1. What is the MINIMUM UPSET PRICE?
2. If there are no bidders on a parcel at this sale, will the parcel come up for sale again?
3. How much money is due on the day of the auction?
4. What is the CASH REQUIREMENT?
5. What is a DEPOSIT and how must this be paid?
6. Are any other payments required on the day of the auction?
7. When are Affidavits and Business Entity paperwork due?
8. May I Assign my Sales Contract?
9. When must title objections be filed and in what form?
10. Will a title objection result in a cancellation of sale?
11.Am I responsible for liens and violations on property?
12. When must I pay the balance still due on the purchase price of my parcel?
13. What happens if I don't make the balance payment or submit required paperwork, affidavits, completed mortgage application package and fee?
14. When do I close title?
15. If the property is presently being used by other people, how do I claim possession?
16. What closing costs will I have to pay?
17. Do I need to hire an attorney to represent me?
18. Do I need to use a broker to bid?
19. What does the “accessory, extension or enlargement uses only” restriction mean?
20. What is an interior lot?
1. What is the MINIMUM UPSET PRICE?
This is the price at which the bidding will begin. For example, if the MINIMUM UPSET PRICE is $5,000, the bidding cannot begin below $5,000.
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2. If there are no bidders on a parcel at this sale, will the parcel come up for sale again?
If there are no bids on a parcel when first offered at auction, it may be re-offered prior to the conclusion of the session. If no bids are made the second time, the parcel will be re-evaluated and may be re-offered at public auction at a future date.
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3. How much money is due on the day of the auction?
You must submit the cash requirement or 20% of the purchase price whichever is greater, in the form of a deposit, on the day of the auction.
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4. What is the CASH REQUIREMENT?
The cash requirement is listed next to each parcel and is the amount payable at the close of bidding. Payment must be in the form of official bank check, certified check, cash, travelers check, bank money order or postal money order. All checks must be made payable to NYC/DCAS/DRES. Personal checks will not be accepted for the cash requirement. CASH WILL ONLY BE ACCEPTED IN $100 BILLS. The cash requirement must be in its proper form before you bid on a parcel. You must submit the cash requirement to the auctioneer's staff member on the floor of the auction immediately following the conclusion of bidding. Failure to follow these guidelines will disqualify you from bidding on any additional parcels for the remainder of the auction.
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5. What is a DEPOSIT and how must this be paid?
The deposit will consist of the cash requirement or 20% of the sales price, whichever is greater. The cash requirement must be paid in the form of official bank check, certified check, cash, travelers check, bank money order or postal money order. The difference between the cash requirement and 20% of the sales price, if any, may be paid by personal check. Remember you must be prepared at the time of the bid to deposit both the cash requirement and any additional funds necessary to meet the deposit requirements. You will not be permitted to leave the auditorium without completing the payment process. Periodically during the auction, announcements will be made for bidders to complete all auction day contract requirements. If you do not come forward before the end of the session, your bid may be rejected and the parcel reoffered.
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6. Are any other payments required on the day of the auction?
Yes. In addition to the deposit, the Purchaser is responsible for an AUCTIONEER’S FEE (see paragraph 27 of the Terms and Conditions of Sale). This fee is payable by cash or personal check and must be paid to the auctioneer prior to signing the contract.
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7. When are Affidavits and Business Entity paperwork due?
All affidavits, partnership certificates, corporate resolutions, incumbency certificates and certificates of good standing must be duly executed and submitted within 14 days of the auction. Failure to comply will result in a default.
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8. May I Assign my Sales Contract?
You may apply to assign your sales contract. All assignments must be submitted within fourteen (14) calendar days of the auction. However, all assignment requests must be on the form provided by the Division of Real Estate Services, and accompanied by required Affidavits and paperwork. A fee of $200 must accompany each request. The fee must be submitted in the form of official bank check, certified check, bank money order or postal money order made payable to the NYC/DCAS/DRES. No assignment shall be valid for any purpose unless and until approved in writing by the Division of Real Estate Services.
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9. When must title objections be filed and in what form?
All title objections must be filed in writing within forty-five (45) days of the auction. A title report issued by a Title Company certified to conduct business in the State of New York, and if applicable, a survey, must accompany each submission. Failure to submit in a timely manner may result in a waiver of all rights to file title objections.
