Real Estate Agent: A Key Actor in Real Estate Transactions
Discover the central role of the real estate agent in real estate transactions, its legal obligations and the laws that govern its profession.
The real estate agent plays a crucial role in the process of buying or selling real estate, whether it is a house, an apartment or a prestigious property. His profession is regulated by a set of strict laws that guarantee an ethical and transparent framework for real estate transactions. This article explores in depth the responsibilities, legal obligations and the framework within which the real estate agent operates.
Role of Real Estate Officer
The real estate agent is the preferred intermediary between the seller and the buyer. Its main objective is to facilitate the transaction by finding a satisfactory agreement for both parties. To do so, it must:
- Understand the needs of its customers (buyers or sellers).
- Analyse local market trends.
- Implement marketing strategies for the sale of goods.
- Facilitate negotiations between the parties.
Legal obligations
The exercise of the profession of real estate agent is subject to several legal obligations:
- Professional card : The real estate agent must have a professional card issued by the Chamber of Commerce and Industry, proving that he is qualified to practise.
- Financial guarantee : This guarantee protects customers in the event of bankruptcy of the real estate agent, in particular if he holds funds on their behalf.
- Professional Civil Liability Insurance : Mandatory, it covers the risks associated with the activity of the real estate agent, including any damage to customers.
Legal status
A real estate agent may exercise several statutes:
- Individual enterprise : The agent shall assume full responsibility for his activity.
- Company : He may also choose to exercise in a legal form such as SARL or SAS, offering protection in terms of liability.
In all cases, the real estate agent is considered to be a merchant subject to the rules of commercial law.
Financial Guarantee and Insurance
Subscription to a financial guarantee is a legal obligation unless the real estate agent undertakes not to manipulate funds on behalf of its customers. This guarantee is intended to secure the funds of customers in the event of an agent default. In addition, occupational liability insurance protects against material or immaterial damage caused in the performance of its duties.
Mandatory displays
The real estate agent must clearly display certain information in his agency:
- The number of his business card.
- The amount of the financial guarantee.
- Rates and methods of calculating fees.
This information must be visible on the Agency's premises and on its commercial documents.
Mandatory mandate
To sell or rent property, the real estate agent must be in possession of a written mandate signed by the client. This mandate specifies the terms of the transaction and the remuneration of the agent. There are two types of mandates:
- Simple mandate : The client can mandate multiple real estate agents for the same transaction.
- Exclusive mandate : The property is entrusted to a single real estate agent for a given period.
Register of Mandates
The real estate agent is also required to hold a register of mandates where each warrant must be recorded with key information such as the date of signature, the name of the customer, the nature of the property and the terms of the transaction.
Conclusion
The real estate agent is an indispensable player in real estate transactions, offering essential expertise to secure and facilitate sales and purchases. Its role is strictly regulated by laws such as Hoguet lawensuring transactions in accordance with ethical and legal standards. By fulfilling its obligations and providing professional service, it contributes to the success of real estate transactions for the benefit of all parties.
Reference texts:
- Act No. 70-9 of 2 January 1970 (Law Hoguet)
- Decree No.2015-1090 of 28 August 2015 (code of ethics of real estate agents)
- Decree No. 72-678 of 20 July 1972 (conditions for carrying out real estate activities)
- Orders of 10 January 2017 (consumer information in real estate transactions)
Follow Clovis properties on social networks: LinkedIn – Facebook – YouTube – Instagram – X Twitter
Join The Discussion