process of real estate tender

Q1) The process of real estate tender is a method of buying property through the process of private as well as confidential offers within the stipulated timeline. The general set deadline of a typical tender campaign is about 25 days. The general methods for promoting a property lies by advertising in the local as well as national media including print and social media in order to avail offers for target customers, the price quoted for the overall process of the tender determination is known as the Tender price and is mainly determined through ascertained on the basis of previous cost sheet or production account. Submission of the tender is done by orientating adequate documents as well as factsheets that supports the bedded tender price along with presentation of theme. In cases of major complexities, questions are also asked in responses as per the buyer’s requirement.

Q2) No, the buyer cannot specify these terms in the process of submitting a tender. This will hamper the overall process integrity as well as confidentiality of the process.

Q3) Advantages of selling properties by tender:

Selling properties through tender makes it tough for comparison of the related prices of similar properties as there is no listed selling price.

Potential buyers need to make bids according to the overall process of confidentiality as they are unaware of the other buyers’ bids.

The seller has full control of the selling process.

Tender does not require town or more than two properties for pricing the tender. However, the same is not applicable in the case of the Auctions which require a minimum of two bidders for execution of the process.


Due to the confidentiality of the builds, lower buy calls is also prevalent leading to loss from the seller’s side.

The process of negotiation does not exist as the buyers and sellers are obliged to make the move as according to the tender status.

Intense advertising is necessary for the program success as well as execution.

Q4) The closing date and time as mentioned in the particulars and conditions of sale of real estate by tender form refer to the last dates for submitting the tender application for the concerned property.

Q5) Tender Acceptance date as mentioned under clause 2.7 of the particulars and conditions of sale of real estate by tender refers to the date of tender acceptance by the seller. Prior to the prices of acceptance date. The prospective buyers of the property cannot withdraw their tenders. The process can result in the implication of the overall qualification of the tenders. The Acceptance date of the tender is after five working days of the Closing date and time.

Q6) Delivery Address for the Tenders refers to the address for the tender delivery. The process of applying the tenders to the particular sellers needs to be same in closed envelope at the delivery address for proper consideration under tender process of the concerned property/goods.

Q7) The process of opening of the tender by the vendor before the closing time and date is not allowed. For any given case, the process of the opening of the tender is allowed to take place only in front of the bidders after the closing date and time so as to maintain transparency of the process. Any type of unethical practice by the seller can lead to disqualification of the whole tender bidding process Thus, it is necessary to maintain proper legal steps transparency of the process during the procedure. Along with this, it is also said that the overall process of opening up of tender is clear violation of the Fair Trading Act, 1986.

Q8) As per the given case scenario, the overall process of tender condition and involvement of Dean is totally illegal. Dean engaged in illegal activities for getting high bid for the vendor by opening up the contract prior to the closing time and date. This process is a clear violation of the Fair Trading Act, 1986. As per the given case study, the overall process of the conduction of misinterpretation in the bids is a clear violation of the Section13 of the Fair Trading Act, 1986.

Q9) As per the Real Estates Agent Act, 2008 the overall process of the implication of the various sections are as follows:

Section 126: No entitlement of commission without the agency agreement. This refers to the fact that any agent is not entitled to any kind of commission for the work done for the client unless the whole process is compiled through an agency agreement. Along with this, the agent is obliged to provide an agency agreement copy to the client within 48 hours of the signing of the whole process.

Section127: This section implies the action of the process of the agency agreement requires the proper presentation of the sales guide. An agent is not supposed to enter any contract with the vendor without the a. provisioning of a particular guide as well as b. Acknowledge for receiving a proper signed form for the receiver of the approved guide. Dena has complied with the above-mentioned section of 126 by providing a carbonised copy of the agency agreement to the vendor. However, the obligation of Section 127 under the Real Estates Agent Act is not proven, Hence, it can be said that Dean has breached the Section 127 of the Estates Agent Act.

Q10) The process of Clause 2.6 of the Particulars and Conditions of the Sales of the Real Estates by Tender states that all tenders including their identity is supposed to be kept confidential under the process of the legislation. The confidentiality of the statistical data as well as identity of the tender will not be divulged to any other tender as well as to any other third party as per the Real Estates Institute of New Zealand incorporated. Dean has breached this process of Clause 2.6 by informing about the tender price as well as the identity of the tender to his friend who was also interested in buying the same property impacting non obligation of the Clause 2.6 of the Particulars and Conditions of the Sales of the Real Estates by Tender.

