Following the title of the action is the recital that the property described in the advertised notice (a copy of which should be attached to the terms of sale) is being sold by the referee, naming him, upon certain terms which are then set forth. The first clause provides for payment of a deposit by the purchaser, usually not more than ten per cent. The second sets the r!ate, usually thirty days after, and the place of closing title, which is often the office of the attorney for the lienor. The time allowed enables the purchaser to examine the title. The third and sixth clauses prescribe the penalty in the event of default by the purchaser in taking title; the property may be resold, and he will be held for the expense of such resale and any difference between his bid and the amount bid on resale. The fourth clause provides for disposition of taxes, assessments and water rates. This differs from a contract of private sale in which it is provided that the seller pays all such as are due up to the date of closing title. Here the referee is only responsible for those which accrue up to the date of sale. He agrees either to pay them himself, or allow them if the purchaser pay them and produce receipts. By the fifth clause the purchaser agrees to sign and be bound by the terms of sale and to pay the auctioneer's fee. This expense is always borne by the purchaser.

If the property is being sold subject to any existing encumbrances they must be fully set forth in the seventh clause. If not, the purchaser may properly refuse to complete the sale. For example, if a second mortgage were being foreclosed, and the first mortgage were not recited as a lien subject to which the property was being sold, the purchaser would be entirely justified in claiming that he had intended his bid to be on a free and clear property.