Tender Code of Practice

1.0 General Principles

1.1 Members shall ensure compliance at all times with the provisions of the Real Estate Agents Act 2008 and the Rules of the Real Estate Institute of New Zealand Inc.

1.2 Members shall not engage in any conduct which is misleading or deceptive or is likely to mislead or deceive prior to, during or after the sales process.

1.3 Members shall ensure that all sellers are aware and understand that they are not permitted to sell the property by any other method once the tender process has commenced.

2.0 Sale by Tender

2.1 Members shall not use the expression "sale by tender" or any similar wording or engage in a process for sale by tender unless the process is one in which the seller invites confidential offers for the purchase of land or a business upon terms which include statements:

(a) as to date and time for closing of offers, and
(b) that offers shall remain unopened until that date and time, and
(c) that the price stated is without any reference to the price stated in any other tender(s).

3.0 Authority to Sell

3.1 Members shall not commence a sale by tender unless a written authority for sale has been signed by or on behalf of the seller.

3.2 Members shall submit a copy of this Code to prospective sellers prior to accepting instructions for sale by tender.

3.3 Prior to advertising a sale by tender members shall agree with the seller on the form of the particulars and conditions of sale by tender to be used and shall provide the tenderer with a copy of the agreed Particulars and Conditions of Sale by Tender.

4.0 Marketing

4.1 In advertising a property for sale Members shall use the words "tender" or "for sale by tender" and must not use any qualifying words or expressions, such as "open" or "closed".

4.2 Sellers are not permitted to sell the property by any other method during the tender process. Advertising and marketing materials must not suggest anything to the contrary.

5.0 Receiving of Tenders

5.1 Members shall ensure that all tenders (howsoever received) are placed in a sealed (tender) envelope and that immediately upon receipt the envelope is marked with the address or other appropriate identification of the property, the date and time of receipt. Members shall ensure that all tenders shall be deposited and held by the member in a secure and confidential manner until the Closing Date and Time.

5.2 Members shall keep and maintain a register for all tenders received, and shall, on request by the tenderer, provide a written acknowledgement for the tender received, identifying the property and the date and time the tender was lodged. Members shall ensure that the register is held in a secure and confidential manner until the Closing Date and Time.

5.3 Members shall ensure that the tenders, tender envelopes or envelopes for records of payment for deposits are not opened by any person for any reason whatsoever prior to the Closing Date and Time.

6.0 Opening of Tenders

6.1 After the Closing Date and Time all tenders must be opened by the member or the member’s representative in the presence of the seller or the seller's nominated representative.

6.2 Members shall ensure that they identify for the seller or the seller’s representative all tenders that do not comply with the Particulars and Conditions of Sale by Tender.

6.3 Members shall ensure that all tenders, including the identity of the tenderer, will be kept secure and confidential and that the details of any tender (whether successful or unsuccessful) will not be divulged to any other tenderer or third party, save that statistical data may be provided to the Real Estate Institute of New Zealand Inc.

6.4 Members shall ensure that all unsuccessful tenderers are notified and deposits returned within two (2) working day of a tender being accepted or the tender process being terminated.

7.0 Reporting Breaches

7.1 Members shall promptly report in writing any alleged breaches of this Code to the Real Estate Institute of New Zealand Inc. specifying the particulars of the alleged breach and providing originals or copies of any relevant documents.