Q11) In case of any misrepresentation of the property by the vendor inducing unconditional contract to the purchase will include serious implications of the Section35 of the Contract and Commercial Law Act, 2017. As per the legislation of the same, the purchaser is entitled to damages by the tender make as well as the termination of the contract in cases of severe misrepresentations leading to the induction of the contract by the purchaser again as per the section 37 of the Contract and Commercial Law Act, 2017 the party is able to cancel the contract in cases of severe misinterpretations of the property whether innocent or fraudulent.

Q12) Auction can be defined as the fast pace property sale of the concerned area or landmark to procure benefits. Generally, the overall process of the auction takes 5-6 days for better exposure to the prospective candidates for buying the property. As per the course book, the overall process takes usually four-week period for potential purchasers to make a quick decision and heavily promoted by heavy marketing. The overall finishing process of purchasing a property or a real restate needs to take more than 2 to 3 months. In this time interval, both the parties need to maintain the legal procedure which is important for execution of the entire process. The process of pricing for the auction starts as per the real valuation of the property or with the general money for procumbent required by the vendor or the seller. In terms of the same, it is also required to be mentioned that the process of the auction pricing gradually rises with the highest bidder getting the property in the whole process of the auction. The Auctioneer must include all the details of the process of property auctioning as well as the whole detail of the propeller to be auctioned include all the belongings within the property that are going to be auctioned. The reserve price is defined as the minimum amount in which the seller wants to sell the property to potential buyers. In case, the overall process of reserve price is not met, the seller is not required to sell the property even to the highest bidder.

Q13) The advantages and disadvantages of property selling through an auction is listed below: Advantages

Properly selling auction can be highly beneficial for the seller as they can access the bidding process according to the current market price. However, in a slow price of market, seller can sell the property as basis of current market price as soon as possible.

The process of auction can be highly beneficial for eliminating the higher selling price such as interest, taxes by evaluating particular time and date.

Auction is also advantageous for allowing setting the terms as well as conditions of sale and also maintains the property during the process.

The seller can save time by conducting an auction

Buyers cannot back out in the last moment after the bid is accepted.

The purchasing as well as the closing dates of the auction is publicly known


The selling process of auction are going to be limited for the buyers those who are interested to proceed immediately. Competitive bidding process causes less interest from the side of potential purchasers.

Cost of selling in the auction may exceed the overall costs of selling through an estate agent. How can this be? The auction sale is conducted through an agency.

Q14) As per the given case study of Graham, the person has not obliged to some sections of the REINZ best practice guide for auction. As per the guide, the agent has not obliged to the following clauses

1.1: The Process of the sale of the property through an auction should not include any kind of misleading or deceptive action that manipulates the pricing of the property. Hence, Graham’s conduct is not acceptable.

3.1: As per the same clause, the seller is required to conduct the auction with full integrity and in compliance with all the laws and legislations of the New Zealand government.

B. Yes, a breach of the Fair Trading Act 1986 was noticed under the conduction of the process of the auction conduction. By graham, the process of the auction is a breach of the act under Section 14a.

C. The implication of the process depends on the integrity of the auctioneer. If Graham has done the same, the process of the auction would have been considered as null and void.

Q15)As per the given case, Graham has violated the laws under the RealEstates Agents Act 2008 and under the Auctioneers Act 2013. As per the Auctioneers Act 2013, Section 5, the person needs to be registered as an auctioneer before conducting the profession, as graham has not done the same, he has violated the act. Along with this, Graham has also violated the Real Estates Agents Act 2008 under the section 128 of the law. As per the same, the process of commission within the agreement should be properly mentioned in order to conduct the process. Please re-visit the Real Estate Agents Act.

Q16) Yes, Graham has breached the rules under section 9. 7 of the Rule 9of the code of professional conduct and client care which implies that the process of agreement documents as well as the overall contractual documents required being precisely framework for avoiding any discrepancy. Apart from this, Graham also made serious implications of not following guidelines under section 9.8 which states that a licensee must not take advantage of the inability to understand the relevance of the documents by the client.The scenario does not say that the clients were incapable of understanding. Along with this, Graham also has made some serious violations of the Rule 10 of the code of conduct under section 10.6 by not allowing the sellers about various conditions under Commissions of the agent.

Q17) Reserve price: Minimum price at which the seller wants to sell his property to the buyer

Highest Bidder: The person who won the competitive bidding process and values the property to the highest owns the Auction.

Sold under the hammer: This refers to the process of completion of the selling process of bided property which is sold to the person offering maximum money after the seller’s reserve price has met and can be sold now.

