AGENTS FOR AUCTION BIDDERS: In today’s market, Realtors and real estate agents are turning to alternative methods of assisting potential purchasers and investors to procure real estate opportunities. One method of procurement that is slowly becoming more prevalant is assisting prospective purchasers in foreclosure auctions. However, agents must be extremely cautious in assisting purchasers in this area of the market. I suggest that a disclaimer be used to disclose the potential pitfalls that lie intertwined in the process of a foreclosure. Here is example language that can be used to protect yourself as an Agent:
“Purchaser hereby understands that Agent is solely assisting Purchaser in the bidding process of a foreclosed property. Purchaser further understands that purchasing a foreclosured property may involve assuming certain risks with regard to the physical condition and title to the property. An example of potential issues that a foreclosed property may have, includes but is not limited to, code enforcement violations, open permit issues, and junior lienholders that were not included the foreclosure proceeding.”
Depending on the scope of service provided by the Agent, an Agent can also use some of the following paragraphs as further disclosure:
“1) Purchaser is purchasing the Property solely in reliance on its own investigation and inspection of the Property and not on any information, representation or warranty provided or to be provided by Agent, its representatives, brokers, employees, or assigns”.
“(2) Neither Agent, its employees, representatives, brokers, or assigns, has made any representations or warranties, implied or expressed, relating to the physical condition or title status of the Property”.
“(3) The Purchaser, his/her heirs, administrators, executors, successors, assigns, agents or other representatives agree to hold Agent harmless and shall defend and indemnify, Agent, from and against any loss, damage, cost, liability or expense which it may sustain, suffer or be put to due to the services provided herein”.
These are just a few disclaimer provisions that may be used by an Agent when assisinting a potential pruchaser in a foreclosure auction. Feel free to contribute to this post by adding other language that you may suggest.