MASTER COMMISSIONER TERMS AND CONDITIONS OF AUCTION The auction will be a straight auction with the highest bidder being the successful purchaser free and clear of all claims of the parties named in the lawsuit. It will be an absolute sale with 2 exceptions: First, if the property fails to bring 2/3 of the appraised value the owner of the property has the right of redemption, meaning that, for a period of 6 months the owner has to option to buy back the property for the amount of the bid plus 10% per annum. Second, if the IRS is involved with the sale of the property, they have the right to repurchase the property from the successful bidder for a period of 120 days following today. There is no requirement that the property bring a certain amount. A 6% Buyer's Premium will be added to the high bid to determine the full contract purchase price. At the conclusion of the sale, the purchaser has the option of either (1) paying the purchase price in full at the conclusion of the sale or (2) paying at least 10% of the purchase price with the right to pay the balance within thirty (30) days, said balance bearing interest at the rate of 7.85% per annum from the date until paid, having the full force and effect of a judgment and retaining a lien on the property. If the purchaser elects to pay less than the full price, they must sign a bond and provide a surety (as set forth below) that has been pre-approved by the Master Commissioner prior to the day of the Sale. All payments must be made by check payable to "Master Commissioner Henderson Circuit Court", or wired funds. NO CASH WILL BE ACCEPTED. If a purchaser pays less than the full amount of the purchase price, he must sign a bond to pay the balance and provide a surety for that bond. You must contact the Master Commissioner's Office at (270) 830-7881 and obtain approval of any surety prior to the date of the sale. If you fail to do so, you will be required to pay the purchase price in full. A surety may be a person, bank, or other entity who agrees unconditionally to pay the balance due should the purchaser, for whatever reason, fail to pay in full within thirty (30) days. The easiest manner to be "approved" is to obtain an irrevocable Letter of Credit from a bank stating the maximum amount secured and provide it prior to the date of sale. A loan commitment is not sufficient, it must be a Letter of Credit. Other person(s) or entities, who are Kentucky residents, may also act as sureties. In order to do so, said person must furnish the Master Commissioner a sworn financial statement which shows a net worth of at least 2 ½ times the sale price. The Master Commissioner has the right and discretion to reject any proposed surety for any reason. If a bond is utilized, it will bear interest on the unpaid balance at the rate the judgment bears, from the date of sale until paid in full, and will have the full force and effect of a judgment. In the event of an exception or objection to the sale, interest will be abated until ruled upon by the Court. A claim for delinquent taxes does not abate interest. Neither the Plaintiff, Master Commissioner, Auctioneer, nor the Court warrant or guarantee in any manner that the title is free and clear of encumbrances or defects. The purchaser or their attorney have 10 days after the sale to ascertain whether such conditions exist and to file any objections with the Court. If encumbrances or defects are found, the Purchaser can request that the sale be set aside. If objections are not filed within 10 days, the Purchaser will be stuck with the property and all of it's problems. It is STRONGLY ADVISED that the Purchaser contact an attorney and have a title examination done as quickly as possible. The property is being sold "AS IS". The condition of the property is not warranted by the Court, the Master Commissioner, the Auctioneer or the Plaintiff. If you bid on the property, you should have done your due diligence before you bid, as it will be too late if you wait until after you have purchased the property. There is an "amount to be raised" or "judgment amount" listed on the Notice of Sale. This is the amount of debt owed against the property that is needed to satisfy the Judgment. It is not necessarily the value of the property, nor is the property required to bring that amount. Regardless of the purchase price, all liens or claims of the parties will be satisfied and released when the deed passes to the purchaser, including, but limited to, all delinquent taxes. The law requires the property to be appraised by "two disinterested housekeepers". There is no requirement that the property bring the appraised value. The appraised value is utilized to determine if the owner will retain a right of redemption. All delinquent taxes will be paid from the proceeds of the sale. The purchaser will be responsible for the current year's taxes in their entirety. There will be NO PRORATING of the current year taxes. The Purchaser will receive a deed once the purchase price has been paid in full and the sale is confirmed by the Court. The Purchaser is entitled to possession of the property after the sale is confirmed. Even though a deed will not be delivered to the Purchaser immediately, the Purchaser has an equitable and insurable interest in the property and are STRONGLY URGED to immediately secure an insurance policy on the property for its full value.