1.2. Closed tender

The closed tender method has elements of the offer and negotiation method (open tender) and the auction process.

Closed tender explained

A closed tender is a method of buying a property through the process of private and confidential offers made by a set deadline.

You (the buyer) make a written offer (or bid) for the property which the vendor either accepts or rejects.

The vendor may accept the highest offer or decide to negotiate with any person who has tendered, or they could reject all the tenders.

You can put conditions in your tender, but it is common to check things out beforehand to reduce the conditions required and improve the attractiveness of your tender to the vendor. 

How to submit a tender

• Ask the real estate agent for details of the tender requirements.  This will tell you how the tender must be made and gives details like the expected settlement date.
  
• Discuss the tender requirements with your lawyer and prepare a written offer (your tender).   Remember to include any conditions that may be required.
  
• When you make a tender, you may need to include a deposit which is refunded (or returned) if your bid is not successful.
  
• If your tender is accepted and the conditions of your tender are satisfied, the contract will be binding.  

Next: Private sale Previous: Offer and negotiation (open tender)