The sales offer by the third party, i.e. the actual owner
- Offer stating fixed selling price
- Information about the non-binding intention to sell
- Sales offer with an “invitation to bid” on the price
- Confidentiality agreement
- Detailed sales documentation (possibly with Vendor Due Diligence)
- Opening a due diligence data room (Buyer Due Diligence)
- Possible presentation of the draft property purchase contract
- Invitation to participate in an auction process
- and so on
The sales procedure of the vendor is usually only transparent insofar as the prospective buyer is informed of the deadline for submitting the bid to the vendor. The internal decision-making process on the price and selection of the buyer usually takes place in secret and neither the procedure nor the criteria on which the decision was based are disclosed.
The prospective buyer then eventually receives the draft property purchase contract – if t was not presented as a compulsory requirement when the data room was opened – for the purpose of continuing the contract negotiations.