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HomeGovernment CodeDiv. 2Pt. 2Ch. 5Art. 8§ 25531 Oral Bids Over Written

§ 25531 Oral Bids Over Written

Government Code·California
AI Summary·Official Text·Key Terms·Related Statutes·References
AI SummaryVerified

§ 25531 Oral Bids Over Written

Key Takeaways

  • •Before accepting any written offers, the board must ask for spoken (oral) bids.
  • •If someone offers a higher price (at least 5% more) than the highest written bid during the oral bidding, the board must accept that higher spoken bid.
  • •The board does not subtract any broker fees from the spoken bid when comparing it to written bids.
  • •The broker fee cannot be more than half the difference between the highest written bid and the highest spoken bid.

Example

Imagine the city is selling an old building. They get written offers, with the highest being $100,000. During the oral bidding, someone offers $106,000.

Since $106,000 is more than 5% higher than $100,000, the city must accept the $106,000 offer. If a broker helped get this deal, their fee can't be more than half of the $6,000 difference, so no more than $3,000.

AI-generated — May contain errors. Not legal advice. Always verify source.

Official Source
View on CA.gov

§ 25531 Oral Bids Over Written

Before accepting any written proposal, the board shall call for oral bids. If, upon the call for oral bidding, any responsible person offers to purchase the property or to lease the property, as the case may be, upon the terms and conditions specified in the resolution, for a price or rental exceeding by at least 5 percent, the highest written proposal which is made by a responsible person, such highest oral bid shall be finally accepted. In determining which is the highest oral bid the board shall not subtract therefrom any commission to be allowed to a licensed real estate broker, stated in or with the oral bid, but the board shall allow a commission at the rate specified in the resolution, as prescribed by Section 25527. Such commission shall not exceed one-half the difference between the highest sealed proposal and such highest oral bid, except that if both the highest sealed proposal and the highest oral bid were procured by licensed real estate brokers then the commission shall be divided between them in the manner provided by Section 25532. (Amended by Stats. 1957, Ch. 2109.)

Last verified: January 22, 2026

Key Terms

resolutionreal estatepropertycommissionofferleaselicensedifference

Related Statutes

  • § 25527 Broker Commission Payment Rules
  • § 25530 Bid Opening And Acceptance
  • § 25532 Broker Commission Distribution Rules
  • § 25350.51 County Property Lease Authority
  • § 25350.55 County Financing Payment Guarantees

References

  • Official text at leginfo.legislature.ca.gov
  • California Legislature. Government Code. Section 25531.
View Official Source