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What is a closed tender?

Closed tender has elements of the tender process and the auction process.

You 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 the person whose tender they like best, 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, especially if there are other tenders.

 

How to submit a tender

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