The “formal tender” method of land sale invites offers by a firm closing date. Prospective buyers are supplied with a comprehensive legal pack with a specified exchange date on decision. Offers are returned in a sealed envelope, stating the contract to which they relates, but unmarked as to its sender. The offer envelopes are then opened together at the published date/time.
As soon as the “best bid” is selected, the bankers draft is accepted and contracts are automatically exchanged. The successful bidder is then committed to the contract and will have to complete the sale on the appointed date.
Formal tenders are rarely used in English and Welsh land sales. Their use usually denotes a complex sale of some description be that:
- An institutional sale
- A probate sale
- Land in trust
- Charity ownership
- Complex multiple ownership