ADDENDUM A - TERMS & CONDITIONS AGREEMENT FOR REAL ESTATE AUCTION
1. Online Auction, Financing, and Binding Bids
This is an ONLINE public real estate auction; it is NOT a foreclosure auction. Financing is permitted; however, the purchase may not be contingent upon the Buyer obtaining financing. Buyers are responsible for securing any necessary financing prior to bidding.
This property is being sold pursuant to a court order to settle an estate. Title to the property will be conveyed free and clear of all liens and encumbrances, subject to permitted exceptions, with all real estate taxes paid or prorated through the date of closing. The property is subject to prior sale.
By registering for and participating in this auction, each bidder acknowledges that they have read, understand, and agree to all auction terms and conditions. These Terms and Conditions are incorporated into and made a part of the Offer to Purchase Agreement. All bidders must register online prior to the close of the auction in order to bid. Each registered bidder will be assigned a unique bidder number. All bids submitted are irrevocable and binding upon the bidder.
Submission of the winning bid creates legally enforceable obligations under these auction terms, regardless of whether the successful bidder subsequently executes the Offer to Purchase Agreement, subject to applicable law and any required court approval. The successful bidder agrees to complete the purchase in accordance with these Terms and Conditions and execute all required real estate documents within the established deadlines. Failure to do so may constitute a default and subject the bidder to the remedies described in Paragraph 11.
2. Disclaimer & Absence of Warranties
The property is sold "AS IS, WHERE IS, WITH ALL FAULTS," with no financing, inspection, appraisal, zoning, or other contingencies to sale. No warranty or representation, either expressed or implied, concerning the property is made by the Seller or the Auction Company, except as required by law.
All sketches, measurements, square footage, acreage, and dimensions in any brochure, advertisement, or marketing materials are approximate. Each potential bidder is responsible for conducting their own independent inspections, investigations, inquiries, and due diligence concerning the property. The information provided is subject to verification by all parties relying upon it. No liability for its accuracy, errors, or omissions is assumed by the Seller or the Auction Company, except as otherwise required by law.
Previous Flooding Disclosure: During a significant storm in July 2026, the lower level of the property was affected by flooding. Professional restoration work was subsequently completed, and the lower level could benefit from additional finishing and cosmetic updates to suit the new owner's preferences. Buyers are encouraged to inspect the property and review all available disclosures prior to bidding.
Property Inspection Report & Disclosure: A property inspection report prepared by Builders Home Inspections, dated June 25, 2026, has been made available to prospective buyers. The report identifies various deficiencies, recommended repairs, and potential safety hazards, including a potential natural gas and carbon monoxide hazard involving the lower-level kitchen gas range. Buyers are strongly encouraged to review the entire report and conduct their own independent inspections and due diligence prior to bidding.
The inspection report predates the July 2026 flooding and subsequent restoration work and does not establish the property's current or post-restoration condition. The report is provided for informational purposes only and reflects the independent inspector's observations at the time of inspection. Neither the Seller nor Beloit Auction & Realty, Inc. warrants its accuracy, completeness, or the property's current condition. Additional or concealed defects may exist.
By bidding, buyers acknowledge that the report has been made available, accept responsibility for evaluating the property's condition, and understand that the property is being sold AS IS, WHERE IS, WITH ALL FAULTS, without inspection or repair contingencies. Neither the Seller nor the Auction Company is obligated to make repairs or provide credits, except as required by law or expressly agreed in writing.
Financing Disclosure: Although professional restoration work was completed following the July 2026 flooding, the property's current condition may prevent it from qualifying for FHA, VA, USDA, and certain conventional mortgage loan programs. Buyers intending to finance their purchase are strongly encouraged to consult with their lender prior to bidding to determine whether the property qualifies for their intended financing program.
The property is being sold AS IS, WHERE IS, WITH ALL FAULTS, and the Seller will not make repairs to satisfy lender requirements. The purchase is not contingent upon financing approval, appraisal results, or lender requirements. Failure to obtain financing shall not relieve the successful bidder of their obligation to complete the purchase within the established closing deadline.
Potential buyers can arrange for their own property inspection by a licensed inspector at least 72 hours prior to the auction date at their own expense. All inspections must be completed prior to bidding.
3. Conduct of Auction and Extended Bidding
Conduct of the auction and increments of bidding are at the direction and discretion of the Auctioneer. The Auctioneer cannot, and will not, be held responsible for any interruption in service, errors, and/or omissions caused by any means and does not guarantee continual, uninterrupted, or error-free service or use of the Site, except as otherwise required by law.
Bidder acknowledges that this auction is conducted electronically and relies on hardware and software that may malfunction without warning. The Auctioneer, in their sole discretion and to the extent permitted by law, may void any affected bid, temporarily suspend bidding, extend the auction, reopen bidding, or resell the property affected by any malfunction. All decisions of the Auction Company/Auctioneer regarding the conduct of the auction are final, subject to any controlling court order.
