TO THE TENDER SYSTEM
variations have been defined and discussed above particularly
informal and formal tenders. Other methods of sale that the stock and
station agent may encounter are:
may be called for subject to conditions. This is more likely in the
formal tender system. Some tenders such as for a rural lease or
agistment purposes will usually have the lease or licence
documentation already drawn up and the tenderer is invited to peruse
the document before lodging his/her tender.
most stringent conditions apply to government tenders under which the
tenderer may be required to comply with a host of conditions
pertaining to public and government policy.
tenders apply to informal tenders and the tenderer may submit a
tender price unconditionally or may submit the tender subject to
conditions stipulated by him/herself (eg subject to finance). It is
then up to the agent/seller to decide whether or not to accept such
conditions or negotiate further with the tenderer if the conditions
option is the right in one party to require the other party to enter
into a new set of legal relations or to extend or continue an
existing legal relationship. The most common example is an option by
a lessee to take up a new lease upon the expiration of the current
lease. For example, a lease may be described as a “3+3 lease”.
This means that the initial term is 3 years with the lessee having an
option of a further 3 years.
buyer of land may enter into an option to purchase. This option is
usually critical on the happening of some event. For example, to
obtain council approval for a contentious land use. For example, an
option to purchase a farm to convert to a piggery. However, this will
require council approval including satisfactory disposal or use of
effluents. The sale will only be completed if council is satisfied
that the problems raised by the proposed contentious use has been
and call options
and call options are a sophisticated method of selling property..
system was used largely to reduce the amount of stamp duty payable on
sale of a property. However, the NSW Government now has legislation
in place to close that loophole so that the transfer or assignment of
a call option will attract full duty based on the value of the
underlying land. The fact that you transfer the call option without
fee or other advantage will not exempt the transaction from the new
example is as follows:
grants A a call option that confers a right on A to purchase land
from B. A also grants B a put option that confers on B a right to
require A (or any associated person or assignee of A) to purchase the
land from B. A transfers the call option to C. This transfer will
result in A being liable to call option assignment duty.
that the loophole has been closed it is doubtful that the agent would
encounter this method of sale.