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
