For sale by public tender

In a sale by public tender of a property, the owner (i.e. the vendor) will prepare a tender document which includes certain Conditions of Sale listing out the terms for the sale of the property. If any person who is insterested to buy such property, the person will need to state in the Conditions of Sale the purchase price he is willing to offer and then submit the tender document on or before a specified time. The vendor may or may not set a reserve price under which the vendor is entitled not to sell the property. After all the tender documents submitted by different tenderers are gathered, the vendor will decide which one to accept or just no one tender is accepted.

In a public auction of a property, the vendor will also prepare a document containing certain Conditions of Sale for the sale of the property. However, those persons who are interested in buying the property need not submit any document. Instead, such persons should attend an auction to be carried out at a certain time and venue as stated in the Conditions of Sale. The vendor may or may not set a reserve price. At the time of auction, all the interested buyers will bid to purchase the property. Usually, the highest bidder is the purchaser of the property.