and/or lead-based paint hazards; --OR-- ? Waived the opportunity to conduct a risk assessment or inspection for the presence of lead-based paint and/or lead-based paint hazards. FORM LB Paint Page 1 of 2 (Revised 04-14) THE USE OF THIS FORM BY ANYONE OTHER THAN A REALTOR® MEMBER IS STRICTLY PROHIBITED. COPYRIGHT Huntsville Area Association of REALTORS®