Frequently Asked Questions
A. To obtain approval to bid, bidders must:
1) Register and create a user I.D. on CommercialBid.com
2) Request a Bid Number for each asset for which he intends to bid - Bidders may Request a Bid Number for an asset by
clicking the Request a Bid Number button on the asset detail page
3) Fund a $10,000 Bidder Deposit via cashier’s check or wire
4) Submit proof of funds documentation
Once a bidder has registered and been approved, they will be allowed to actively participate and place bids.
A. Potential purchasers will need to be prepared to provide a recent bank or brokerage account statement which demonstrates
that they have funds available (e.g. cash, stock, bonds, mutual funds) to purchase the asset(s) they are interested in bidding on.
The statement must be less than 90 days old.
A. A Buyer’s Premium is the fee charged to a winning bidder upon the sale of an asset. The Buyer’s Premium fee charged on all
CommercialBid.com assets is 1.5%.
For example, if the winning bid for an apartment building is $1,000,000, then the Buyer’s Premium fee would be
$15,000 (1.5% x $1,000,000). The Total Purchase Price is then calculated as the Winning Bid Amount plus the Buyer’s Premium
– in this case, $1,000,000 + $15,000 = $1,015,000 (Total Purchase Price).
A. A “reserve” is an amount established by the seller which represents their minimum selling price. Reserve prices are not
published and the starting bids do not represent the reserves.
A. Typically there is a reserve on all assets available on CommercialBid.com, however, please refer to each individual asset
detail page for further clarification on whether there is a reserve for each asset.
A. If at the conclusion of the live bidding period the highest bid does not meet the reserve for an asset, the highest bidder will be
contacted and informed that their winning bid is subject to acceptance by the Seller.
A. Yes. Following the expiration of live bidding for an asset and upon declaration of the winning bidder, the winning bidder will be
required to pay additional funds in the amount stated in the purchase and sale agreement (typically 10% of the purchase price)
within 48 hours of being selected as the winning bidder. The $10,000 Bidder Deposit will be applied towards the Earnest Money
requirement.
A. Yes. If bidders are planning to bid on more than one asset, they must register to bid on each individual asset they are
interested in bidding on. Additionally, bidders who are interested in bidding on multiple assets will need to show Proof of Funds
sufficient to cover the purchase of all assets they are interested in. Example: If a bidder plans on bidding $1,000,000 on Asset #1
and $2,500,000 on Asset #2, your Proof of Funds must show liquid funds in excess of $3,500,000.
A. If a bidder is the winning bidder of more than one asset, a separate Earnest Money Deposit is due for each winning bid.
A. Yes. Bidders that are interested in bidding on a commercial asset are strongly encouraged to view the property prior to placing
a bid. By registering and placing a bid on a property, bidders represent that they have viewed and inspected the property as well
as reviewed and accepted any and all information regarding the property information that they deem necessary to make an
informed decision. Properties will not be made available for inspection following the completion of live bidding. For a schedule of
when properties will be available for showing, please refer to the individual property’s detail page.
A. No. Bidders that are interested in purchasing loans will not be able to inspect or enter properties that may secured or
collateralize such loans.
A. In no event shall potential purchasers be allowed to contact borrowers or tenants without prior written authorization from the
Seller. Please contact the Property or Loan Sale Advisor to discuss any contact to these parties.
A. Certain information is available regarding each asset following the creation of a user profile on CommercialBid.com. Prior to
gaining access to the Due Diligence documents for a particular asset, prospective bidders will be required to execute a
Confidentiality Agreement. In addition, certain events may require further qualification, disclosure and financial conditions.
A. Once a bidder is registered and has accepted and agreed to a confidentiality agreement, they will be given access to a
number of Due Diligence items that will be available online. Once access has been granted, potential bidders will be able to
review the information/documents at any time. These documents may include property level profit and loss statements, occupancy
reports, loan documents, legal filings, appraisals, environmental reports, property condition reports, purchase and sale agreements,
title policies, deed of trust, copy of the note, and other pertinent information and documents. In addition, prospective bidders may
contact the Loan Sale or Property Advisor listed on the individual asset’s detail page for further information.
A. The live bidding period ends at the posted end time on the asset detail page. An asset will have extended bidding time added
if a bid is received in the final minutes of the live bidding period.
A. When a bid is placed the bidder will receive an email confirmation informing them that they are the highest bidder, additionally,
when a bidder is over bid, they will receive an email confirming that have been over bid and are no longer the highest bidder. At
the conclusion of the live bidding period, if the highest bid meets or exceeds the reserve price (if applicable), then the highest
bidder will receive a winning bidder confirmation via email in very short order. The email will detail the remaining steps to be taken
to close the transaction. Additionally, the winning bidder will receive a phone call shortly after the conclusion of the live bidding
period from one of our closing coordinators who will go over the remaining steps to close the transaction.
A. Any and all financing must be arranged by the bidders prior to an event. There will be no financing contingencies allowed,
unless otherwise stated on the Asset Details Page.
A. Depending the type of asset closing timeframes will vary from 10-30 days. Please refer to the Terms & Conditions and the
Purchase Agreement for specific timeframes and closing information.
A. The Seller provides a title commitment with the asset and chooses the title company that will issue such policy. Transaction
closings will be with an established, national escrow and title company. Please review the Terms & Conditions and Purchase
Agreement for specific details.
A. The closing costs that the winning bidder will be responsible for will be set forth in the purchase and sale agreement specific
to that asset. Costs include, but are not limited to, escrow fees, recording fees, normal pro-rations, title insurance premiums and
fees, loan fees, document processing fees and document transfer taxes.
A. Yes. Proper, good standing, documentation will be required. Please contact the Property or Loan Sale Advisor, or Escrow
Officer listed on the asset detail page for further instructions.
A. Usually, a warranty deed is conveyed, however all bidders should review the terms of the Purchase Agreement for specific
deeding information.
A. The winning bidder will be transferred and assigned all rights and interests in the loan via a Loan Purchase Agreement and
transfer documents. The loan purchase and transfer documents will be available for bidders to view on each loan detail page.
A. The winning bidder will be declared in default and shall be subject to the damages, rights and remedies provided for in the
Terms & Conditions available on CommercialBid.com.
A. No. Once an event ends, all results are confidential between Buyer and Seller.
A. For questions relating to a particular property or loan please contact the Property or Loan Sale Advisor listed on the asset
detail page.
