In connection with the sale of an apartment in Oslo, a prospective buyer submitted an offer that was accepted by the seller within the acceptance deadline. However, the real estate agent failed to communicate the seller’s acceptance to the bidder, and as a result no binding agreement was concluded. After the acceptance period had expired, a higher offer was submitted for the apartment and the bidding process continued. Ultimately, the apartment was sold to the original bidder for NOK 150,000 more than the amount of his initial offer, which the seller had already accepted.
Contrary to the Court of Appeal, the Supreme Court held that the real estate agent had acted negligently in a manner giving rise to liability for damages. The agent’s failure to communicate the seller’s acceptance of the original offer constituted a breach of the duty of care owed to the bidder. The bidder was therefore awarded damages from the real estate brokerage firm and its insurer corresponding to the difference between his original offer and the final purchase price.
The judgment clarifies the circumstances in which real estate agents may incur liability for damages arising from errors committed during the bidding process.
Source: Supreme Court
Martin Edelsteen Woll
mwoll@melo.no
+47 414 87 832