Soft Close / Extended Bidding: The online auction is scheduled to begin closing at 7:07 PM on Tuesday, November 17, 2026.
This auction utilizes an automatic soft-close bidding system. If a bid is placed during the final 90 seconds of the auction, the closing time will automatically extend for an additional 90 seconds. Any subsequent bid placed during the final 90 seconds of an extended bidding period will trigger another 90-second extension. This process will continue until no additional bids are received during the final 90 seconds.
The auction will not officially close until the extended bidding period has expired without another bid. Bidders are strongly encouraged to place their bids early and not wait until the final seconds of the auction.
4. Buyer's Fee, Purchase Agreement, Earnest Money, and Closing
This is a Buyer's Fee Auction. A 10% buyer's fee will be added to the high bid to determine the total purchase price. The auction has a minimum opening bid/reserve price of $139,000. The minimum opening bid is also the reserve price, and the buyer's fee does not count toward satisfying the reserve.
The successful bidder shall be required to execute a standard Offer to Purchase Agreement and all related real estate documents and paperwork, either in person or electronically via DocuSign, no later than 11:00 AM on Wednesday, November 18, 2026, the day following the close of the auction. Failure to execute and return all required documents by this deadline shall constitute a default under the terms of this auction.
The successful bidder acknowledges that the obligation to execute these documents arises from participation in the auction and submission of the winning bid and is not dependent upon the subsequent execution of the Offer to Purchase Agreement, subject to applicable law and any required court approval.
A non-refundable earnest money deposit of $8,000.00 is due no later than 4:00 PM on Thursday, November 19, 2026. Payment shall be made by cash or wire transfer. A receipt acknowledging payment will be provided to the Buyer upon receipt of the earnest money deposit.
Upon acceptance of the Offer to Purchase by the Seller, the earnest money deposit shall be applied toward the total purchase price at closing. The treatment and forfeiture of the deposit in the event of Buyer default shall be governed by the Offer to Purchase Agreement and applicable law.
Time is of the essence in all aspects of this transaction.
Closing shall occur on or before Tuesday, December 22, 2026, at which time the balance of the purchase price shall be due and payable in full by wire transfer or certified funds. Closing shall be conducted by a local attorney designated by Beloit Auction & Realty, Inc., at a location within twenty (20) minutes of the property. The specific closing location and time will be provided to the Buyer in advance.
Closing Extension: The Buyer may extend the closing deadline to on or before Tuesday, December 29, 2026, by increasing the total purchase price by $10,000.00.
To exercise this extension, the Buyer must pay an additional $10,000.00 extension deposit by cash or wire transfer no later than 4:00 PM on Tuesday, December 22, 2026. This extension deposit is non-refundable in the event of Buyer default; however, if closing occurs, it shall be applied toward the increased total purchase price.
The extension shall not become effective unless the additional deposit is received by the deadline and the Buyer executes any required written amendment to the Offer to Purchase Agreement.
If the transaction does not close due to Buyer default, the extension deposit may be retained as liquidated damages in accordance with the Offer to Purchase Agreement and applicable law. No additional extensions shall be granted without the Seller's written approval and any required court authorization.
5. Financing, Property Condition, Access, and Possession
Buyers intending to obtain financing must verify their lender's requirements and the property's eligibility prior to bidding. The Seller is not obligated to make any repairs, improvements, or alterations to satisfy lender requirements, and no repairs, improvements, or alterations shall be permitted prior to closing.
The successful bidder must meet the closing deadline specified in Paragraph 4, regardless of financing approval, appraisal results, lender requirements, or delays. Failure to obtain financing, lender approval, or a satisfactory appraisal shall not relieve the Buyer of their contractual obligations.
Property Access and Possession: The successful bidder shall not be permitted access to the property following the auction and prior to closing, except for a lender-required appraisal and one final walkthrough within 72 hours prior to the scheduled closing date.
The appraisal and final walkthrough must be scheduled in advance and coordinated through Beloit Auction & Realty, Inc. The final walkthrough is intended solely to allow the Buyer to observe the property's condition prior to closing and shall not constitute an additional inspection contingency or provide grounds for renegotiating the purchase price based upon conditions disclosed or reasonably discoverable prior to bidding, except as otherwise required by law.
No other inspections, contractor visits, measurements, repairs, improvements, removal of property, storage, or occupancy shall be permitted prior to closing.
Possession and unrestricted access to the property shall be granted only upon successful completion of closing, receipt of the full purchase price, and transfer of ownership. No early possession or occupancy shall be permitted.
6. Changes, Corrections, and New Additions
Please check our website and the auction you are interested in prior to the scheduled auction closing time to inspect any changes, corrections, additions, disclosures, or announcements concerning the property, photographs, descriptions, and auction information.
