The Real Estate Agent's Obligations

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Les obligations de l’agent immobilier

An intermediary between the seller and the buyer, or landlord For both landlords and tenants, real estate agents play a vital role in the real estate industry. Their profession is strictly regulated by law, and their rights and obligations are set forth in the Hoguet Act January 2, 1970. In order to practice, he must obtain from the CCI (Chamber of Commerce and Industry) a professional license that will allow him, through a sales mandate or a rental agency, which assumes liability, to act on behalf of its clients. In France, more than 80% of real estate transactions are conducted through a real estate agent. Our real estate agency in Paris's 16th arrondissement CENTURY 21 Auteuil Immobilier explains the responsibilities and obligations of a real estate agent.

Real Estate Sales: What Are an Real Estate Agent’s Responsibilities?

What are the responsibilities of a real estate agent?

If you’ve decided to sell or rent out your apartment, house, or parking space and are looking to work with a real estate agent, this is indeed the best way to ensure that your real estate project goes smoothly—provided you choose the right agency for your needs.

As a professional, the real estate agent is responsible for advising and assisting sellers and buyers—or landlords and tenants—whom the agent brings together, throughout their real estate transaction.

The real estate agent's role is to provide you with comprehensive support throughout the sales process, from estimating the value of your property to negotiating the sale, to signing of the preliminary sales agreement and at the conclusion of the transaction at the notary's office during the signing of the notarized deed. He will be responsible for drafting the real estate listing for you, ensuring it is widely advertised, and, of course, conducting showings of your property.

The Status of Real Estate Agents

The profession of real estate agent may be practiced as a sole proprietor or as part of a corporate structure, but under no circumstances as a self-employed entrepreneur, and requires certain mandatory administrative formalities:

  1. Hold a professional license (T for “Transaction” and G for “Management”), issued by the president of the regional Chamber of Commerce and Industry (CCI) for a term of 3 years, which requires the real estate agent to meet requirements regarding professional competence and good character.
  2. obtain a financial guarantee in the event that funds are withheld,
  3. open an escrow account at a bank if the business requires the collection of installments paid by the buyers,
  4. have taken out professional liability insurance (RCP)

The real estate agent is required to display this legal notice in all locations where he or she receives clients and to include certain statements on their legal, commercial, and other documents. They are also required to have a detailed, written power of attorney for sale or lease prior to any contact with potential clients, authorizing them to negotiate or make commitments on behalf of the owner or landlord.

The law allows for the delegation of authority, but requires the real estate agent to maintain an up-to-date record of mandates, in chronological order.

Real Estate Agent’s Obligation of Means

The real estate agent has a duty of means, insofar as he must do everything in his power to carry out his mission as soon as the mandate is signed.

Real Estate Agent’s Obligation to Achieve Results

A real estate agent’s obligation to achieve a specific result depends on the contract entered into with the client. They are obligated to provide professional service to achieve the result desired by their client—that is, the sale, rental, or real estate transaction for which they were retained—and must be able to negotiate competently to achieve the best possible results.
The real estate agent is not required to deliver results if market conditions do not permit it.

SIf you sign a sales agreement or a rental agreement with a real estate agent, You cannot hold him liable if he is unable to find buyers or tenants for you. However, if he commits a fault or acts negligently within the legal framework of his contractual obligations, he may be held liable for failing to meet his obligation to achieve a specific result.

The Real Estate Agent’s Duty to Advise

In carrying out the duties assigned to them under the terms of the sales contract with their client, real estate agents have, above all, a duty to provide advice in order to guide and support their clients in their real estate projects. The agent must ensure that the transaction is conducted in accordance with the law and provide all the information necessary for drafting the preliminary contract and the notarized deed.

In particular, real estate agents have a duty to inform buyers about the compliance of residential properties and the accuracy of the square footage listed in real estate listings.

Ethics and Professional Conduct for Real Estate Agents

The decree of August 28, 2015, which establishes the rules of a code of ethics for real estate professions, requires real estate agents to act with loyalty, integrity, and moral character toward all parties with whom they interact; They must conduct themselves in an ethical and professional manner.

In the best interests of their clients, real estate agents must act in good faith and adhere to sound business practices. They must respect the confidentiality of their clients’ information and be honest and transparent with them.
The professional is required to display the prices of their services, including tax, and to post their fee schedule in a legible manner that is visible from the outside at the entrance to the office where clients are received. The fee schedule must also be available on the professional’s website.

Real estate agents are required to undergo training, and the training requirements under the ALUR Act must be met by all employees of the real estate agency. This training is essential throughout their professional careers and covers modules on legal, economic, and commercial matters; professional ethics; non-discrimination in access to housing; and more technical topics such as urban planning and the energy transition.

Our team is here to answer any questions you may have about your real estate projects—whether you’re selling, buying, or renting. Please feel free to contact our two real estate agencies, CENTURY 21 Auteuil Immobilier and CENTURY 21 Auteuil Seine, by phone at 01 42 15 16 21 or 01 56 07 16 21, or by email: auteuil@century21.fr or auteuilseine@century21.fr

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