What Does Method of Sale Mean?

The two preferred methods of sale are:

Private Treaty

Private Treaty sales involve negotiation to agree the price and terms. Legal commitment by both parties only happens on ‘exchange’ of contracts (ie when they are signed, swapped and deposit paid).

The purchaser can ‘cool off’ (ie change their minds) within 5 working days and forfeit 0.25% of the purchase price unless the contract is made unconditional. The vendor is always bound. An unconditional sale is obviously preferred but it depends on the circumstances.

Auction

Auctions are always an unconditional sale at a set time, date and place. They are usually set for the fourth week of the marketing campaign. The sale is subject to the Vendor’s reserve (minimum) price being met.

It is preferable to indicate a price range in auction advertising.

COMMENT: The ‘right’ method depends entirely on the property and circumstances.

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