BidLion Service Agreement

BidLion: The abbreviated name of BidLion, LLC whose address is 10307 Piper Lane, Manassas, VA, 20110, U.S.A., and who is the owner and operator of BidLion.com.

User: A person who, upon registering with BidLion.com, has confirmed that he or she has read, completely understands, and is agreeing in full to the terms and conditions presented hereafter.

Listing: A property that is for sale and is being advertised on BidLion.com.

Seller: A person and/or User who owns the Listing being advertised for sale on BidLion.com.

Buyer: A person and/or User who is genuinely interested in and capable of purchasing a property listed on BidLion.com.

Listing Agent: A User who is licensed to practice real-estate in the state or jurisdiction of the Listing and is managing the Listing on BidLion.com.

Buying Agent: A User who is licensed to practice real-estate in the state or jurisdiction of the Listing that they bid on for the Buyer they represent on BidLion.com.

Bid: A non-binding communication made by a Buyer, or a Buying Agent on behalf of a Buyer, that represents the acceptable terms and price the Buyer is willing to use as a starting point in negotiation for the sale of a property listed on BidLion.com.

Offer: A Buyer's most recent Bid on a Listing.

Formal Offer: A traditional, binding real-estate offer made by a real-estate agent representing a Buyer to a Listing Agent representing a Seller via the standard local contact of the state or jurisdiction of a Listing on BidLion.com.

Private Offer Platform: BidLion's free Listing platform that allows a Buyer, or a Buying Agent on behalf of a Buyer, to submit a Bid on a Listing in private.

Competetive Bidding Platform: BidLion's patent pending net offer bidding platform that allows a Buyer, or a Buying Agent on behalf of a Buyer, to submit a Bid on a Listing in public.

Offer Period: A period of time, managed by a Listing Agent, that a Listing is accepting Bids on BidLion.com.

When a Listing Agent creates and publishes a Listing using the Competetive Bidding Platform on BidLion.com, they will be charged a $49.95 Listing Fee.

The Listing Fee is not applicable to Listings where the Seller wishes to take advantage of our Buyer's Premium feature, which is a premium service. As such, in these cases, the Listing Fee is waived and the Seller is responsible to pay a Premium Service Fee at settlement.

Some Sellers may choose to charge Buyers a Buyer's Premium. This premium is added to the purchase price of the property for the benefit of the Seller, who can designate, via their Listing Agent, a maximum Buyer's Premium of 10% for each Listing.

If the Seller directs their Listing Agent to apply a Buyer's Premium to their Listing, the $49.95 Listing Fee is waived and the Seller assumes responsibility to pay a Premium Service Fee of ½%(.005) of the purchase price ($699 minimum) to BidLion upon successful settlement.

BidLion's Premium Service Fee is ½%(.005) of the purchase price or $699, whichever is greater. The Premium Service Fee is paid by the Seller only upon the successful settlement of the real-estate transaction. If the real-estate transaction does not reach settlement, the Premium Service Fee is not due.

If the Seller does reach settlement, but is dissatisfied with the service provided by BidLion in connection with the sale of their property, they can request that the Premium Service Fee be waived for their real-estate transaction.

The Premium Service Fee shall be calculated by the Listing Agent and documented on the Premium Service Fee Addendum, which shall be forwarded to both the Seller and Buyer for signatures so that it may be included in the ratified contract. As a fee to the Seller, the Premium Service Fee shall be disclosed in the Seller's column of the HUD-1 Settlement Statement.

All agents using BidLion.com are responsible for preforming all duties relative to their role outlined below.

1. Seller Consent

   Before any Listing Agent may list a home on BidLion.com, they are required to gain consent from the Seller to create the Listing, are responsible to ensure the Seller is aware of the terms and conditions outlined herein, and agree to educate the Seller on the basics of BidLion's service, with special attention being paid to the following points:

