Definition of "Tender"
A tender has several meanings in everyday discourse. Most generally, tender means a formal offer designed for acceptance with the anticipation of soliciting a response in return. Bidding means organizing a tender to sell and buying shares, stocks, valuables, or even private property. And, finally, a tender can refer to a legal and acceptable means of payment (credit card, cash, or check.)
What does tender mean in real estate?
The definition of tender real estate revolves around a value for another’s (typically bidders) acceptance. An example is making a bid at an auction market for real estate. A tender is, by all means, one of the unique ways to sell a house.
Listing agents can list real estate for sale by tender. Homebuyers can present their offers in a written form and sealed envelope before an established deadline. Compiling a tender document constitutes the official procedure to commence the process. Only after the tender’s deadline can the house seller open the offers in the company of the vendor’s lawyer and the listing agent.
Local real estate agents often recommend listing real estate by tender. Firstly, the property sometimes showcases particular features, making it challenging to put a genuine price tag on the real estate. Secondly, the seller might have a deadline to meet when selling the property. A third case is when a vendor doesn’t want to disclose what price they expect from buyers. Therefore, they wish to receive generous offers and accept the most profitable.
Tender in finance
A tender can refer to a bidding proposal for a particular project. Also, a takeover bid means accepting a formal offer. You may also encounter the act of tendering when financial and government organizations stage proposals for projects. Applications for these projects have to meet a specific deadline. In corporate finance, the term can cover such a process in which shareholders submit their shares to respond to a takeover or merger.
Similarly, you find a tender offer as a public offer. You can purchase a specific number of stocks or shares made accessible by stockholders, generally designed to take command over the issuing company.
What is legal tender?
Courts accept a legal tender as a valid form of payment (money) used to settle any monetary debt. Every jurisdiction can determine what counts as legal tender. However, anything is accepted as tender if it meets the debt when tendered (offered.) The act of tendering the repayment in a legal tender for the debt nullifies one’s financial obligations.
According to the law in effect: “United States coins and currency (including Federal reserve notes and circulating notes of Federal reserve banks and national banks) are legal tenders for all debts, public charges, taxes, and dues. Foreign gold or silver coins are not legal tenders for debts.— 31 U.S.C. § 5103” (Source: Legal tender | U.S. Code | US Law)
Popular Real Estate Terms
An individual appointed by a court to manage the affairs and property of a legally incompetent party. The conservator has full decision-making authority over the affairs of the property in ...
Sales commission charged to buy shares in a real estate mutual fund sold by a broker or salesperson. Typically, the fee ranges from about 1 percent to 8 percent of the initial investment. ...
Sponsor of a syndicate involving people or companies buying an interest in a real estate investment or unit. The group of investors are in effect engaged in a joint venture for profit." ...
British thermal unit-a unit of energy associated with the creation of heat. Prior to 1929, it was defined as the amount of heat required to raised the temperature of 1 pound of water 1 ...
Are you planning on buying a house? If you are, you’re going to love the Buyer's Market definition. But if you are a home seller, you will wish that term never comes up again in your ...
Listing of items in priority or sequential order. There may be a succession or series of steps to result in a desired outcome. An example is what logical order should occur in building a ...
When we use the term contingent, we typically imply that something is dependent on another factor. Real estate contingencies make home selling, buying, or even inheriting a property ...
To undertake or take on a responsibility or duty. ...
Danger, hazard, risk, or peril. For example, jeopardizing a piece of property by pledging it as collateral for a loan. ...
Have a question or comment?
We're here to help.