Auction Rules and Procedures

Auction
Rules and Procedures



Table Of Contents


1.Introduction

By using the Brixbid Auction Platform, Landlords and Renters agree to participate in an auction bidding process to determine the value of rent to be charged for a residential lease. Landlords agree to list properties on the site with detailed and accurate descriptions of their properties and their qualified tenant criteria and Renters agree to commit to renting properties based on a bid of what they are willing to pay in rent for the property per month. Landlords and Renters agree that by participating in the Brixbid auction process, they intend to be bound to a residential lease based on the auction outcome. Landlords and Renters are encouraged to seek the advice of an attorney prior to participating in the Auction Platform for legal counsel regarding explanation of lease terms and obligations.

2.Bidding Process

Timing of Auction
For each of its property listings on Brixbid, a Landlord establishes the opening date and time for accepting bids from Renters and the last date and time by which bids are accepted (“Auction Close Time”). Landlord shall abide by all such dates and times and shall otherwise act professionally, legally and not arbitrarily with respect to each listing and Renter.

Starting Acceptable Bid and Bidding
Each property listing has a minimum rental price established by the Landlord (“Minimum Rental Price”) which is the lowest bid that any Renter may bid for the particular property. The first bid by a Renter for a property must equal or exceed the Minimum Rental Price. If the Minimum Rental Price is not met by the Auction Close Time, Landlord is under no obligation to rent the Property to any Renter that bids in such auction.

Bidding is accepted for a Property while the auction for such Property is open and Renters may place a bid on a property that is higher than the current bid. Bidding continues until the close of the auction by Auction Close Time as originally designated by the Landlord. By placing a bid on a Listed Property, Renters agree that they intend to rent such property at the value of the bid they make. At the close of the auction the Renter with the highest outstanding bid is deemed the “Highest Bidder”.

Rent-it-Now Option
A Landlord also has the option of allowing bidders to bypass the bidding process and instead rent the Property for a set acceptable rent to the Landlord called the “rent-it-now” price that is higher than the Minimum Rental Price. Subject to the other terms herein, if a Renter selects the rent-it-now price, the auction will close and such Renter will be deemed the Highest Bidder.

Maximum Bid Function
When placing a bid, Renters have the option to make a maximum rental bid (the “Maximum Bid”) that the Renter would be willing to pay to rent a Property. If a Renter uses the Maximum Bid function, the Renter’s bid will automatically increase (without any action required by Renter to increase his or her bidding) in response to a competing higher bid up to the Renter’s Maximum Bid. Each bid increase will be in $25 increments up to the Renter’s Maximum Bid. A Renter’s Maximum Bid shall be maintained by Brixbid as confidential information and shall not be available to other Renters or the Landlord. For the avoidance of doubt, in the event that a Renter submits an erroneous Maximum Bid (e.g. a typographical error (such as $10,000 instead of $1,000), Company may, in its sole discretion, correct such Maximum Bid or withdraw Renters bid.

Naming Guarantors and Co-Lessees
When bidding on a Property, Renters also will have the option of identifying a guarantor and one or more co-lessees which must be done at some time prior to the close of the auction.

Outside Communications Prohibited
All bidding on a Property shall be conducted within the Auction Platform. To preserve the integrity of the Auction Platform, communications regarding value of rent of a listed property between Landlords and Renters outside the Auction Platform are strictly prohibited and constitute violations of the End User Agreements for Renters and Landlords and may lead to suspension or termination of the Brixbid Account. Parties receiving an offer or communication from another auction participant outside of the Auction Platform are required to report such communication to Brixbid.

Notwithstanding anything to the contrary in this Agreement, Brixbid may, if deemed necessary or appropriate, end an auction, withdraw a bid and/or withdraw a Property listing at any time prior to or after the Auction Close without liability to any Landlord, Renter or other third-party.

