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Fri 1 December 2017
Informal Tender closing at 12noon on Thursday 7th December 2017.
We are delighted to have had so much interest during the advertising of 12,13 and 14 Coronation Cottages. We have undertaken several open house events at the properties which have all received good levels of attendance from a mixture of different types of buyers whether it be landlords, developers or first time buyers. We are holding one final block viewing appointment on Saturday 2nd December between 1pm and 2pm. Please let us know if you can make it.
Here at the Craven Arms Office we are all very excited to see what offers will be received next week and who will be successful. But as we have been asked on a number of occasions, what actually is Informal Tender?
What does informal tender mean and what do we need to do?
As with all property sales, a buyer is required to make an offer for the property. Informal Tender requires an offer to be made in writing by a certain date. This means that as a buyer you need to put your best and final offer forward in letter form in a sealed envelope and ensure it reaches the agents before the deadline or close.
We suggest to everyone that when making an offer by informal tender to include details of which Solicitor you have chosen to act in the sale, to include proof of funds or mortgage certificates to verify your position and also to include copies of identification to comply with Anti-Money Laundering Regulations.
As is often the case, when property is offered for sale as a whole or in separate lots, you may decide to put more than one offer forward depending on the lot or lots you wish to buy. In this instance multiple tenders may be submitted.
Is it a binding contract?
The answer here is no. As the name suggests informal tender is an offer that is made, subject to contract, an informal offer as such. Therefore, should an offer be accepted by the seller, the Solicitors will then begin to prepare contract papers, searches and legal documents during the conveyancing process and the legal transfer of the property. Once the final sale contract is exchanged between the buyer and seller, the sale is then legally binding.
IMPORTANT – should a property be advertised by FORMAL TENDER, this then does create a binding contract on the acceptance of an offer. In these instances an offer is usually accompanied by deposit funds. Informal Tender does not require this.
What happens if my offer is not the highest?
One of the conditions of the tender process is that the seller reserves the right not to accept the highest nor indeed any offer that is made. With this in mind, quite often the position of the buyer can be of high consideration in accepting an offer. When comparing offers the ability of a buyer to raise the funds and the time in which it will take to get to completion can be equally as important.
As the tender process involves a deadline and a buyer is required to submit their best and final offer, we often see unusual bids of £121,500 or £267,901. This as buyers know that every penny counts when you have one chance and one chance only to put your offer in. I sold a smallholding this year by informal tender at a bizarre sale price of £305,501.
Detail detail detail. When a seller reviews the offers made the easier and clearer it is for them to understand the better. Potentially it will also increase the likelihood of your offer being read more than once.
When will we know if our offer has been accepted?
This is highly dependent on the sellers, for example if it is a company or organisation selling, it may need to be reviewed by the board of directors or shareholders. If it is an individual, you may know straight away. As a rule of thumb and in my experience, two to three business days on average.
At McCartneys we sell property by Informal Tender for single or multiple lots, Public Auction at one of McCartneys Collective Auctions offering numerous properties and traditionally by Private Treaty on a one to one basis. It really depends on what is being sold, the value of property and the levels of interest that are expected.
If you have any questions or would like to know more, perhaps you have something unusual to sell or are considering buying a property or may need a survey, you can rely on McCartneys professional and experienced estate and land agents, auctioneers, surveyors and rural professionals.
Good luck to everyone on Thursday!
Sam Wood, BSc(Hons), MRICS, MNAEA
Tel: 01588 672385