What distinguishes a private treaty from a private sale?

A private treaty is a method of sale that occurs without the use of a public auction, allowing the seller to set a price and negotiate directly with potential buyers or through an agent. This process is distinct in that it encompasses all forms of transactions that do not involve bidding at a public auction. The flexibility of private treaty allows both buyers and sellers to adjust to current market conditions and to negotiate terms that are mutually beneficial.

On the other hand, a private sale typically refers to transactions conducted directly between a seller and a buyer, often without the involvement of real estate agents or public listings. The term suggests a more informal arrangement where the seller may choose to work directly with the buyer, but it does not necessarily imply the absence of negotiation or the involvement of agents.

Therefore, the differentiation lies in the inclusiveness of private treaty for all non-auction transactions, while private sales focus more on direct seller-to-buyer dealings, which may or may not involve agents. This understanding highlights the broader application of the private treaty method in real estate transactions compared to the more specific scenario of private sales.