State land is sold by public tender or by auction
A worked RES examination question on government land sales, from our Paper 1 bank — with the rule it turns on, and why each of the four options is right or wrong.
The question
A developer has his eye on a particular State site and wants to know, before he commits resources to it, exactly how it would come to be sold and on what terms he could bid for it. He has heard several accounts from various sources and has come away with the impression that a site like this is usually handed to a chosen developer by private treaty. He asks his agent to set him straight.
Consider the following statements.
- (i) The site he wants will be sold by public tender or by auction.
- (ii) If it goes by public tender, any developer including him may submit a bid.
- (iii) If it goes by closed tender, he may bid only if he is invited.
- (iv) It will most likely be sold to a chosen developer by private treaty.
The answer, and why
Answer: D
The rule. State land is sold by public tender or by auction. A public tender is open to all; a closed tender is by invitation only. It is not sold by private treaty with a chosen developer.
Why D is correct. The site he wants would be sold by tender or auction, an open tender being open to all and a closed one by invitation, so (i), (ii) and (iii) hold; (iv) is false — it would not go by private treaty to a chosen developer.
The other options.
- B and A carry the false (iv).
- C drops the true (i).
Exam note. Tender or auction, and tender may be open or closed. Private treaty with a chosen developer is not how State land is sold.
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