Once a Ten-X auction concludes, winning buyers and successful sellers must each complete two phases before they can celebrate their real estate transaction.  

If you plan to participate in a Ten-X auction, take the time to review our easy contracting/closing guide for buyers and sellers to ensure you will be prepared for what happens after the auction!  

Next Steps for Buyers

Phase 1: Let’s get the property under contract! 

1. The winning buyer receives the Purchase and Sale Agreement (PSA).
   Ten-X will use the information the buyer provided during the registration process to circulate the contract automatically.
2. The winning buyer has 2 hours to electronically sign the PSA.
   Per our Participation Terms, the buyer must electronically sign within 2 hours of the PSA being sent.
3. The winning buyer wires the Earnest Money Deposit (EMD).
   Once the seller has countersigned the PSA, the buyer must wire the EMD on the first business day by 5:00 pm in the time zone where the property is listed. The buyer can find wire instructions within the PSA package.
4. Escrow acknowledges the full PSA ratification and receipt of the EMD.
   The assigned escrow officer will notify the buyer and seller that they are now under contract. Congratulations! 

Phase 2:   It’s time to close! What happens next? 

1. Provide buy side broker information.
   If the buyer is using a buy side real estate broker in the transaction, please ensure the escrow officer has his/her license and contact information. The buy side broker is responsible for providing their invoice to the escrow officer.
2. Provide all entity documents.
   If a Special Purpose Entity (SPE) or any other entity will be taking title, ensure the escrow officer has all the necessary formation documents related to the entity being utilized. An assignment may be required if the buyer executed the PSA as an individual and now plans to use an entity to close.
3. Provide lender and/or 1031 exchange intermediary information.
   This will allow the escrow officer to gather any necessary lender or intermediary requirements for closing.
4. Be mindful of prorations.
   Be aware of the prorations as per the PSA and or the jurisdiction the property resides in. Real estate prorations refer to the allocation of expenses or income between the buyer and seller of a property, based on the portion of time each party owns the property during a given accounting period. For more information, visit our Prorations Overview.
5. Sign all closing documents.
   Be prepared to sign all documents promptly as required by the escrow officer. Delays can impact prorations, loan applications, and most importantly the close of escrow date. If the purchase involves a branded hotel, please ensure all necessary franchise agreement documentation is filed in a timely manner.
6. Line up the leasing agent.
   If the property being acquired has vacant space to be leased, it is best to line up a leasing agent to assist in finding appropriate tenants.
7. Line up property management.
   If third-party property management is needed, consider options of utilizing the in-place team or engaging a new firm. The selected property manager should be ready to transition vendor contracts to the new ownership and send tenant direction letters announcing the sale of the property and where the tenants should send rent going forward.
8. Submit the wire for final funds and provide authorization to close.
   The close of escrow date is here. Final funds should be sent, along with a final review of the settlement statement and authorization to close.
9. Congratulations!
   The property has closed! As you celebrate this successful transaction, we hope you consider Ten-X to find your next investment.

Next Steps for Sellers

Phase 1: Let’s get the property under contract! 

Execute the PSA.  

Once the buyer has signed the PSA, the seller will also need to electronically execute the PSA in a timely manner so the transaction can move into escrow.

It is critical for the seller not to delay in executing the PSA, as the time for the buyer EMD does not start until the seller countersigns the PSA.  

Phase 2: It’s time to close! What happens next? 

1. Provide a payoff statement or letter.
   The seller needs to provide any loan payoff letter/statement from their lender that will be paid off in escrow.
2. Provide listing broker information.
   Please ensure the escrow officer has his/her license and contact information. The broker is responsible for providing their invoice to the escrow officer.
3. Provide all entity documents.
   If the seller currently holds title as an entity, please make sure the escrow officer has any related formation and authority to bind documentation related to the entity conveying title. A full list of requirements can be found in Schedule 1 of the title commitment.
4. Provide any original deeds or title policies.
   Simply as a means of expediting the process, any original deeds or prior title policies will assist the escrow officer in validating the parcel’s correct legal description.
5. Be mindful of prorations.
   Be aware of the prorations as per the PSA and or the jurisdiction the property resides in. Real estate prorations refer to the allocation of expenses or income between the buyer and seller of a property, based on the portion of time each party owns the property during a given accounting period. For more information, visit our Prorations Overview.
6. Carry out seller obligations.
   Prior to closing the seller shall maintain and, to the extent within the seller’s reasonable control, operate the property consistent with past practice.  The seller shall cooperate with the buyer to allow the buyer to obtain responsibility for and maintain access to applicable utilities. The seller shall also comply with the terms of the leases and shall not enter into, terminate, or amend any lease without the buyer’s written consent.
   At closing, the seller shall relinquish possession of the property to the buyer and provide the buyer with all keys, codes, and other means of access to the property.
7. Sign all closing documents.
   Be prepared to sign all documents promptly as required by the escrow officer. Delays can impact prorations, loan applications, and most importantly the close of escrow date.
8. Provide wire instructions for proceeds.
   Please ensure the escrow officer has the correct wire instructions for timely dispersal.
9. Congratulations!
   The property has closed! Our partnership with sellers is critical to the success of our auctions, and we hope you consider Ten-X for your next transaction.