In any sale of real property, there must be a written contract. In a private sale the contract is prepared and signed by the parties after their negotiations have led to an agreement. Upon a sale at auction there is obviously no negotiation, the auctioneer offering the property, asking bids, and selling to the highest bidder. So that the prospective bidders may know upon what they are bidding, terms of sale are prepared and read by the auctioneer before the property is offered. These terms of sale, usually prepared in duplicate constitute the contract. The following is the usual form, with the blanks filled in.

..............COURT, ..........COUNTY

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Terms of Sale.

The premises described in the annexed advertisement of sale, will be sold under the direction of..................Referee, upon the following terms:

Dated,..........................191

1st

Ten per cent of the purchase money of said premises will be required to be paid to the said Referee, at the time and place of sale, and for which the referee's receipt will be given.

2nd

The residue of said purchase money will be required to be paid to the said Referee at his office, No.................in the Borough of............

City of New York, on or before the........day of.................191...

at..........o'clock M., when the said Referee's deed will be ready for delivery.

3rd

The Referee is not required to send any notice to the purchaser; and, if he neglects to call at the time and place above specified to receive his deed, he will be charged with interest thereafter on the whole amount of his purchase, unless the referee shall deem it proper to extend the time for the completion of said purchase.

4th

All taxes, assessments and water rates duly confirmed and payable which, at this date, are liens or encumbrances upon said premises, will be allowed by the Referee out of the purchase money, provided the purchaser shall, previous to the delivery of the deed, produce to the Referee proof of such liens, and duplicate receipts for the payment thereof.

5h

The purchaser of said premises or any portion thereof, will, at the time and place of sale sign a memorandum of his purchase and an agreement to comply with the terms and conditions of sale herein contained, and pay, in addition to the purchase money, the auctioneer's fee of fifteen dollars for each parcel sold and salesroom fee of two dollars for each knockdown.

6th

The biddings will be kept open after the property is struck down; and in case any purchaser shall fail to comply with any of the above conditions of sale, the premises so struck down to him will be again put up for sale under the direction of said Referee, under these same terms of sale, without application to the Court, unless the Plaintiff's Attorney shall elect to make such application; and such purchaser will be held liable for any deficiency there may be between the sum for which said premises shall be struck down upon the sale and that for which they may be purchased on the re-sale, and also for any costs or expenses occurring on such re-sale.

7th

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........................Referee.

Memorandum of Sale

...................have this...........day of..........191... purchased the premises described in the above annexed printed advertisement of sale, for the sum of............................dollars.......................and hereby promise and agree to comply with the terms and conditions of the sale of said premises, as above mentioned and set forth.

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Address.......................

..............191... Received from............................the sum of

................................dollars, being 10 per cent on the amount bid by................for property sold by me under the order in the cause.

$....................................

After the bids have been closed the successful bidder signs the memorandum on one copy which is kept by the officer selling, who in turn receives the deposit and after signing the receipt gives one copy to the purchaser. Each party then has the signed obligation of the other, and the subsequent course of the transaction is, in the main, similar to a private sale, except as the provisions in the terms of sale differ from the usual contract on a private sale.