What is the meaning of “tender” in real estate transactions?
Tender is a very specific term in a real estate transaction.
Tendering is the process to demonstrate that a party is “ready, willing and able” to complete the transaction.
So, even if there is going to be default on the other side, a party must demonstrate that they went through all the necessary steps.
The Buyer would tender (present for examination by the Seller) the draft for payment of the purchase price etc.
The Seller would tender the Transfer, duly executed and the keys, Undertakings with respect to the Discharges of Mortgages etc.
This action permits the innocent party to advance to the next step, which is the lawsuit.
Otherwise, they innocent party could be confronted with the objection: “you weren’t ready to close either”.
Brian Madigan LL.B., Broker