In this process the asking price will not be stated, though generally a guide price will be given. Written offers will be invited (known as sealed bids), and a closing date for such offers will be published. All offers are opened at the same time. Generally, the vendor is not committed to accepting the highest or any offer. The offer is not binding and on acceptance of any offer the transaction proceeds subject to contract. This is used if the property competition is strong and a choice of buyer is likely and when a closure date is required or desired.
When a formal tender is used in selling a property, the sale will be advertised with a deadline by which prospective purchasers must submit their bid (as with an informal tender). However, each tender document from the bidders must include the full legal contract for sale and all bids have to include a banker's draft as a deposit on the contract. The bids are opened by the vendor or agent. As soon as the “best bid” is selected, the banker's 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. If the successful bidder fails to complete the sale they will forfeit their deposit and further costs may be incurred. This is usually used with some land transfers but in property, it is rarely used due to its complexity.