Formal & Informal Tender Explained

Published: 06/03/2024 By Lucy Carnell

When it comes to selling land and property, large or small, there are several methods of sale available to you. In this article, Rural Surveyor Lucy Carnell explains the difference between Informal Tender and Formal Tender, two methods of sale commonly used in the disposal of rural and agricultural property.

Informal Tender starts with a six-week marketing campaign at the end of which is a deadline for tenders to be submitted. On the deadline, all tenders are opened with the vendor, at which point they are not legally bound to accept any or even the highest offer if they do not want to. If an offer is selected, both parties instruct solicitors, and the contract is negotiated. Once agreed, contracts are exchanged, a 10% deposit is paid, and a date is agreed for completion.  

Formal Tender follows the same initial process as Informal Tender, however, the contract forms part of a tender pack for all prospective purchasers to view during the marketing period. When a prospective purchaser submits a tender, they also submit a signed contract and pay the deposit. On the tender deadline, tenders are discussed with the vendor, and if a tender is accepted, contracts are then exchanged straight away. Again, completion follows thereafter by agreement. With a Formal Tender, therefore, everything is presented to the purchaser upfront, so the period from accepting an offer to completion is usually much quicker than with an Informal Tender.
 
When used in the right circumstances, both Informal Tender and Formal Tender are extremely effective methods of disposing of property. To find out more about these methods of sale and how they might work for you, please either contact Lucy in our Yeovil office on 01935 382901 or a member of our dedicated farm agency department (below) in your local Symonds & Sampson office for honest and professional advice.

Symonds & Sampson's dedicated farm agents offer a range of services to farmers and landowners. They are here to help you make the best decisions, ensuring that the buying, selling and managing of your most valuable asset is straight-forward and rewarding. For further details, please click here.

Image - 28.74 acres at Broadwindsor. Sold recently by Formal Tender. Guide £245,000

Meet our Farm Agents


Experienced Agents selling, buying and letting farms and land across the South and West of England

Andrew Tuffin


Partner, Head of Farm Agency
Frome Market, Sturminster Newton

BSc (Hons) MRICS FAAV


Department: Sturminster Newton Rural and Agricultural, Rural and Agricultural, Professional, Frome Market Rural and Agricultural, 
Speciality: Agricultural Tenancies, Agriculture BPS, Contract Farming, Development Land, Farm Business Tenancies, Farms and Land, Grass Keep, Probate, RICS Registered Valuer, RICS Valuer, Rural Grants and Subsidies, Tax Planning, Valuation, Valuations for Banks

01258 472244
07970 208825
atuffin@symondsandsampson.co.uk

Ross Willmington


Partner
Axminster

DipAgFM MRAC


Department: Axminster Rural and Agricultural, Rural and Agricultural, Professional
Speciality: Agricultural Tenancies, Agricultural Appraisals, Agricultural, BPS, Compensation, Compulsory Purchase, Easements, Estate Management, Farm Business Tenancies, Farms and Land, Grass Keep, Rural Grants and Subsidies, Tax Planning, Valuations, Wayleaves


01297 33122
rwillmington@symondsandsampson.co.uk

Will Wallis


Partner, Auctioneer
Dorchester, Frome Market, Poundbury Burraton House

MRICS FAAV

Department: Rural and Agricultural, Dorchester Rural and Agricultural, Frome Market Rural and Agricultural, Burraton Rural and Agricultural, Professional
Speciality: Agricultural Tenancies, Agriculture, BPS, Contract Farming, Development Land, Farm Business Tenancies, Farms and Land, Grass Keep, Probate, RICS Registered Valuer, RICS Valuer, Rural Grants and Subsidies, Tax Planning, Valuations, Valuations for Banks


01305 236572
wwallis@symondsandsampson.co.uk

Jack Edwards


Partner
Salisbury

MRICS FAAV


Department: Rural and Agricultural, Professional, Salisbury Rural and Agricultural
Speciality: Agricultural Tenancies, Agricultural Appraisals, Agriculture, BPS, Compensation, Contract Farming, Diversification, Easements, Estate Management, Farm Business Tenancies, Farms and Land, Grass Keep, Option Agreements, Planner, Probate, RICS Registered Valuer, RICS Valuer, Rural Grants and Subsidies, Valuations, Valuations for Banks, Wayleaves

01722 334323
07747 888385
jedwards@symondsandsampson.co.uk

Paul Heard


Partner
Tiverton

MRICS FAAV


Department: Agricultural Auctions, Tiverton Agricultural Auctions, Tiverton Rural and Agricultural, Rural and Agricultural, Professional
Speciality: Agricultural Tenancies, Agricultural Appraisals, Agriculture, BPS, Compensation, Compulsory Purchase, Contract Farming, Diversification, Easements, Farm Business Tenancies, Farms and Land, Grass Keep, Planner, Preparation of Plans for Land Registry, Probate, RICS Registered Valuer, RICS Valuer, Rural Grants and Subsidies, Tax Planning, Telecoms, Valuations


01884 218911
07800 913637
pheard@symondsandsampson.co.uk

Lucy Carnell


Rural Partner
Yeovil

BSc (Hons) MRICS 


Department: Yeovil Rural and Agricultural, Rural and Agricultural, Professional
Service: BPS, Compensation, Compulsory Purchase, Easements, Farms and Land, Grass Keep, Preparations of Plans for Land Registry, Probate, RICS Registered Valuer, RICS Valuer, Rural Grants and Subsidies, Valuations, Wayleaves


01935 382901
07940256550
lcarnell@symondsandsampson.co.uk

Jack Curnick-James


Senior Surveyor
Devizes

MRICS FAAV


Department: Rural and Agricultural, Devizes Rural and Agricultural, Professional
Speciality: Agricultural Appraisals, Agriculture, AMC, BPS, Compensation, Compulsory Purchase, Diversification, Expert Witness, Farm Finance, Farms and Land, Grass Keep, Planner, Probate, RICS Registered Valuer, RICS Valuer, Rural Grants and Subsidies, Tax Planning, Valuations, Valuations for Banks



01380 710535
jcjames@symondsandsampson.co.uk

Morgan Clement


Rural Surveyor
Wimborne

BSc (Hons) MRICS


Department: Rural and Agricultural, Wimborne Rural and Agricultural, Professional,
Service: Agricultural Tenancies, Agricultural Appraisals, Agriculture, Biodiversity Net Gain, Boundary Disputes, Compensation, Compulsory Purchase, Contract Farming, Development Land, Diversification, Easements, Farm Business Tenancies, Farms and Land, Grass Keep, Option Agreements, Options, Planner, Preparation of Plans for Land Registry, Probate, RICS Registered Valuer, RICS Valuer, Rural Grants and Subsidies, Tax Planning, Telecoms, Valuations, Wayleaves,
 

01202 882103
07751 609537
mclement@symondsandsampson.co.uk