Hello Alexander,
You are referring to the following mentions: “from 199,500 euros subject to acceptance by the owners” or “for sale from 220,000 euros” which are more and more widespread on real estate sales sites . Nevertheless, they remain quite controversial.
Yes, it’s not illegal
“Since the Covid, and the incredible enthusiasm that there has been for real estate, this practice has become widespread. In this way, we hope to inflate prices. Thus, the seller is happy, and the real estate agent too, since his commission increases. ” explains Andrea Cataldo, lawyer competent in property law and lecturer at UNamur. But the mention as such is not illegal. Some sellers and real estate agents use it to promote a house or apartment for sale, on a site that lists real estate offers, for example.
But, the practice cannot lead to an auction
…that is, to encourage prospective buyers to increase the price of their offer to obtain the highest selling price. “What is certainly prohibited is to communicate to each amateur the offers that have been received elsewhere, warned Andrea Cataldo. “It is the notaries who have the monopoly on the realization of public sales, in auction rooms or online. It is the law that organizes the notarial profession that provides for this. “In principle, real estate agents cannot therefore initiate auctions. What is also different in this scenario is that the seller is not bound to accept the highest bid.
It involves the responsibility of the real estate agent
We find ourselves in a more ambiguous situation when we do not reveal the selling price of the other prospective buyers, but we establish, all the same, a climate of competition. “It all depends on the interpretation, but if you tell a potential buyer that five candidates are on the spot, and you tell him that he must put his best price, it can be considered as a kind of auction, mentions Andrea Cataldo. Especially if you organize several rounds and you give a deadline of 48 hours, for example, to increase your offer. Here, we end up giving indications. ”
The practice is ultimately quite common, but it engages the responsibility of real estate agents. They cannot mention a different price than the one agreed with the owner. “In principle, they are supposed to stick to the price they have agreed with the customerrecalls Andrea Cataldo. Estate agents must respect their ethics, but the practice is so widespread that I find it hard to see a court saying, on that basis, that it is not permitted, as long as we remain consistent with the price that was discussed with the client initially. ”
However, he urges caution:A potential buyer might react and have the sale cancelled, especially if there is written evidence. The stakes are very high with large amounts and therefore, legal costs that are proportional to the stake. Obviously, few cases end up in court, but it can still be dangerous.”
Real estate still cheaper in Wallonia than elsewhere in the country – L’Avenir (lavenir.net)
