Is the broker required to pass on an offer to the seller?

Should the broker be required to pass a bid on to the seller? With the mandatory introduction of the bid log, you would think that this rule could be established right away in a bidding system. Yet today there are still differences between bidding systems. This raises the question: is it actually mandatory to pass on a bid?

The role of the broker

Despite the fact that selling a home without a real estate agent is becoming increasingly popular, the vast majority of people still hire a real estate agent. The real estate agent is then brought in as an advocate for the seller and tries to get the best result for his client. When an offer is made, it is almost always sent directly to the real estate agent, who will process it and take follow-up steps in conclave with the seller.

Obligations for a real estate agent

Because a broker is engaged by a consumer and thereby enters into a legal commitment, certain obligations apply to a broker. These obligations are found, for example, in the Realtor's Honor Code or professional or code of conduct. The main obligation is to serve the seller's purpose, as well as open and transparent communication. Because of this, it goes without saying that seller must always be aware of all bids made

Obligation from the government

Yet the Home Owners Association's report showed that bids were not always passed on to the seller properly or on time. In response, the Ministry of the Interior and Kingdom Relations signed the covenant Improving Trust in the Buying Process together with the various industry associations. This covenant includes the following rule:

During the entire sales process, there is no difference in information between selling broker and seller: To this end, clear agreements are made in advance about how and when the sellers will be informed. The starting point is that all information is shared in real time. In addition, all bids (including reservations, movable property and personal message) and time of receipt are automatically recorded in a bid log and shared with the seller. 

This shows that all signatories believe that sellers should be kept informed in real time (immediately) of new bids.

Differences in software systems

Thanks to the bid log, the bidding process has been digitized, this offers the advantage that the above obligation is easy to automate, for example, a seller can be immediately notified by email of a new bid. 

Yet several media items indicate that some software parties deliberately choose to disable this option. This difference in information could allow abuses, as previously reported, to continue.

Do sellers want to be kept informed immediately?

As an argument for turning off this option, it is often suggested that sellers would often not want to receive emails about this, or that they would prefer to hear from the seller in person.

Eerlijk Bieden has, of course, put the test to the test! For example, over 15,000 sales processes showed that only 0.6% of salespeople indicated that they preferred not to receive updates. Of this group, by the way, half were professionals such as administrators.

How to move forward?

Currently, a NEN committee has been set up to tighten the rules, this should eliminate mutual differences between systems and (hopefully) soon it will no longer be possible to turn off communication towards vendors.

To learn more about the sales process of Eerlijk Bieden, please feel free to contact us!