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10. Will a title objection result in a cancellation of sale?
If your title company identifies a title objection, it will be reviewed by the NYC Law Department with your title company. Most title objections are resolved and the property is conveyed. See Paragraph 21 of the Standard Terms and Conditions of Sales for further information regarding title objections.
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11. Am I responsible for liens and violations on property?
Buyers will not be responsible for real estate taxes, water charges or sewer charges that accrued during City ownership, however, buyers will be responsible for pre-existing violations. See Paragraph 15 of the Standard Terms and Conditions of Sales for further information regarding title objections.
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12. When must I pay the balance still due on the purchase price of my parcel?
If the purchase price is less than $20,001, the entire balance must be paid within 45 days of the date of the auction. For example, if the purchase price is $10,000, the deposit due on the day of the auction is $2,000, and the remaining balance due equals $8,000. The balance of $8,000 must be paid within 45 days of the date of the auction. If the purchase price is $20,001 or more, you may be eligible to apply for a purchase money mortgage for a portion of the purchase price. If you are eligible for a purchase money mortgage, you must submit the appropriate downpayment within 45 days of the date of the auction. Additionally, a fee of one percent (1%) of the face amount of the mortgage, but not to exceed $5,000, must also be remitted for the processing of the mortgage application. These payments must be in the form of official bank check, certified check, bank money order or postal money order made payable to NYC/DCAS/DRES. Cash is not accepted. Also note that a complete mortgage application package must accompany the downpayment. All balance payments must be in the form of official bank check, certified check, bank money order or postal money order made payable to NYC/DCAS/DRES.
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13. What happens if I don't make the balance payment or submit required paperwork, affidavits, completed mortgage application package and fee?
The Division of Real Estate Services will place you in default of all Terms and Conditions of Sale. In the event that you are placed in default, the City will retain all monies paid on account of the purchase as liquidated damages, and may resell the property at a future auction. Furthermore, the City of New York will not permit you to bid on, close title on or purchase property from the City for a period of five years.
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14. When do I close title?
When all requirements under the Terms and Conditions of Sale have been met, the file is forwarded to the Title Closing Unit. ATitle Closing Attorney is assigned to arrange a mutually convenient closing date. If we cannot reach you by phone, we will set a closing. You will be notified of the date and time by certified mail.
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15. If the property is presently being used by other people, how do I claim possession?
You are not legally the owner of the property until title has closed and you have received your deed, at which time you are solely responsible for claiming possession in any legal manner you may deem necessary.
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16. What closing costs will I have to pay?
Before your closing, you will receive an appointment letter confirming time, date and closing costs. The charges include recording fees for the deed and mortgage, a state stamp tax, a City transfer tax, a service charge for preparing a note and mortgage, and taxes from the closing date to the end of the tax quarter. If you have a mortgage, you will be required to pay mortgage interest from the closing date to the end of the month. Should you adjourn your closing date, adjournment fees will be paid at closing in addition to the other charges.
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17. Do I need to hire an attorney to represent me?
Whether or not you wish to retain an attorney to represent your interests is your decision. If you are not represented at the time of title closing, DRES’s closing attorney will describe the documents you are signing and forward the appropriate instruments to the City Register for recording. Read and familiarize yourself with the Terms and Conditions of Sale and the property offering described in the brochure.
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18. Do I need to use a broker to bid?
No. You do not need to be represented by a broker to bid on property. Please be aware that the City does not pay any brokers’ commissions, pursuant to Paragraph 28 of the Terms and Conditions of Sale. Bidders are encouraged to attend the pre-auction Seminar to learn about the bidding process.
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19. What does the “accessory, extension or enlargement uses only” restriction mean?
Properties sold with these restrictions can usually be used only by the adjacent owner to support an existing use next door. Examples of acceptable uses are: parking for homes, gardens next to homes and parking to support adjacent businesses. Expansions or enlargements to existing homes or businesses are permitted. However, separate buildings are not allowed. Refer to the New York City Zoning Resolution or contact the Department of City Planning for further requirements.
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20. What is an interior lot?
Bidders are advised that the subject parcel is an interior lot, which means there is no direct access from any street to the subject parcel. Bidders are advised to determine whether upon acquisition of the parcel they will have access to the lot; the City makes no representations in this regard.
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