Domus Optima RESERVE Real Estate Auction Basics
Domus Optima’s Reserve Real Estate Auction (Type R) represents a variety of the most common English type of auction, where a real estate property is sold to the highest bidder only if the highest bid has met or exceeded the Reserve Price. The Reserve Price is set by the seller prior to the auction and is not disclosed to the bidders until the winner is announced.
All bidders compete on the SAME auction terms and conditions by submitting their ascending bids online with pre-defined bid increments and auto-extending auction closing time (soft closing).
Please find below a simplified flow chart of the Domus Optima Reserve Real Estate Auction:
The seller submits a Reserve Real Estate Auction listing application through his/her realtor (listing real estate agent / broker).
Upon obtaining available property information / reports, as well as the completion of all Domus Optima Reserve Real Estate Auction listing formalities, all auction terms are set. The seller’s property is then listed for the upcoming auction on an ‘as-is’ basis.
Potential buyers (along with their cooperating agents/brokers, if any) complete their due diligence (including visiting the seller’s property), obtain mortgage pre-approval (if mortgage is required), and register to participate in the upcoming Domus Optima Reserve Real Estate Auction. While registering for the auction, potential buyers are encouraged to pre-authorize the Auction Administrative Fee amount stated in the auction listing.
Domus Optima Reserve Real Estate Auction starts on the advertised date and time.
Registered potential buyers submit their ascending bids online on the SAME auction terms and conditions at or above the Starting Bid amount with pre-defined bid increments and auto-extending auction closing time (soft closing).
If a bid is placed within the last 3 minutes of the Reserve Real Estate Auction, the closing time will be automatically extended for an additional 3 minutes to allow for other bidders to have a fair chance to compete.
At the auction closing time, if the Reserve Price set by the seller is not met, all the Reserve Real Estate Auction bidders will be informed. Their Auction Administrative Fees will be waived, with their respective pre-authorizations being cancelled/released.
At the auction closing time, if the Reserve Price set by the seller is met, the highest bidder is declared as the winner of the auction. All Auction Administrative Fees of the non-winning bidders are waived and their respective pre-authorizations are cancelled/released.
The winning bidder provides all legal paperwork along with a deposit set by the seller, as stated in the auction listing. The seller completes his/her part of the paperwork accordingly. The balance of the winning bid amount is due by the property closing date.
The winning bidder is responsible for the payment of all his/her closing costs, including, but not limited to Land Transfer Tax(es), Legal and Government Registration Fees.
On the property closing date and upon fulfillment of all legal formalities, the ownership and possession of the property is transferred to the auction winner, and the seller receives a cheque or bank transfer for the proceeds of the sale. Upon successful closing, the Auction Administrative Fee previously pre-authorised by the buyer is waived and its pre-authorization is cancelled/released.
Domus Optima Reserve Real Estate Auction Vs. Traditional Process:
Domus Optima Real Estate Auctions Basics: