REAL ESTATE ONLINE AUCTION TERMS AND CONDITIONS 2013 Shady Lane Drive, Huntsville, AL 35810 THIS IS AN ONLINE ONLY AUCTION. YOUR BID IS A BINDING, LEGAL AGREEMENT SUBJECT TO ALL LEGAL REMEDIES AVAILBLE TO THE SELLER IN CASE OF FAILURE TO SIGN THE SALES CONTRACT OR TENDER THE REQUIRED DEPOSIT. DO NOT BID IF YOU ARE UNABLE TO COMPLY WITH THESE TERMS, SIGN THE CONTRACT, OR PAY THE REQUIRED DEPOSIT UPON CLOSE OF ONLINE BIDDING. THE HIGH BIDDER IS REQUIRED TO BE AVAILABLE BY PHONE IMMEDIATELY AFTER THE CLOSE OF THE AUCTION. CONTRACT DOCUMENTS and DISCLOSURES ARE AVAILABLE FOR REVIEW PRIOR TO BIDDING BY VISITING redstoneauctions.com. BIDS ARE NOT CONTINGENT UPON INSPECTION, FINANCING, OR APPRAISAL. CLOSING IS TO OCCUR ON OR BEFORE 30 DAYS FROM THE CLOSE OF THE AUCTION. AUCTION FORMAT: The auction will extend bidding beyond the posted closing time for any bids coming in near the fall of the hammer and will continue until there is no bidding activity for 5 minutes. By bidding, or registering to bid, you agree to all of the terms and conditions set forth herein. Your agreement with these terms and conditions will be delivered to the auction company upon completion of your registration: 1. BUYER PREMIUM: A 10% buyer premium will be added to the last and highest bid to arrive at the final contract price. 2. EARNEST MONEY: Earnest money in the amount of 10% of the high bid is due and payable by the Buyer within 24 hours of the auction close at the office of Redstone Auctions via wire transfer or other acceptable tender approved by the Auctioneer. 3. CONTRACT SIGNATURE AND DELIVERY: The contract is to be executed by the Buyer electronically within 1 hour being of the it being tendered by the auction company to the high bidder. Please take time to review the terms and conditions of the purchase agreement prior to placing a bid. A blank contract document is available for review at redstoneauctions.com. 4. DEFAULT: Failure to sign the contract package and/or pay the required deposit will be considered a DEFAULT by the Buyer subject to all legal remedies available to the Seller and Redstone Auctions. Time is of the essence. 4. AGENCY DISCLOSURE: Redstone Auctions represents the seller only in all cases. The Real Estate Bokerage Services Disclosure is available for review at redstoneauctions.com and will be included in the final contract package for Buyer signature. 5. AFFILIATED BUSINESS DISCLOSURE: We are a wholly-owned subsidiary of Redstone Federal Credit Union (RFCU). RFCU offers title, mortgage, and insurance services. You are NOT required to use these services and are free to choose your own service providers. An affiliated business disclosure document requiring the buyer's signature acknowledging this disclosure will be part of the final sales contract package. This document is available for advance review at redstoneauctions.com. 6. RESERVE AUCTION: Unless otherwise noted, all auctions are with reserve. However, the Seller may, at any time, confirm the sale prior to the close of bidding. 7. AS IS, WHERE IS: All real estate and personal property sells in 'AS IS, WHERE IS' condition with no warranty or guarantee of any kind. You are encouraged to inspect the property and conduct all due diligence prior to placing a bid. 8. TITLE: Title will be conveyed by warranty deed using the existing legal description of record. 9. NO CONTINGENCIES: Your bid is legal and binding. Furthermore, bids are NOT contingent upon inspections, appraisals, or acquiring financing. 10. PROPERTY TAX: Property taxes will be prorated from the date of closing with Buyer responsible for future assessments or rollbacks. All tax prorations at closing are final and will not be readjusted. 12. LEAD PAINT: (If applicable) Homes built prior to 1978 may contain lead paint. Availablity to inspect is being advertised at least 10 days prior to the close of the auction. By bidding, you agree you have either satisfactorily inspected for lead paint or waive the option to do so. A federally-required lead paint disclosure form will be made part of the final contract package noting the waiver of lead paint inspection. The seller has no records or knowledge of lead paint in the home. 13. CLOSING COSTS: Any and all closing costs, including any loan fees, recording costs, attorney's closing fee, and title search and/or insurance (if desired), are the sole responsibility of the Buyer. 14. BUYER/BIDDER acknowledges to and agrees with Seller and Auctioneer that with respect to the property, Seller and Auctioneer have not, do not, and will not make any warranties or representations, express or implied, or arising by operation of law, including, but not limited to, warranty as to the value, physical condition, square footage, size, area or acreage of the property; matters of municipal code violation including but not limted to the presence of open building permits, unresolved code violations, or unpermitted improvements; environmental or hazardous conditions including but not limited to wetlands, lead based paint, radon gas, asbestos, underground storage tanks, illegal or illicit pharmaceutical manufacturing, or any other hazard; zoning compliance, good repair, operability, habitability, tenantability, suitability, merchantability, profitability, marketability, past or present compliance with any rules, regulations, covenants, or restrictions; future value, development potential, or fitness for any particular purpose of the property. 15. ALL MEASUREMENTS ARE APPROXIMATE: Information provided, including acreage/lot size and home square footage, has been compiled from publicly available information and is believed to be correct but not guaranteed. Bidders are encouraged to independently verify all information. 16. We reserve the right to verify the identity of all bidders. Bidding rights granted herein are provisional, and if complete verification is not possible, Redstone Auctions, at their discretion, may revoke the registration and terminate bidding activity. The Seller and Redstone Auctions reserve the right to preclude any person from bidding (and by extension, cancel their bids) if there is any question as to the person's credentials, mental fitness, use of offensive bidder/screen names, etc. Incidents of spamming, prior default, bid manipulation, interference, etc. are grounds for immediate bid revocation and account suspension. 17. In the event there are technical difficulties related to the server, hardware, software, or any other online auction-related technologies, power failure, inclement weather, or for any other reason at our discretion, Redstone Auctions reserves the right to extend bidding, continue the bidding as a live sale only, or close the bidding. NEITHER THE COMPANY PROVIDING THE SOFTWARE NOR REDSTONE AUCTIONS SHALL BE HELD RESPONSIBLE FOR A MISSED BID OR THE FAILURE OF THE SOFTWARE OR HARDWARE TO FUNCTION PROPERLY FOR ANY REASON. 18. When using the web site you must obey any and all local state and federal laws. Violations will result in termination of web site use privileges. Auction company employees, agents, affiliates and/or the auction company may bid on this auction. We gather aggregate information from this web site which may include but is not limited to: number of page visitors, most visited pages, number and amount of bids placed, any and all correspondence. Posted bid increments may be changed at any time without prior notice by the Auctioneer. 19. Buyer and or Bidder agree(s) to hold harmless and indemnify Redstone Auctions dba Redstone Family Realty, LLC, and its agents and representatives from any and all claims, damages or suits including but not limited to awards, judgments, costs, fees, etc. 20. The property is selling subject to any matters of survey. No new survey has been done. 21. The property is situated in the 100 year flood zone and flood insurance may be required. An elevation certificate was previously done and is provided for your information. 22. The current tenant pays $1250 per month rent on a month-to-month lease. As a condition of sale, the new owner will provide the tenant wtih no less than 60 days notice from the date of closing to either vacate the property, sign a new lease, or increase the rent.