The real estate agent profession is governed by strict rules, as it plays a crucial role in the real estate sector.
The real estate agent profession plays a crucial role in the real estate sector, acting as an indispensable intermediary between buyers, sellers and tenants. To ensure the security of transactions and the protection of consumers, this profession is governed by strict regulations.
In particular, the Hoguet law imposes precise conditions and obligations, such as holding a professional license, taking out professional liability insurance and respecting written mandates. These elements ensure that real estate agents act with integrity and competence. Understanding these rules is essential not only for professionals, but also for consumers wishing to navigate the real estate market with confidence.
In this article, we'll explore the conditions required to work as a real estate agent, the obligations towards consumers, and the remuneration arrangements associated with this profession.
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Requirements for becoming a real estate agent
In order to operate as a real estate agent, certain conditions must be met, guaranteeing the legitimacy and competence of professionals in the sector. Law no. 70-9 of January 2, 1970, often referred to as the "Hoguet Law", defines these essential conditions. First and foremost, real estate agents must hold a "carte professionnelle", issued by the Chamber of Commerce and Industry (CCI). This card attests not only to the agent's professional qualifications, but also to his or her moral character, two essential criteria for ensuring the reliability of intermediation in real estate transactions.
At the same time, the agent must also take out professional liability insurance. This insurance is essential, as it protects customers against any faults or negligence on the part of the agent. In the event of a dispute, this coverage guarantees financial recourse for the consumer. It should be noted that the absence of this insurance exposes the agent to sanctions and can compromise his income.
Another condition is the need to draw up a written mandate before taking part in a transaction. This document, signed and valid, must clearly stipulate the duration of the mandate, the agent's remuneration and the conditions attached to the assignment. Real estate agents must also ensure that all mandatory legal information is included, in accordance with article 92 of the decree implementing the Hoguet law.
A final point not to be overlooked is the financial guarantee, which the agent must also establish with a banking institution or professional organization. This financial security, which demonstrates that the agent manages his funds with complete transparency, is essential to inspire customer confidence.
These conditions, though strict, serve above all to guarantee adequate protection for customers and maintain the integrity of the real estate market. In the remainder of this article, we will discuss the specific obligations of real estate agents towards consumers.
Real estate agents' obligations to consumers
When it comes to real estate agents' obligations, it is crucial to address the duty of transparency and information, which are at the heart of the relationship between the professional and the consumer. Indeed, the Hoguet law, in particular its articles, stresses the importance of the agent providing clear and precise information on the properties offered, as well as on the conditions of the transaction. This includes, for example, a presentation of the property's characteristics, its legal status, and the fees and commissions associated with the transaction.
Compliance with the mandate is also a fundamental aspect of this relationship. A real estate agent must ensure that the mandate binding him to his client is in due and proper form. This mandate, whether for sale or rent, must mention the agent's remuneration, which is essential to avoid any misunderstandings at the conclusion of the transaction. It is also essential to maintain good communication with the client throughout the process, so that he is kept informed of progress and any changes concerning his transaction.
As far as professional liability is concerned, real estate agents must exercise due diligence in the performance of their activities. In the event of fault or negligence, the agent may be held liable for any damage suffered by the consumer. For this reason, professional liability insurance, which you are obliged to take out, plays a protective role for customers, ensuring that they are covered in the event of a dispute.
It should also be emphasized that real estate agents must act loyally and impartially towards their customers. This means that they must not favor one customer over another, and that they must act in everyone's best interests, while complying with current legislation. Such practices are essential to building long-term relationships based on trust.
Finally, ongoing training is a moral and sometimes legal obligation for real estate agents. To ensure that they remain up to date with changes in real estate regulations, agents must regularly take part in training courses. This not only enables them to serve their customers better, but also ensures that their practices comply with the law.
Real estate agents' obligations to consumers play a vital role in the smooth running of the real estate market. This responsibility to the customer is a solid foundation for trust in transactions. In the remainder of this article, we take a closer look at the subject of real estate agent remuneration and the specifics of the mandate.
How is a real estate agent remunerated, and what are the specifics of the mandate?
The remuneration of a real estate agent is of particular importance to both professionals and consumers. It is mainly based on the commission system, which represents a percentage of the sale price or rental amount. By law, real estate agents must inform their customers of the amount of commission they charge prior to any transaction, thus guaranteeing the transparency essential to the commercial relationship. The use of commissions is governed by the Hoguet law, which also stipulates that the agent must obtain a written mandate before acting on behalf of a customer.
The mandate, which can be simple or exclusive, is a key document establishing the relationship between the real estate agent and his principal. Under an exclusive mandate, the agent has the exclusive right to negotiate for the property, while a simple mandate allows the principal to entrust the sale to several agents. Implementing decree no. 72-678 of July 20, 1972 specifies that the mandate must include information such as the duration of the engagement, the agent's remuneration and the conditions for handling funds. It should be noted that all mandates must be signed by both parties, thus guaranteeing compliance with contractual obligations.
The collection of fees must follow precise rules. For example, in the case of a sale, fees can only be charged once the transaction has been completed, generally when the deed is signed before a notary. The law also imposes ceilings on fees for residential leases, stipulating that fees charged to the tenant must not exceed a certain amount per square meter, depending on the geographical area. These remuneration rules are designed to protect consumers from potential abuse, while ensuring that real estate agents receive fair compensation for their services.
It is also essential to mention that the real estate agent has a duty to advise, which commits him or her to ensuring the regularity of the transaction. This means that he must check the validity of the information provided in the mandate, the conformity of the documents linked to the transaction, as well as compliance with legal obligations that may influence the amount of remuneration. The Hoguet law and its implementing decrees reinforce the regulatory structure governing these aspects, ensuring a framework of trust for all parties concerned.
In short, real estate agent remuneration and the terms and conditions of the mandate are not just financial issues. They also involve legal and ethical considerations that guarantee consumer protection.
