French Estate Agents
The agent immobilier is rather more respected in France than the UK . This may be partly because the profession is highly regulated. Before he can set up in business, he must have:
- Standards of qualification, competence and experience.
- A professional permit to cover all property transactions. The permit has to be revalidated annually by the local prefecture de police.
- Professional indemnity insurance.
- Bank guarantees that cover him for all money he holds on behalf of clients. It is illegal for him to hold any money if the guarantee is for less than €85,000.
- Up to date knowledge of the true cost of transactions and market values. He is required by law to give this information and to give it honestly.
- Power of attorney (mandat de vente) before he can negotiate any sale on behalf of the vendor. The mandate has to be renewed after three months. He cannot purchase any property himself for which he holds a mandat for sale.
- Specified rates of commission written into the power of attorney and prominently displayed in his office.
Payments to Estate Agents
Traditionally, in France the purchaser, rather than the vendor, who has to pay the agent's commission. But this is no longer universally so. Agents in some regions have now adopted the more common EU practice of charging the vendor.
It makes little difference in the end. The commission is usually hidden in the purchase price if the vendor pays it, or a property may seem unusually cheap if commission is to be added. Commission rates were fixed by law until 1987 but agents now charge whatever they think the market can stand. In practice they usually ask 5% (plus TVA at 18.6%) but the rate can be higher for up-market properties. Sometimes a sliding scale is used. In either event the agent must display his scale of charges.
No commission is payable until the sale is legally finalised by the writing and recording of the deed.
