MEMORANDUM OF SALE have this day of 191purchased the premises described in the above annexed printed advertisement of sale, for the sum of dollarsand hereby promise and agree to comply with the terms and conditions of the sale of said premises, as above mentioned and set forth.
Address 191 Received from the sum of dollars, being ten per cent on the amount bid by for property sold by me under the order in the cause. $ 1 The terms stated require the payment of ten per cent earnest money. The third and sixth clause state what happens when default is made by the purchaser. The fourth clause states that any existing liens at the time of sale, such as taxes, assessments and water rates, shall be allowed by the referee out of the pur chase money. Following the sixth clause is a space to be used for particulars of any limitations on the title. If the sale is subject to the lien of a prior mortgage, or subject to existing covenants and re strictions, this should be stated. When the sale is of the entire fee of the premises, as in the case of named (usually twenty days later), when the referee purchase price be paid to the referee at the time and place of sale, and that the balance of the purchase price shall be paid at the referee's office on a date a mortgage foreclosure, any limitations or encum brances that remain should be stated with as much care as in a contract of sale.
The property is struck down to the highest bidder, who signs the memorandum at the bottom of the terms of sale. / He receives a copy containing a receipt by the referee for the payment of 10 per cent of the amount bid.
8. Voluntary sales by auction.—The voluntary auc tion sale has more of the elements of a contract than an involuntary sale. Some voluntary sales are held by trustees, executors, or others acting in a fiduciary capacity; sometimes, at their own discretion, and sometimes carrying out the terms of a trust or a will. They may conduct such a sale in order to raise money to pay debts, or to raise money for division among the distributees. Such sales are frequently conducted by owners as a convenient and expeditious means of disposing of real estate. Many large tracts of land are retailed in this manner.
9. Protected voluntary sales.—When the sale is held by a trustee, or other fiduciary, it is understood that those who have interests in the proceeds may be present and make bids on the property to protect their interests. When the seller represents his own inter ests, and reaps all the benefits of the sale, he must either announce and advertise that the sale will be pro tected, otherwise it must be open, unrestricted and un protected. It is not fair to bidders to protect a sale which has been advertised as unrestricted, and if one finds that he has been led to raise his bid thru the ef forts of by-bidders or "boosters" he will be relieved of his contract, and can demand the return of his deposit. The seller must keep faith with those whom he has attracted to his sale, and cannot resort to fraudulent practices to gain higher prices. If the seller intends to protect the sale, he must announce it in advance. If he does not, and the prices bid do not suit him, he should withdraw the sale.
10. Terms of sale in voluntary auctions.—The terms of voluntary sale are similar to those used for an involuntary sale except that 10 per cent of the ac cepted bid is paid to the owner, the owner's attorney or the auctioneer. If the auctioneer receives it, he is con stituted the agent of the owner for that purpose. The auctioneer's receipt for this 10 per cent is usually required to be surrendered when the deed is delivered. Rents, interest on mortgages and fire insurance pre miums are adjusted on a voluntary sale, while they are not at an involuntary one.
11. Successful auction.sales.—LTsually no effort is made to interest the public in an involuntary sale. It is a perfunctory affair, the rights of the parties inter ested being adjusted by the sale. With a voluntary sale; the principal thing is to attract bidders. This is done by extensive advertising. Successful auction eers are persistent advertisers. The property and its advantages are brought before the people with reminders of the opportunities presented. Having attracted a crowd to the sale, the auctioneer's skill and personality are shown in the manner in which he draws out the bids.