Once a Ten-X auction concludes, there are two phases that winning buyers must complete before it’s time to 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 to ensure you will be prepared for what happens after the auction!  

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 is now 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. 

Looking for next steps after selling a property on Ten-X? Read our Ten-X Guide to Seller Contracting & Closing.