The only difference is… - Posted by JT-IN
Posted by JT-IN on July 17, 2007 at 19:54:01:
With the auction you won’t have any contingency clauses. You are purchasing the property void of any chance to reconsider your hand being the last one in the air… So make sure you understand EVERYTHING up front.
The fact that it is a Trust sale doesn’t mean anything either. The property is owned by a Trust, the trustee will convey the deed to the high bidder. The auction shouldn’t preclude interior inspections, or thoroughly looking at all mechanical systems either. The only significance here is that the party who is deceased had enough forethought to place the property into a trust, and hence it is not being sold subject to settling of his estate. Once of the benefits of property being in trust, just because the party holding beneficial interest dies, the trust doesn’t… The contingent beneficiary is now going to be the recipient of the proceeds, that is all. Title should be clear, but you will check that. Of course read the fine print of the auction, but most of them represent that they will convey clear title, so if they can’t for any reason, that would leave you off the hook.
That’s about it… just know what you will bid in advance, and why, and stick to your game plan… Don’t get caught up in auction day fever, as many do. Since this is your first consideration of any auction property, you may also want to go extremely conservative, or simply plan on watching from the sidelines, which wouldn’t hurt either. Your call, of course. Good luck.