There are several different ways to buy or sell a house. If you’re new to the process of selling or buying of haven’t experienced a particular kind of sale process before, the terminology can be confusing.
If you have any questions about the kind of the sale process that might be best for you or about how a property is being sold that you’re interested in buying please get in touch with us and we will be happy to explain it to you.
When a seller offers their property by tender this means that potential buyers prepare and submit confidential written offers for the property to the agent for the seller’s consideration.
There is no reserve price. This means that potential buyers don’t know the lowest price the seller is willing to accept. There may be a price guide, but buyers are able to offer less than this.
Marketing materials for a property must make it clear if the property can be sold before the tendercloses.
Prospective buyers can register their interest in a property with the agent and ask to be informed if someone else makes an offer before the tender date. They then have the option of making an offer too.
Ask us for a copy of the tender documents. Read them carefully, including conditions or amended clauses. You will be asked to fill in a sale and purchase agreement and submit it before the close of the tender. Get your lawyer to check it before you sign.
A tender is a legally binding contract and you cannot simply change your mind after it has been signed. There will be a deadline for tenders to be submitted. Usually tenders are submitted at the real estate agency’s offices.
The agent will provide all tenders to the seller. The seller considers the offers and the conditions they contain and decides which offer, if any, they want to accept. The seller can reject all the tenders.
The buyer is now in a contract with the seller and can work through any conditions towards settlement.
The prospective buyer (the tenderer) is free to pursue other purchase options. There is no legal obligation between the two parties.
The seller can seek to negotiate with any unsuccessful tenderer with the aim of reaching agreement on a sale/purchase. It is up to the tenderer if they wish to do this. This process is conducted via the agent if both parties wish to negotiate.