3.Post Auction and Procedures

Closed Auctions and Landlord Prequalification Screening
After the auction for a Property closes, the Highest Bidder will receive an email from Brixbid (“Highest Bidder Notification”) providing notice that he or she has the highest bid by the Auction Close Time. If the Highest Bidder had a guarantor and/or any co-lessees, each such individual will also receive the Highest Bidder Notification. The email will include a link and instructions directing each of the parties related to the Highest Bidder to provide information related to Landlord’s tenant screening criteria which will automatically include a credit check and eviction background check. If, however, a credit and eviction background check was previously performed on the individual within the prior thirty (30) day period (as a result of the individual bidding on an earlier Property listing or being listed as a guarantor or co-lessee with respect to an earlier bid), such previously performed check(s) will be used for purposes of the Highest Bidder’s current highest bid. In such instance, the Highest Bidder and such other individuals (as applicable) will not be required to pay an additional fee for a new credit and eviction background check.

If the Highest Bidder has listed a guarantor but the guarantor fails to complete the credit and eviction background check, or otherwise fails to complete the process, Landlord will be notified. Landlord will have the option, in its sole discretion, to consider the Highest Bidder’s bid without the guarantor and Landlord may accept the pre-qualifications of the Highest Bidder without the guarantor. If the Highest Bidder has listed one or more co-lessees but any such co-lessee fails to complete the credit, criminal and eviction background check, or otherwise fails to complete the process, the Highest Bidder’s bid will be rejected. Landlord will not have the option of leasing to such Highest Bidder.

Approval of Highest Bidders
Upon completion of the credit and eviction background check of Highest Bidder, guarantor and all co-lessees (if any), Landlord (and/or Landlord’s designated agent or representative for such listing) will be notified of the Highest Bidder’s bid, the credit score range of, and the results of the eviction check with respect to, the Highest Bidder and each of his or her guarantor (if any) and co-lessees (if any). The landlord shall then have 24 hours to make the decision to either accept or reject the Highest Bidder’s pre-qualifications to lease the Property. If Landlord accepts the Highest Bidder’s pre-qualifications for the Property, the Highest Bidder shall be notified of Landlord’s approval of the Highest Bidder’s prequalification criteria. After such approval, the Landlord will then be able to proceed with the criminal background check of the Highest Bidder and any co-lessees. In the event the criminal background check does not reveal information from which the Landlord would deny the Highest Bidder and the co-lessees then the Highest Bidder shall be deemed the Winning Renter and notification of approval will then be sent out to the Highest Bidder should this be Winning Renter?. The Winning Renter notification will include a link to the Residential Lease Agreement for review and signature via digital signature.

Although it is the Landlord’s decision whether to accept or reject a Highest Bidder, the Landlord must fully comply with all applicable laws, rules and regulations. If Brixbid determines that Landlord rejected one or more Highest Bidders or any of their guarantor and/or co-lessees (as applicable) despite such individual meeting or exceeding the credit score range originally requested by Landlord, and despite such individual otherwise being a qualified bidder where is this term defined?, then, Brixbid in its sole discretion may: (a) charge Landlord the Listing Deposit, (b) terminate Landlord’s landlord account, and/or (c) deny Landlord permission to use the auction platform or the website.

Landlord’s failure to accept or reject a Highest Bidder’s Bid within twenty-four (24) hours may result in the Landlord being charged the Listing Deposit for such Property listing.

If the Highest Bidder has submitted bids for other active property auctions on the Platform, those other active property auctions will remain active until the Highest Bidder is deemed the Winning Renter for the Property. Once a Highest Bidder is deemed the Winning Renter for a Property, all other bids that the Highest Bidder has submitted for other active property auctions on the Platform shall be deemed withdrawn.

Criminal Conviction History
In the event the Landlord does not approve of the Highest Bidder and the co-lessees based on the criminal background check revealing criminal convictions within the last three years then the Highest Bidder and the co-lessees will be given notice that they are not yet approved. Brixbid’s notice will also state that the Landlord will conduct an individualized assessment regarding the criminal conviction history in accordance with the Cook County Just Housing Act and that Brixbid can no longer facilitate the lease application with Landlord. Brixbid will also provide notice to the Landlord that Brixbid can no longer facilitate the lease application and that Landlord must contact the Highest Bidder and the co-lessees directly concerning the criminal background check and compliance with the Just Housing Act.

