TPO guidelines for Sale by Tender process

Wednesday 21 January 2015

As Sale by Tender becomes an increasingly common approach used by agents, The Property Ombudsman has released best practice guidelines on how agents should handle the controversial Sale by Tender process.

Sale by Tender is when the agent enters into an agreement with a seller to market a property and invites offers from prospective purchasers which are submitted through a sealed bid process. In this process it is usually the buyer that agrees to pay the agent a fee rather than the traditional sellers pay method. 

The guide is aimed at reducing confusion within the industry and addresses issues of conflict of interest in cases where the agent may ask for a fee from both the buyer and the seller. 

The guidance focuses on four particular aspects of the Code of Practice in relation to:

  • Transparency
  • Disclosure
  • Conflicts of Interest
  • Duty of Care, fairness of treatment 

Mark Hayward, Managing Director at NAEA said:

“I am grateful for the clarity that the Ombudsman has brought to this issue and welcome the guidelines as a way forward for best practice that our members can implement immediately”.

For the full guidelines click below link:

Guidance for Agents: Sales by tender/Buyer pays fee

You can contact TPO on 01722 333306 or email: admin@tpos.co.uk