   • BidLion's service is an online offer management tool that displays all offers and terms in the public view to create a competitive bidding atmosphere that allows Seller's to get the real market value for their property. As such, the Listing Agent will insert the language "The Seller is accepting all offers for this property through BidLion.com only" on the property's MLS listing page and will direct all inquiring parties to BidLion.com to submit their offers for evaluation per their Seller's wishes.
   • All Offers made on BidLion.com are non-binding for all parties involved.
   • Informal Bids are gathered during the Offer Period, the duration of which is set by the Listing Agent, who can stop the collection at any time.
   • Once the Offer Period has expired or the Listing Agent stops the Offer Period before expiration, the Offers collected are evaluated by the Seller to determine if any are acceptable.
   • If an Offer is made during the Offer Period that is deemed acceptable to the Seller, the Listing Agent will invite the winning bidder to make a formal, traditional offer via their standard, local real-estate contract.
   • If all Offers made during the Offer Period are deemed unacceptable to the Seller, the Seller can choose to reject the Offers and extend the Offer Period to gather more Offers.
   • The Seller may choose to deactivate their Listing and discontinue BidLion's service at any time.
   • BidLion does not charge the Seller any fee unless the Seller chooses to apply a Buyer's Premium to their Listing.
   • Sellers using BidLion's Buyer's Premium feature, which is a premium service, shall pay a Premium Service Fee of ½% of the purchase price ($699 minimum) when they reach settlement on the sale of their property.
   • If a Seller utlizing the Buyer's Premium feature does not reach settlement on the sale of their property, then the Premium Service Fee is not due.
   • If a Seller utlizing the Buyer's Premium feature does reach settlement on the sale of their property, but they are dissatisfied with our service, they can decline to pay a portion or all of the Premium Service Fee.
   • The BidLion offer platform allows Seller's to place limits on acceptable bids to prevent unsuitable Buyers from bidding on their property. For example, Sellers of a distressed property can restrict financing so FHA and USDA buyers cannot compete for the property since their financing would not allow them to purchase the property anyway.
   • Sellers may also set a minimum bid price and place restrictions on the amount of money Buyers can request for seller subsidy and home warranty. These are restrictions that will prevent Buyers from making Offers that are not in line with what the Seller views as acceptable terms for a deal.
   • BidLion has created an optional tool for the Seller called the "Seller's Addendum," which allows the Seller to express changes they are seeking to the standard contract before the Buyer is determined and invited to make a Formal Offer. This allows the Seller to create leverage by using the acceptance of their terms as another way Buyers can separate themselves from the competition during the competitive bidding process. For example, a Buyer with an offer similar to a competing Buyer can make their offer more attractive to the Seller if they agree to accept the Seller's terms outlined in the Seller's Addendum and the competing Buyer chooses not to.
   • In the event the Seller chooses not to participate in BidLion's Free Appraisal promotion to establish the current value of their property, BidLion has created a tool for the Seller called the "Appraisal Addendum," which allows Buyers to express their willingness and/or capability of purchasing the property at the agreed upon purchase price, should the property appraise for less after contract ratification. This addresses a very real possibility that could destroy a real-estate deal and allows the Seller to make an informed decision during the evaluation process, knowing what they can expect from all candidates should this scenario unfold, which may ultimately impact who the Seller invites to make a Formal Offer.
   
   
2. Buyer Awareness

   Before any Buying Agent may bid on a BidLion.com Listing on behalf of their Buyer, they are required to disclose to that Buyer that the details of all Offers made on their behalf will be displayed in the public view. They must also educate the Buyer on the basics of BidLion's service, with special attention being paid to the following points:

   • BidLion's service is an online offer management tool that displays all Offers and terms from all Buyers in the public view to create a competitive bidding atmosphere that allows Sellers to get the real market value for their property.
   • Offers made on BidLion.com are informal and non-binding for all parties involved, meaning no deposits from Buyers are required.
   • Offers are gathered during an Offer Period, the duration of which is set by the Listing Agent in accordance with the Seller's wishes.
   • The Seller may elect to stop the collection at any time before expiration and invite the prospective Buyer with the most attractive bid to make a Formal Offer.
   • Because the Seller can close the Offer Period and choose a winner at any time before the Offer Period expires, Buyers who wait to submit their best and final offer risk losing out to a leading competitor at any moment.
   • Once the Offer Period has expired or the Listing Agent stops the Offer Period before expiration, the Offers collected are evaluated by the Seller to determine if any are acceptable.
   • If an Offer is made during the Offer Period that is deemed acceptable to the Seller, the Listing Agent will invite the winning bidder to make a traditional, Formal Offer via their standard, local real-estate contract.
   • If all Offers made during the Offer Period are deemed unacceptable to the Seller, the Seller can choose to reject the Offers and extend the Offer Period to gather more Offers.
   • BidLion does not charge Buyers a fee for the use of BidLion's service.
   • BidLion allows Sellers to attach a Buyer's Premium to their Listing as high as 10%, which is then included in the purchase price of the property for the Seller's benefit. In other words, it is a fee paid by the Buyer to the Seller.
   • The Buyer's Premium is a tool that allows Sellers to transfer some or all of their cost of the real-estate transaction to the Buyer.
   • Buyers dissatisfied with a Buyer's Premium charge being attached to a Listing of interest can mitigate the charge by adjusting the amount they offer for the property downward. However, they should do this understanding they are increasing the likelihood that the Seller rejects their offer.
   • Prospective Buyers may bid on Listings, but not before they have registered, their agent has registered, and their agent confirms their relationship and finacial qualifications via their account profile.
   • When confirming a relationship with a prospective Buyer via their account profile, the Buying Agent is required to disclose this Buyer's financial qualifications before they are able to bid on this Buyer's behalf.
   • A Buyer's financial qualifications are not made public by BidLion and are required for the sole purpose of verifying that the prospective Buyer and their agent are serious and capable participants.
   • A Buyer, or their Buying Agent, can choose to disclose the Buyer's financial qualifications to the Seller and Listing Agent by attaching a letter regarding those qualifications to any bid in an attempt to influence the Seller.
   