Any published changes or additions shall become part of these Terms and Conditions. All property inspection reports, written disclosures, and supplemental documents made available through the auction listing prior to the close of bidding shall be considered part of the information provided to prospective bidders for their review and due diligence.
7. Title Insurance, Taxes, and Closing Costs
Seller to provide title insurance and pay or prorate all real estate taxes through the date of closing. Title shall be conveyed free and clear of liens and encumbrances, subject to permitted exceptions and applicable court orders.
Buyer acknowledges that Buyer is responsible for all other closing costs pertaining to the Buyer's side of the closing statement. These costs may include but are not limited to the balance of the purchase price, attorney fees, deed recording, survey (if required), mortgage fees, lender-required inspections, lender's title insurance, and any other fees or expenses required on the Buyer's side to close the transaction.
Deed preparation, transfer taxes, and other closing expenses shall be allocated in accordance with the Offer to Purchase Agreement and applicable law.
8. Agency
Beloit Auction & Realty, Inc. represents the Seller(s) only and does not inspect properties on any bidder's behalf. Potential buyers must conduct their own due diligence and investigation of the property and must also investigate the condition, zoning, permitted uses, suitability, and any other matters affecting the property prior to making a bid and purchasing at the auction.
Beloit Auction & Realty, Inc. acts as the Seller's real estate brokerage and auction company and does not represent the interests of any bidder or Buyer unless a separate written agency agreement expressly provides otherwise.
9. Non-Reliance Provision
The parties hereto, in executing this agreement, do not rely on any inducements, promises, or representations other than those expressly contained in this agreement, the Offer to Purchase Agreement, and any written disclosures or addenda incorporated into the transaction.
Nothing in this provision shall waive any rights or remedies that cannot legally be waived.
10. Buyer Agency Agreement
All bidders are responsible for notifying the Auctioneer of any potential buyer agency agreement(s) in place before registration and bidding on the auction, at least 72 hours prior to the scheduled closing time of the auction.
There is no cooperating real estate firm commission or buyer-broker compensation paid out by the Seller or Beloit Auction & Realty, Inc. on the sale of this property. Any compensation owed to a buyer's agent or brokerage shall be the responsibility of the Buyer pursuant to their separate agreement.
11. Buyer Default
If the successful bidder refuses or fails to complete the transaction for ANY reason, including but not limited to failure to execute and return the Offer to Purchase Agreement and all related real estate documents, remit the required earnest money or extension deposit, obtain financing, provide the balance of the purchase price, or close within the established deadline, the Buyer shall be considered in default.
The successful bidder acknowledges that submitting the winning bid creates binding obligations under these auction terms, regardless of whether the Buyer subsequently executes the Offer to Purchase Agreement, subject to applicable law and any required court approval.
Upon termination of the transaction due to Buyer default, the Buyer shall relinquish any contractual right to complete the purchase and shall have no ownership interest in the property.
Earnest Money and Seller Remedies: In the event of Buyer default, all earnest money and extension deposits may be forfeited as liquidated damages in accordance with the Offer to Purchase Agreement and applicable law.
The Seller's right to retain deposits, pursue specific performance, or seek other available remedies shall be governed by the Offer to Purchase Agreement and applicable law. Nothing herein shall authorize duplicate recovery of damages or expand the Seller's remedies beyond those legally available.
Auction Company Damages and Expenses: The Buyer acknowledges that a default may cause Beloit Auction & Realty, Inc. to incur additional expenses and financial losses, including but not limited to advertising and marketing expenses, auction platform and technology expenses, administrative and staffing expenses, expenses associated with conducting another auction, and the loss of auction commissions or buyer's fees that would otherwise have been earned upon successful completion of the transaction.
Beloit Auction & Realty, Inc. reserves the right to pursue recovery of its independently recoverable damages, expenses, lost compensation, and reasonable attorney fees arising from Buyer default, to the extent authorized by the auction registration agreement, other applicable agreements, and law. Any recovery shall be limited to legally recoverable amounts and shall not result in duplicate compensation.
Resale of Property: In the event of Buyer default, the Seller and Auction Company may, subject to the applicable agreements and any required court authorization, terminate the transaction and offer the property for sale again, whether by auction, private sale, or other lawful means.
Any claim for a deficiency in the resale price, additional marketing expenses, carrying costs, or other losses shall be governed by the applicable agreements and law.
Dispute Resolution: Any dispute between Beloit Auction & Realty, Inc. and a bidder or Buyer arising specifically from auction registration, bidding, or auction services shall be resolved through arbitration in Rock County, Wisconsin, to the extent permitted by applicable law and the governing arbitration agreement.
Disputes concerning title, conveyance, the Offer to Purchase Agreement, or matters within the jurisdiction of the Illinois court supervising the estate shall remain subject to the authority of the appropriate court.
PLEASE BE ADVISED: A successful bidder who fails to fulfill their obligations may be subject to legal action, including claims for damages, specific performance where available, and recovery of attorney fees and costs where authorized by contract or law.
