If you are the successful bidder on a property at the auction, you will have finished the day having paid 20% of the high-bid sales price of that parcel. You will be required to complete forms verifying your eligibility to purchase property from the City. You will receive a purchaser package including all the Instructions & Forms necessary to complete your transaction with the City.
If you wish to assign the sales contract to another party, you must complete a purchaser assignment form. All assignments must be completed by the designated 14-day auction due date. Also due on designated 14th day after auction is the purchaser's Verified Statement and Tax Affidavit. Both these forms and the due dates are included with your purchaser package.
Some purchasers will have made payment in full on the day of sale. Most purchasers, however, will have only paid a deposit and will owe a balance on the sale, which in most cases, will be 80% of the sales price. The balance of the purchase price is due on the designated 45-day auction due date. THE CITY WILL NOT OFFER MORTGAGES OR ANY OTHER PAYMENT PLANS.
Also due on the designation 45th day auction due date are any objections to title or survey. Title and survey objections must be submitted in the form of a title report issued by a title company. Please refer to the Terms and Conditions of Sale for more information regarding the submission of title objections.
There are never any outstanding real estate taxes owed on the property sold at auction. However, there may be outstanding liens on some parcels. The majority of parcels in the auction have marketable title, however, if any pre-existing liens are identified your title company and the City's Law Department will discuss the issues regarding marketability of title. To ensure that a given property is clear of liens, have a title company run a title search on the property before the auction. You can also visit the City or County Clerk's Office in the borough where the parcel is located and research the parcel itself. This will ensure that you will be entering the auction with a full understanding of the parcel you desire to purchase.
Once all post closing requirements are satisfied, a mutually convenient date for title closing will be scheduled.
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