Auction earnest money and closing in Tennessee
Earnest money at a Common Hour real estate auction is due to the escrow agent within 24 hours of the close, and it is non-refundable. Payments go to Title Escrow of Robertson County, or another escrow agent designated in writing, and the balance is due at closing. Closing is within 30 days of the auction unless the sale's Special Terms say otherwise.
Earnest money at a real estate auction
Earnest money is the payment a buyer makes right after winning to show the purchase is real. It gives the seller something firm to rely on while the sale moves to closing.
Under Common Hour's auction terms, the buyer's premium also serves as the non-refundable earnest money. It is due to the escrow agent within 24 hours of the close.
Non-refundable means you do not get it back if you change your mind. A sale's Special Terms can change these terms, and where they do, the Special Terms control.
Commissions and fees are not set by law and are fully negotiable.
Who holds the money
Payments go to Title Escrow of Robertson County, or another escrow agent designated in writing. Common Hour does not take direct payment, so do not send funds to the firm.
Earnest money is held in escrow. That keeps it with the escrow agent, not with the auction firm, while the sale moves toward closing.
Payment deadlines
The clock starts at the close of the auction, and the deadlines depend on what you bought. Special Terms can set different dates.
- Real estate: earnest money is due within 24 hours of the close.
- Real estate: the balance is due at closing, within 30 days of the auction.
- Personal property: the hammer price plus premium is due in full within 24 hours of the close.
Commissions and fees are not set by law and are fully negotiable.
Accepted payment
The escrow agent takes the forms below. Personal checks and cash are not accepted unless approved in advance.
- Wire
- Certified check or cashier's check
- ACH
- Other forms the escrow agent accepts in writing
Title and deed
The seller conveys marketable title by general warranty deed unless the sale's Special Terms say otherwise.
Common Hour's auction terms recommend title insurance at the buyer's expense. A title company or your attorney can walk you through what a policy covers.
Who pays which closing costs
Common Hour's auction terms split closing costs as shown here. A sale's Special Terms can change the split, and where they do, the Special Terms control.
- Seller pays: deed preparation, transfer tax and recording of lien releases.
- Buyer pays: title insurance, deed recording and lender costs.
- Taxes are prorated through closing.
Financing
You can use a loan to pay for real estate at auction, but the sale does not wait on it. Real estate is sold with no financing contingency.
Failure to get a loan does not refund the premium or release the buyer. Talk to your lender before you bid, so you know the closing date can work. Registration can also require lender pre-approval or proof of funds.
Commissions and fees are not set by law and are fully negotiable.
What happens after the hammer
The contract forms
The fall of the hammer, or its online equivalent, forms a binding contract. Bids are irrevocable, so the winning bid cannot be withdrawn.
Earnest money goes to escrow
Within 24 hours of the close, the buyer pays the earnest money to the escrow agent.
The buyer gets ready to close
If you are using a loan, this is when your lender does its work. It is also the time to arrange title insurance.
The sale closes
The buyer pays the balance, the seller conveys title and taxes are prorated through closing. This happens within 30 days of the auction unless the sale's Special Terms say otherwise.
After the hammer on personal property
Personal property has no closing. You pay in full within 24 hours of the close, and items are released after payment clears. Risk of loss passes at the hammer, and you arrange transport and labor for pickup in the published window.
If a buyer defaults
Default means the buyer does not close. Buyer default at closing forfeits the buyer's premium, and the buyer stays liable for further damages.
We cannot tell you what that means for your situation. If you think a closing is in trouble, call your attorney right away.
Commissions and fees are not set by law and are fully negotiable.
These are the general terms
This page puts Common Hour's auction terms in plain words. It is not legal advice. A sale's Special Terms control where they differ, so check the deadlines and the closing cost split for your sale before you bid.