   
3. Listing Creation

   After a Listing Agent has received a Seller's consent to manage all offers for their property through BidLion.com, the Listing Agent must create and publish the Listing via the "Listings" tab on their account page.

4. Listing Status Management

   Listing Agents are responsible for updating the status of active Listings in all circumstances except immediately following the expiration of a Listing's Offer Period. Upon expiration, one of the following automatic events will occur:

   • If the Offer Period expires and there are no Offers on the table, the Offer Period will be automatically extended for 7 days as a convenience to the Listing Agent, who may choose to adjust the duration later at any time.
   • If the Offer Period expires and there is an Offer on the table, the Listing status will be automatically changed to "Pending" as an indication to participating bidders that the collection has ended and a decision from the Seller on existing Offers is forthcoming.

   If an Offer Period expires and follow-up negotiations break down, thus making all existing Offers on the table unacceptable to the Seller, it is the responsibility of the Listing Agent to remove the "Pending" status from the Listing and extend the Offer Period for a duration of their choosing.

   If an Offer Period expires and follow-up negotiations are successful, resulting in contract ratification, it is the responsibility of the Listing Agent to change the "Pending" status of the Listing to "Under Contract."

   Finally, if the Listing successfully reaches settlement and the real-estate transaction is concluded, it is the responsibility of the Listing Agent to change the "Under Contract" status of the Listing to "Sold."

   In the event the Listing Agent or Seller wish to discontinue the use of BidLion's service, the Listing Agent is required to change the Listing status to "Deactivated."

5. Premium Service Fee Addendum

   Upon contract ratification, it is the Listing Agent's responsibility to download and complete BidLion's Premium Service Fee Addendum and ensure it is signed by the Seller, forwarded to the Buying Agent to be signed by the Buyer, and forwarded to the settlement company to be included as an expense on the Seller's side of the HUD-1 Settlement Statement. It is also the Listing Agent's responsibility to provide BidLion with an advance copy of the signed Premium Service Fee Addendum within 7 days of contract ratification.

   Upon receipt of the Premium Service Fee Addendum from the Listing Agent after contract ratification, it is the Buying Agent's responsibility to ensure it is signed by the Buyer and returned to the Listing Agent within 5 days.

Bidlion expects all Users to use BidLion.com in an honest and professional manner. Users submitting information of an inappropriate nature or information intended to damage the system process, create service loss or disruption, create a legal liability or engage in fraudulent acts will be banned indefinitely.

Users are encouraged to contact BidLion immediately to report any improper use should they become aware of other Users committing any of the aforementioned abuses.

BidLion reserves the right to limit or ban any User from the use of BidLion.com for any reason at BidLion's discretion.

BidLion does not represent any Seller, Buyer, or agent in any capacity and does not make any express or implied warranty, promise, or guarantee that a Buyer or Seller will buy or sell a home using BidLion at any particular price or terms. BidLion.com is simply an information management and advertising platform that allows Users to share their information in the public view. As such, BidLion makes no guarantee as to the accuracy, credibility, or reliability of the information, content or materials maintained on BidLion.com by its Users. All information provided by a User to BidLion.com is the responsibility of the User.

BidLion does not make any express or implied warranty, promise or guarantee regarding the reliability of service on BidLion.com. BidLion.com may at times experience periods of interrupted service or malfunction. Thus, Users agree to use BidLion.com at their own risk and agree to hold BidLion harmless for any effect caused by service disruption or malfunction.

BidLion reserves the right to change the terms of service and the amount of any fee or compensation mentioned in this agreement as a result of regulatory changes, competitive pressures, business model changes, or for any other reason, in the future at any time at BidLion's discretion.