Purchase & Sale

Question 1

Methods of sale

Answer 1

Private treaty
Formal tender
Auction
Informal tender

Question 2

Private treaty

Answer 2

Flexible, inexpensive 1% and private and confidential.
There is no obligation to sell.

Parties can withdraw-abortive costs.
May not achieve best price.
Slower and uncertainty.

Question 3

Formal tender

Answer 3

Sealed bids. Strong demand and binding. High level of public accountability. Only one chance to bid. Highest figure accepted unless rights reserved. Land and public contracts.

Question 4

Auction description

Answer 4

Quick. Certain. Transparent. Binding once gavel goes down. Best available price is secured. Good for distressed or unusual properties.

Higher fees 2.5% , no privacy, may not sell.

Question 5

Informal tender

Answer 5

Best bids. Multiple bids. Strong demand. No obligation to accept highest bid. Rest the market so uncertainty for buyer.

Question 6

Marketing boards planning permitted sizes

Answer 6

Town & Country Plannin 2007.

Resi
Flat board - 0.5sqm
V board - 0.6 sqm

Commercial
Flat - 2 sqm
V board- 2.3 sqm

Pp - conservation area, listed or illuminated.

Question 7

Sole agency

Answer 7

Single agent acts on the sale.
+lower commission
+no sale no fee
- binding contract on introduction
- less market coverage

Question 8

Sole selling rights v sole agency

Answer 8

Both are arrangements were a sole agent is engaged.

Sole agency
The agent will only be entitled to its fee if it introduces, or (if the contract permits), has negotiations with the eventual buyer while the agent’s agreement is in force.

Sole selling rights
The estate agent will be entitled to its fee if there is any disposal of the property while the agent’s agreement is in force, regardless of who found the buyer or had negotiations with them.

Question 9

What if you get two identical tender bids?

Answer 9

Recommend a 2nd round of bids.