Real estate agent liable for error in the bidding round

In connection with the sale of a flat, an interested party made a bid that was accepted by the seller. The estate agent did not convey the acceptance to the bidder. After the acceptance time limit had expired, the bidding round therefore continued. The flat was ultimately sold to the bidder whose bid had initially been accepted, at a higher price than the initial bid. Unlike the Court of Appeal, the Supreme Court found that the estate agent had acted negligently giving rise to liability and in conflict with estate agents' code of conduct when failing to convey the first acceptance to the bidder, see section 6-3 of the Estate Agency Regulations. The buyer was awarded damages from the estate agency and its insurance company equal to the balance between his original bid and the final purchase price, see section 2-1 of the Compensatory Damages Act. 

Read the whole judgment (Norwegian only)

Areas of law: Tort law. Professional liability. 

Key paragraphs: 35, 36 og 46

Justices: Indreberg, Normann, Bergsjø, Steinsvik, Sæther