If you are buying or selling, you will have no doubt seen the term ‘tender’ pop up.
What does a tender sale mean?
Tenders are when prospective buyers prepare and submit confidential written offers to the property’s agent for the seller’s consideration. There is no reserve price, however there may be a price guide provided.
What will the sale and purchase agreement include?
- Your offer
- A deposit cheque (usually five to ten percent of the offer price) – the cheque will be returned if your tender is not successful
- Settlement dates
- Any conditions you are attaching to the offer
Can the property be sold before the tender closes?
The property can be sold before the tender closes IF it is clearly stipulated on marketing material. If this is the case, prospective buyers can register their interest with the agent and ask to be informed if someone else makes an offer before the tender date.
What happens after the tender due date?
The agent will provide all tenders to the seller who will then review all the presented offers and decide which, if any, they want to accept. The seller can reject all tenders if they choose to do so.
What happens if a tender is accepted?
Once the vendor accepts a tender the buyer goes into contract with the seller and can work through any conditions towards settlement.
What happens if a tender is rejected?
If a tender is rejected, the prospective buyer (the tenderer) is under no legal obligation and is free to pursue other purchase options.
The seller can seek to negotiate with unsuccessful tenders through the agent. It is up to the tenderer if they wish to do this.
Have more questions about tenders or any points to add to the list above? If so, please leave your comments below?