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Right now there is most likely a rather unhappy owner of a single family home in Sandefjord. And the reason is a bidding round that went completely off the beaten track and was then brought before the Real Estate Services Complaints Board by the person who won the bidding round.
– It doesn’t make sense in such a situation.
It all started last year with DNB Eiendom hiring in Sandefjord to sell a single-family home in the whaling town. The estimated price was NOK 2.9 million, while the bidding round started at NOK 2.75 million. There were two participants in the bidding round and after both had submitted several bids and increased them by NOK 50,000 each time, the applicant submitted a bid of NOK 3.65 million. Then the other bidder had a bid of NOK 3 million and therefore the bid was increased by NOK 650,000.
– One thing is that the offer was extraordinarily high. The most important thing for the broker to understand that he was wrong was that until then a bid of NOK 50,000 had been submitted at a steady pace, before a bid of NOK 650,000 suddenly arrived. It makes no sense in such a situation, says associate attorney Martin H. Grøttland at Skaun Advokatfirma.
You wrote the wrong amount
Grøttland represented the plaintiff at the Board of Claims and says his client did not intend to submit an offer for NOK 3.65 million, but for NOK 3.065 million. Grøttland says the idea was that it should have been his client’s last and last offer for the single-family home.
– But you wrote the wrong amount on the offer and ended up bidding that was up to 125 percent higher than the suggested price. The numbers were in the wrong order, simply put, says Grøttland.
Grøttland, on behalf of the unfortunate bidder, demanded from DNB Eiendom avdeling Sandefjord compensation of 585,000 kroner. This is the difference between the offer that was accepted for NOK 3.65 million and the offer that the applicant intended to submit.
– When such an extraordinarily high offer is presented, the realtor must understand that the size of the offer was incorrect both in relation to the suggested price and the result of the bidding round. We believe that the broker has a duty to care for the bidder in this situation and that this duty has not been fulfilled here, says associate attorney Martin H. Grøttland at Skaun Advokatfirma.
– The broker contacted the complainant both orally and in writing.
It is true that the DNB real estate agent tried to call the plaintiff after the NOK 3.65 million offer was submitted and also sent the person in question a text message asking if the highest offer was correct. The broker also asked the plaintiff if he could extend the deadline for accepting the offer by 20 minutes. The bidder, who sat down in a meeting and declared that he is bad at Norwegian, responded that he could extend the offer for ten minutes.
– What the broker does wrong is not informing the bidder that the offer is too high. Just repeat the size of the offer to the bidder. There are several circumstances in the case that should have let the broker know that it was a typo. Although the broker tried to clarify the offer, it did not do so effectively. The mistake just repeated itself, Grøttland believes.
DNB Eiendom writes in its response to the Board of Complaints that its broker reacted to the sharp increase in the bid and therefore called the bidder to find out if the amount was correct.
– The broker contacted the complainant both orally and in writing even though he was under time pressure. The plaintiff confirmed twice that the amount was correct. Both text messages from the broker were short and precise, and the broker did not have the impression that the plaintiff did not understand or could not make himself understood in Norwegian, writes DNB Eiendom in its response.
– We do not agree with the decision or justification of the court.
DNB Eiendom believes that your broker has acted prudently and in accordance with good brokerage practices.
– The defendant does not agree that the broker had a duty to advise the plaintiff not to bid for this amount, writes DNB.
The Board of Complaints also concludes that the complaint of the bidder, mother DNB Eiendom, cannot proceed. The reason is that the broker repeated twice the amount of NOK 3.65 million without the claimants responding.
– In such a situation, the broker has not acted negligently in passing the offer to the seller. The court notes that the broker’s handling of the offer should be evaluated on the basis of the circumstances at the time of the offer, and not retrospectively when it is concluded that the plaintiff, according to himself, was unfortunately injured. for writing the wrong amount writes the court.
In addition, the court is of the opinion that the broker has not violated good brokerage practices, including the broker’s duty of care, when conducting the bidding round.
– We do not agree with the court’s decision or justification, but let us take note of the decision, says the plaintiff’s associate, Martin H. Grøttland.
Grøttland says he has not made a final decision on whether his client will now sue DNB Eiendom.
Communications advisor Vidar Dalsbø at DNB says he never wants to meet clients on the board, but thinks it can be helpful when a disagreement arises to have the case dealt with by an independent third party.
– We are satisfied with the decision and the conclusion is what we have argued all the way, writes Dalsbø in a text message.(Terms)Copyright Dagens Næringsliv AS and / or our suppliers. We would like you to share our cases via a link, which leads directly to our pages. Copying or other use of all or part of the content can only be done with written permission or as permitted by law. For more terms, see here.
