French estate agents are governed by a law of 2 January 1970 (known as the Loi Hoguet) and a Decree of 20 July 1972. These laws were passed to protect the public from low standards of ethics and competence. They are strictly enforced in France. Under these laws, estate agents must hold a carte professionnelle (licence).
The licence is valid for one year and is renewed annually. It must be produced to anyone who requests to see it. Contrary to other countries, this license is far from easy to obtain. The licence will only be issued to a person :
- who can provide evidence of his professional competence (e.g. various French university diplomas such as a law degree, and/or substantial practical experience in the field over a long period of time);
- provides professional indemnity insurance cover;
- and also provides a satisfactory financial guarantee.
All our agents are fully registered with our parent agency : JeSuisAgentImmobilier.com who have offices in Bordeaux.
A LISTING CONTRACT IS MANDATORY
No French estate agent can sell without a proper listing contract (mandat de vente). A French estate agent must either have a written “mandat de vente” (empowering them to sell a property on behalf of the vendor) or a written “mandat de recherche” (empowering them to seek out property to buy on behalf of a purchaser).
Under a “Mandat de vente” the estate agent is paid his or her commission by the vendor or purchaser, as specified in the mandat, however, under the “Mandat de recherche” the estate agent’s commission is generally paid by the purchaser.
The "Mandat de vente" can
- either be exclusive, appointing the estate agent as sole agent to market and sell the property on the seller's behalf
- or be non-exclusive, allowing multiple agents to sell the same property simultaneously.
"The mandat de vente" is also limited in its duration, usually to 12 months, although our mandats are now valid for 24 months.
CONFIRMATION OF SHOWING
A potential buyer who has visited a property may have to sign a bon de visite to acknowledge said visit. This document is not an agreement and can be safely signed by a buyer.
In France, each estate agency is free to decide upon the amount of commission it will charge for the successful sale of a property. A table with a clear indication of the estate agency's commission schedule must be displayed in the estate agent's office window and/or inside the office (usually the reception area). Usually, the advertised asking price will include the agent's commission, which may be indicated by the letters FAI ("Frais d’Agence Inclus") following the price, now more correctly HAI ("Honoraires d'Agence Inclus).
Usually, most agencies will charge a commission of approximately 5 to 10% of the sale price, depending on the price of the property, its location, local market parameters etc. Their scale or bareme, has to be visible on their website. Our's is on our home page plus https://www.allez-francais.com/library/buyers-vendors/honoraires-fees-ef...