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GENERAL BID INFORMATION

 

 

BID METHOD: Sealed Bid Sale

 

MIMIMUM BID: The State of California has agreed to accept all bids equal to or greater than the minimum bid. No bid below the minimum will be recognized.

BID REGISTRATION: In order to participate in this auction, a prospective bidder must submit a deposit of FIVE THOUSAND ($5,000.00) or ONE PERCENT (1%) of the bid amount whichever is greater, as a registration fee with the Bid Form.  The registration fee must be by cashiers check, certified check, or money order made payable to the State of California.  The successful bidder will use the registration fee as part of their THREE PERCENT (3%) total deposit. All unsuccessful bidders will be refunded their registration fee via certified mail within 10 working days following the bid opening.

 

BID AWARD: State shall have 10 working days to review all bids.  Bid award will be given to the highest "net" price to the State.  If State intends to award the bid, State will notify Buyer of such intent in writing by certified mail, return receipt.  State reserves the right to reject any or all bids and to waive any informality or irregularity in any bid, and to accept any bid deemed to be in the best interest of the State. 

 

DEPOSIT: The total purchase deposit represents THREE PERCENT (3%) of the actual bid.  The winning bidder will be required to pay the Escrow Holder the difference between the registration fee and an amount representing 3% of the actual bid amount within 45 days of the execution of the Sales Agreement and the removal of Buyer's contingencies, or the Bid award may be, at States option, awarded to the 2nd highest bidder.

 

TERMS: CASH, Buyer must submit verification of funds or a lenders conditional approval letter including buyer's credit worthiness with the bid submittal, if institutional financing is required. 

If a TERM Sale the State shall determine the highest net offer to the State. The State reserves the right to reject any terms other than cash. 

 

  ******Financing is the responsibility of the successful high bidder, together with all cost, including appraisal and loan fees, credit reports, points, title insurance premiums, surveys, documentary transfer tax, escrow and recording fees, and any other fees or charges. *****

 

SALES AGREEMENT:  Within 20 calendar days of notification of bid award by State, Buyer to execute the State Sales Agreement, as provided by State, with the agreed terms of the bid offer. If Buyer fails to execute State Sales Agreement within the 20 calendar day period, the transaction shall be considered voided and Buyer's registration fee shall be returned.  A copy of the State's Sales Agreement, "substantially in the form of" is provided on the State's Surplus Real Property website, dgs.ca.gov , under "Forms".  Buyer must be willing and able to execute a Sales Agreement substantially in the form the State's sales Agreement as provided on the DGS web site.

 

PUBLIC WORKS BOARD: Approval of the State Sales Agreement by the State generally requires authorization of the State Public Works Board at a duly noticed public hearing.  State's acceptance process typically takes thirty (30) to sixty (60) calendar days.  Hearings are scheduled after the Buyer has completed his due diligence and removed all contingencies. State will notify Buyer of the date, time, and location of the State Public Works Board hearing at which the Board will consider the transaction for authorization and acceptance.  Only when the State Public Works Board authorizes the transaction and State communicates such authorization and acceptance to Buyer in writing will the State be obligated to accept Buyers offer.

 

DUE DILIGENCE: The Due Diligence inspection period shall begin on the day Buyer executes the Sales Agreement.  The Due Diligence period shall continue for a period of 45 calendar days. Buyer must specify all proposed investigations and/ or studies in the Sales Agreement.  Buyer may waive all or a portion of the Due Diligence period by informing State of such waiver in writing.

 

RIGHT OF ENTRY: Prior to entry on the Property, Buyer must obtain a Right of Entry from State. State prohibits entry onto the property without an executed Right of Entry. Subject to the terms of the Right of Entry, the Buyer, its representatives, authorized agents, or contractors may enter on the property provided that Buyer keeps the property free of liens and repairs all damage to the property resulting from such inspection(s).

 

FORFEITURE OF DEPOSIT: The THREE PERCENT (3%) increased deposit is non-refundable after the 45 day due diligence period, if for any reason the Buyer fails to comply with any and all of the terms within the Sales Agreement or elects not to purchase the property.

 

WITHDRAWAL OF OFFER: If Buyer wishes to withdraw the offer, Buyer shall deliver to the State a written withdrawal no later than the last day of Buyer's due diligence review period stating that Buyer's inspections of the Property have disclosed a defect or defects in the Property and describing such defect or defects, with reasonable particularity. If State chooses not to remedy these defect(s), Buyer shall be released from any obligation to proceed with the purchase, and his registration fee will be returned. 

 

AS-IS PURCHASE: State will sell and Buyer will purchase the property on an "as-is with all faults" basis.  Buyer will be given the opportunity to inspect the property and review information and documentation affecting the property.  Buyers purchase will not rely upon any representation or warranties of any kind whatsoever expressed or implied, from State or its agents as to any matters concerning the property.  Buyer acknowledges that Buyer is purchasing the property solely in reliance on Buyer's own investigations.

 

DISCLAIMER: The properties have been identified as being potentially available for sale as state surplus real property. Upon finding that a property is not needed by any other state agency, and no local governmental agency has expressed interest (as is required under Sections 11011 (e) and11011.3 of the Government Code), the property shall be available on the open market.

 

All information provided is for general purposes only and is subject to change, without notice, from time to time. Nothing contained in the information provided is intended to be a binding representation. The State of California makes no representation as to the accuracy of the information, or as to the character, occupancy, or configuration of the property described in the brochure. It is the responsibility of the reader to independently verify all information for accuracy and completeness. 

 

BROKER'S COMMISSION: The State of California will not pay a broker's commission. Any Broker's commission fees will be paid by the successful bidder.