The Sales Process: Auctions, Tender, Multi-Offers and Sale and Purchase Agreements
What this domain tests
Auctions, tender, multi-offer situations and sale and purchase agreements. The exam tests process, authority and fair treatment of buyers.
Auctions and tenders
- Auction: public process; contract formed on the fall of the hammer; usually unconditional; deposit normally 10%; vendor bids must be announced; if reserve not met, property passed in.
- Tender: written offers by a deadline; vendor may accept, reject or negotiate; conditions are common.
Multi-offers and sale and purchase
- When multiple offers exist, tell all interested buyers consistently, present all offers, and use written multi-offer acknowledgements; do not reveal one buyer's price to another without authority.
- Sale and purchase agreement: standard form; conditions (finance, LIM, building report, solicitor approval); deposit; settlement; chattels; GST.
Worked example
Two buyers submit offers. One asks, 'What did the other offer?' Reasoning: you should not disclose the other buyer's confidential offer. You can explain the multi-offer process and that the vendor will consider all offers. Present both offers to the vendor and take written instructions. Disclosing the amount to help one buyer improve could breach confidentiality and fair-process duties.
Traps
Treating an auction sale as conditional. Accepting a tender after the deadline without vendor instructions. Running a multi-offer process without telling all buyers. Forgetting that deposit and settlement terms are negotiated, not automatic.