University-related properties sold by competitive sealed bid

Frequently asked questions

1. Why does the University sell its property by a sealed bid process?
2. What is a bid package?
3. What is the usual bid procedure?
4. Can I change the Offer to Purchase Form in the Bid Package?
5. How do I make a bid?
6. Can I send in a personal check and replace it if my bid is accepted?
7. If my bid is unsuccessful, when will I get my deposit back?
8. Can I have an inspection period after my bid has been accepted?
9. Do bidders need to be present at the bid opening?
10. How will I know if my bid was accepted?
11. Can I have my real estate broker represent me?
12. My broker says we need to use a standard Real Estate Purchase Agreement, is this true?
13. Can I find out in advance of the deadline for bid submission if any bids have been submitted and how much they were?
14. If I attend the bid opening, can I increase my bid at that time?
15. What happens if there are no acceptable bids received?
16. What happens if the only bid(s) received are less than the minimum bid?
17. If my bid is accepted, I understand my deposit "will be held outside of escrow." What does this mean?
18. Can I use my own escrow company?
19. Can I use my own title company to issue my title insurance policy?
20. What happens if two identical bids are received?

1. Why does the University sell its property by a sealed bid process?

   The University of California is governed by state Law which requires all  property that has been owned for current or future use by the University to be sold by competitive bid, with certain exceptions.  If  a property  qualifies under one of the  exceptions, the University may elect to offer the property by marketing the property through a conventional sale process. To review a copy of the law governing the bid process, please see "Stull Act".

2. What is a bid package?

   A Bid Package contains general information on the bidding procedure; property-specific information, a Bid Form(s) (Offer to Purchase); and a property investigation release form. The bid package is available from the listed contact person(s) for the property.

3. What is the usual bid procedure?

   Typically, the Offer to Purchase in the bid package and a cashier's check for the designated minimum deposit must be delivered by the deadline date to the address specified in the Bid Package. The Offer to Purchase will become the formal agreement for the purchase and sale if accepted by The Regents of the University of California or their designee. All bids are sealed; there is no provision for oral bids or oral overbids. Prior to submitting a bid, bidders must complete all of their investigations as bid sales are usually conducted on an as-is basis.

4. Can I change the Offer to Purchase Form in the Bid Package?

   No, the terms and conditions contained in the Bid Package are not negotiable and any alteration, such as the addition of any condition or contingency to the Bid Form may invalidate the bid.

5. How do I make a bid?
   

   A prospective buyer need only (i) complete the Offer to Purchase form in the Bid Package by filling in the blanks as indicated including their bid for at least the advertised minimum price, and executing the form; (ii) enclose a cashier’s check for the designated deposit amount; and (iii) deliver the bid in a sealed envelope by the stated deadline to the location specified on the form.

6. Can I send in a personal check and replace it if my bid is accepted?

   No, we can accept deposits only in form of a cashiers check for the required deposit; deposits submitted in any other form will invalidate your bid.

7. If my bid is unsuccessful, when will I get my deposit back?

   Any deposits received from unsuccessful bidders will be returned via U.S. Mail (certified, return receipt requested) promptly after the bid opening.

8. Can I have an inspection period after my bid has been accepted?

   Unless otherwise explicitly set forth in the bid package, all inspections must be completed prior to submitting a bid unless an alternate procedure is specified in the bid package.

9. Do bidders need to be present at the bid opening?

   No, bidders need not be present at the bid opening, but are welcome to attend or send their representative as the bids are opened in public at the time and place specified in the bid package.

10. How will I know if my bid was accepted?

    The successful bidder will be notified in writing promptly after the bid opening.

11. Can I have my real estate broker represent me?

    Yes. Payment of your broker for their services shall be as specified in the bid package and the Bid Form.

12. My broker says we need to use a standard Real Estate Purchase Agreement, is this true?

    No, the only acceptable agreement form is the Offer to Purchase form within the bid package. Submitting your offer on any other form of agreement may invalidate your bid.

13. Can I find out in advance of the deadline for bid submission if any bids have been submitted and how much they were?

    No, the bids are sealed until the public bid opening and no information is released regarding the number of bids received prior to the public bid opening.

14. If I attend the bid opening, can I increase my bid at that time?

    No, all bids are final. No increase in the bid amount is allowed at the bid opening. A bidder must make a bid which is their highest and best offer for the property.

15. What happens if there are no acceptable bids received?

    If no acceptable bid is received at or in excess of the minimum bid amount, the property will not be sold pursuant to the bid offering. The property will be reevaluated to determine if and when it will be then again be offered for sale.

16. What happens if the only bid(s) received are less than the minimum bid?

    Any bid at a price less than a stated minimum bid amount will be rejected.

17. If my bid is accepted, I understand my deposit "will be held outside of escrow." What does this mean?

    The Regents will retain your deposit until the bid is approved by The Regents of the University of California or their designee. You will receive credit in escrow in the amount of your deposit towards your purchase of the property. If you fail to perform a buyer’s requirement and closing fails to occur because of buyer’s failure to perform, the University may retain buyer’s deposit as liquidated damages.

18. Can I use my own escrow company?

    No, if The Regents specify in the bid package which escrow company is to be used, by submitting a bid, the bidder agrees to use the named escrow company. If no escrow company is indicated, you may select the escrow company. You may purchase your title insurance from the company of your choice.

19. Can I use my own title company to issue my title insurance policy?

    If the property being sold consists of one to four residential units, the bidder may select its own title insurance provider, as permitted by federal law. For other types of properties, the provisions of the bid package govern.

20. What happens if two identical bids are received?

    If two bids are received bidding the identical price for the property, and that price represents the highest price bid by any bidder, the first of those two bids received by the University is recommended for acceptance by The Regents or their designee.