Runner-Up Bidders
If the Highest Bidder is not approved by the Landlord, the Property will be offered to the Renter with the next highest bid at the Auction Close Time (“Runner-Up Bidder”). The offer to the Runner-Up Bidder would arise either after the Landlord has denied the Highest Bidder in the prequalification screening including the credit check and eviction history check or it would arise after Brixbid has been notified by the Landlord that the Highest Bidder was not approved based on the criminal background check. The Runner-Up Bidder will receive an email via the Auction Platform allowing the Runner-Up Bidder to choose whether to affirm his or her last bid for such Property. (In the event the Landlord denies the Highest Bidder due to the criminal background check, the notice to the Runner-Up Bidder could take up to 10 days.) If the Runner-Up bidder affirms his or her bid, he or she will be deemed the Highest Bidder for such Property and he or she must complete (and his or her guarantor and co-lessees, if any, must complete) the credit and eviction background check and then the criminal background check and otherwise satisfy all obligations applicable to Highest Bidders as described herein in order to be considered the Winning Renter. If the Runner-Up Bidder does not wish to affirm his or her bid on the Property, the Property will be offered to the next Runner-Up Bidder and the same process described above will apply. The Property will continue to be offered to the next Runner-Up Bidder until either: (a) there are no more Runner-Up Bidders. If there are no more Runner-Up Bidders, Landlord may list the Property in a new auction on the Auction Platform.

If the Runner-Up Bidder affirms his or her bid on a Property, such Runner-Up Bidder will be deemed the Highest Bidder.

Landlord acknowledges and agrees that Renter’s bids may be withdrawn from Property auctions if: (a) such Renter is deemed the Highest Bidder on another Property auction; or (b) Brixbid determines that withdrawing a bid is appropriate under the circumstances. Examples of when Brixbid may determine that withdrawing bids is appropriate include instances when the Listing Materials submitted by Landlord are determined to be false, misleading or inappropriate or if Brixbid believes that information supplied by the bidder or the bidder’s guarantor or any co-lessee is false, inaccurate or inappropriate or if Brixbid believes that allowing a bid or auction to continue may expose Brixbid to harm, damage or liability.

Signing the Residential Lease Agreement
The Winning Renter Notification shall include a link to the Residential Lease Agreement for review and signature via digital signature. Brixbid uses a third-party vendor (currently DocuSign) for digital signature services. By using the Auction Platform, Landlord (and each Renter) agrees to execute Residential Lease Agreements by digital signature using DocuSign. If Landlord does not agree to sign the Residential Lease Agreement by digital signature, or if Landlord otherwise does not consent to use Docusign, Landlord shall not use the Auction Platform.

Each Winning Renter and any co-lessees and guarantors have twenty-four (24) hours to sign (via digital signature) the Residential Lease Agreement and corollary documents. Landlord is required to sign (via digital signature) the Residential Lease Agreement within twenty-four (24) hours after Winning Renter signs.

It is Landlord’s responsibility to ensure that digital signatures and DocuSign are acceptable and binding on Landlord and the Winning Renter.

Brixbid is not a party to any Residential Lease Agreement. Each Residential Lease Agreement is between Winning Renter and Landlord. Winning Renter must confirm for him or herself that the Residential Lease Agreement (including all riders to the Residential Lease Agreement) is acceptable. Renters will have the opportunity to review the full lease prior to bidding.

In no event shall Brixbid be deemed responsible or liable for the failure of any Winning Renter to return or sign a Residential Lease Agreement, for the results of any credit check or background check, for the cancellation of any bid, for the failure of any auction or rental to be completed, for any decision or statement or action taken by any Landlord, or otherwise for the act or omission of any Landlord, Renter or any other third party, or for the failure of any feature of the Auction Platform or Website to work properly.