Real Estate Transaction Mandate

The activities of real estate agents are governed by Law No. 70-9 of January 2, 1970, known as the “HOGUET Law,” and its implementing decree No. 72-678 of July 20, 1972.

The real estate agent profession may be practiced either as an individual, as part of a corporate structure, or even through an association governed by the Act of July 1, 1901. However, it may not be practiced under the “auto-entrepreneur” status.

Practicing the profession of real estate agent requires the completion of two specific administrative formalities:

• The real estate agent must hold a professional license, subject to requirements regarding professional competence and good character, issued by the prefect and valid for 10 years

• The real estate agent must also have a financial guarantee from a bank or a professional organization (an exception is provided for agencies that have given a sworn statement that they will receive no funds other than their compensation). The agent must also have professional liability insurance.

Real estate negotiators (employees or sales agents) authorized to negotiate, mediate, or act on behalf of the professional license holder must provide proof of their status and the scope of their authority by means of a certificate. This certificate is issued by the license holder and must be endorsed by the prefect. Since the enactment of the ALUR Law of March 24, 2014, real estate brokers must also demonstrate their professional competence.

In addition, a prior declaration of business activity must be filed (with the prefecture of the department where the business is located for the provinces, or with the Paris Police Prefecture for Paris) for each branch office by the person in charge of that office.

Finally, the real estate agent must hold a written power of attorney authorizing them to negotiate or enter into agreements on behalf of the owner or landlord.

As real estate transaction agents, we provide the following services:

• Assistance with the sale and rental of real estate (placing advertisements, selecting the counterparty)
• Analysis of the legal characteristics of the properties and rights to be transferred
• Assistance in appraising the value of real estate
• Advice on the legal implications of the transaction (tax, social security, estate planning, and family law aspects)
• Review of the legal and tax conditions of the transfer;
• Obtaining all documents or authorizations necessary to complete the transaction
• Drafting all documents necessary to prepare for and finalize the proposed transaction
• Other real estate management tasks (supervising construction work, etc.)