Q18) The Memorandum Recording Sale is signed by the parties involved in the auction process including the seller, the buyer as well as an auctioneer.

Q19) The conditions under which the purchase is allowed to cancel the contract under the sale of real estate by auction form are as follows:

Section 7.2: If the property is damaged prior to the possession of the same, then the purchase is complied to cancel the contract under the same

Section 9.5: If the vendor breaches the contract by defaulting in certain warranties or has misdescribed the property so the purchaser enters into the contract based on a misrepresentation, then under common law or the contract or commercial law act 2017 may provide relief, including the right to cancel the contract of the breach/ misrepresentation is serious enough to cancel.

Section 12.5: If the vendor does not comply with the terms of the settlement notice then the process of the agreement can be cancelled by the purchase at any cost. Along with this, the purchaser can also sue to the seller for the same leading to cancellation of the contract

Q20) Private Treaty – Private Treaty occurs when a property or real estate is to be sold on the basis of negotiation. Besides, an offer has been made by the buyer and sends to agent. The sale will only take place with mutual agreement of the buyer and the seller on fixed terms and conditions. A private treaty sale occurs when a property is listed for sale with an asking price, the buyer makes an offer to the agent, who then presents the offer to the seller, who can then decide whether or not to accept the offer

Q21) Marketing with Price-Here in this case the price strategy should include the cost of the price, with a definite profit margin. Here the value of the producer is considered first then accordingly the price is calculated. The marketing is done in such a way that the minimum profit margin should be fulfilled.

Advantage –The advantage of the price treaty is the buyer can get a maximum price because he has not fixed the minimum price, he can get quotations from everywhere, and he also gets an option to choose from many potential buyers.

Disadvantage –The disadvantage of this treaty is as the price is not fixed, everyone is giving the quotations, many for fun who are not at all serious of buying that property might have a look. This can be disturbing because you will have to go through hundreds of applications, and many might come out as of no use.

Q22) Marketing without a price is the process within the for sale by tender approaches for property handling.

Advantage: The process of non-price marketing helps in creating required hype for consumer and target audience. This is an advantage as it will help in the process of required customer attention.

Disadvantage: A major advantage as it can cause low bidding for the property lower than the reserve price.

Q23) Marketing with a deadline refers to the process of creating marketing campaign with proper stipulated time that is known publicly

Advantage: The process helps in increase customer attention

Disadvantage; This will deteriorate the prospective customer which cannot make it to the stipulated marketing schedule.

Q24) Marketing without a deadline refers to the marketing process of particular property without any stipulated time or date

Advantage: This helps in reaching out to the maximum people for the prices of selling the property

Disadvantage: A major drawback is the fact that it reduces the overall process of the maintenance of the customer hype resulting lower turnouts.

Q25) Multiple offer situations refer to a condition in which the number of prospective candidates for the overall condition of the selling is high with all of them offering proper offers leading to situation of chaos in the process of selling. This usually occurs at a tender or an auction process.Several situations such as misunderstanding between two parties, absence of proper legal and authorisation documents of property and breach condition may hamper the overall situation in a negative manner. Moreover, it has been identified that various offer situation may rise during the auction as a huge number of parties are present and they offer various price amount against the property. In an auction process, many bidders bid for the same property openly whereas through the process of tender as well, many bidders bid for the property privately.

Q26) In this matter, I will communicate with the owner and explain them the pros and cons of the process as well as the alternative options available that are significant for selling the property. Please tell me about the process. How would you deal with the customers?

Q27) Mortgage sale is referred to as a sale of a selling property by financially borrower. The buyer purchases a property while taking a loan from a bank. If he is not able to fulfil his commitment and give the loan amount within the particular time span, then bank will mortgage his property and sell it in an auction. The process can be cancelled anytime if the owner pays the lender the required amount of money.

Q28) Vendor warranties. These are generally the promise of the vendor towards the buyers and occurs during the process of Mortgage sales in which the buyers is assured of the physical existence of the property by the vendor Incorrect

Chattels: The process of Chattel mortgage indicates the process loan extension to an individual in mortgage sales, mainly for any movable property. Incorrect

Client disclosures Client disclosure is all about the privacy policies that describe conditions under which an institution can disclose non- public personal information about client to the non- affiliated third parties. Incorrect

Possession: Possession in terms of mortgage sales is referred to as the process of acquiring of the property as per the predetermined date and time. Incorrect

What would you be saying to a potential buyer about these things? Please re-read your course book.

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