What is the main advantage of the private treaty method over auction for a vendor?
Correct Answer
C) More control over timing, price negotiation and choice of buyer.
Private treaty offers vendors more control over the sales process, including the ability to negotiate price and terms, choose settlement dates, and select buyers based on their financial position and conditions.
Why This Is the Correct Answer
Private treaty lets the vendor negotiate price and terms with each buyer, choose when to accept, and select a buyer on conditions and settlement as well as price.
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- → Tom plans to bid at a NSW house auction on behalf of his sister, who will instruct him by phone from Perth. Neither holds power of attorney. What must Tom do to bid for her?
- → An agent in NSW quotes a property at $800,000-$850,000 but sets the reserve at $900,000. Three weeks later, the agent receives feedback that most buyers are interested at $820,000-$840,000. What should the agent do to comply with underquoting legislation?
- → In NSW, a buyer signs a private treaty contract for an established home and changes their mind two days later. When can they withdraw, and at what cost?
- → An agent in NSW receives an offer on a property listed for private treaty sale. The agent knows of another buyer who previously expressed strong interest but hasn't yet made a formal offer. What is the agent's legal obligation regarding disclosure?
- → In NSW, if a property is passed in at auction, what are the vendor's immediate options?
- → In NSW, the auctioneer takes a bid on the vendor's behalf without announcing it as a vendor bid, and the property is then knocked down to a genuine bidder. What is the legal position?
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