Purchase and Sale

Question 1

What legislation do you need to be aware of when selling land or houses?

Question 2

What are the methods of sale?

Answer 2

Private treaty, Formal tenders, Informal tenders, auction

Question 3

Describe Private Treaty.

Answer 3

Private treaty is the most common method of sale. The advantages of this method are that it is flexible, relatively inexpensive, confidential, and there is no obligation for the vendor to sell until contracts have exchanged.

Question 4

Describe formal tender.

Answer 4

Formal tenders are relatively uncommon, being used primarily by public bodies to demonstrate accountability, and the process is generally costly. After a bid is accepted, contracts are immediately exchanged

Question 5

Describe informal tender.

Answer 5

Informal tenders, which are far more common, sometimes being used to draw a private treaty sale to a conclusion by inviting prospective buyers to submit best and final bids. Interested parties are asked to submit the required information by a certain date, and these returns are then opened in front of an independent witness

Question 6

Describe auction.

Answer 6

Auction sales tend to be used where a property is unique or cannot be priced accurately; for instance, when it is in poor repair, a quick sale is needed, there is high market demand, or there are serious defects. At auction, contracts are exchanged and a deposit paid when the gavel falls.