The sales mandate is part of the legal obligationssurrounding the commercial relationship between a real estate agent and the owner of a property for sale. There are three versions that differ depending on whether the contract is exclusive or not: simple mandate, exclusive mandate and semi-exclusive mandate. The simple mandate is interesting when an owner wants to keep control of the sale of his property, while benefiting from the expertise of several real estate agencies. But this model, as uncommitted as it is, does not only have advantages. Findthe information you need to know before signing.
What is a simple sales mandate?
The simple sales mandate, like the exclusive mandate, contractualizes the professional exchange between the seller of a property and the real estate agent who will take charge of this sale. As opposed to the exclusive mandate, the simple mandate does not give the exclusivity of the property to a single real estate agency. Thus, the seller can call on other agencies if he wishes to benefit from a wider distribution,but none of these agencies will have a monopoly. The seller can, as part of the simple mandate, sell his property without going through one of the agent agencies, if the opportunity arises.
It is the most flexible mandate of the three, but it does not have only advantages. This type of mandate is not very exhilarating for real estate agents who often prefer to have exclusivity on a property. In addition to this possible loss of motivation on the part of agents, buyers may neglect your property because it is not exclusive. Finally, the property may be displayed at different prices depending on the agency, which can damage its credibility.
Also note that a mandate is irrevocable for a period of three months. At the end of this period, the mandate istacitly renewed for a period of one month and can be renewed every month for one year if you do not object.
What does the simple mandate commit you to?
The simple mandate is more flexible than the exclusive mandate, but it is nevertheless subject to certain rules. The first concerns direct sales, from individual to individual. Although fully authorized by the simple mandate, a direct sale can not take place if the buyer has previously discovered the property through one of the real estate agencies in charge of the file. Thus, setting aside the real estate agent in order not to pay his commission is perfectly illegal when you are a signatory of a simple sales mandate.
Note that the end of the irrevocability period does not authorize you to use this practice. That rule is valid at the end of that period for the following 24 months. The purchaser leaves a trace by signing a visit voucher when he participates in the appointments organized by the real estate company. This document also contains the duration of the prohibition of direct sales. The seller, subject to his sales mandate(s), is then required to inform the agents of the identity of the potential buyer before committing, in order to be surethat it does not appear in their files.
What should a simple sales mandate contain?
The sales mandate is regulated by Article 6 of the Hoguet Law of 1972 which indicates the information that must appear on this document:
- The identity of the real estate agent, i.e. his professional card number, the territorial chamber of commerce and industry that issued his professional card and the details of his financial guarantee.
- The identity of the owner or, where applicable, of the co-owners if the mandate concerns a property forming part of a succession with several beneficiaries.
- The description of the property involved, its address and description.
- The purpose of the mandate: there are several types, including research or sale.
- The duration of the mandate, since the latter will have to be systematically limited in thetemps. In general, it is 3 months.
- The price of the property, therefore its market value excluding agency fees. A price range may be specified in case of negotiation.
- The remuneration of the real estate agent, which may appear in amount or percentage, as well as the designation of the party called upon to pay these costs (seller or buyer).
- The means used by the real estate agent to carry out the sale or research, depending on the type of mandate.
- The registration number in the register of mandates.
The mandate must absolutely be approved and signed by the principal, the owner and the agent, the real estate agent.
The advantages of the simple mandate
The simple mandate gives you more freedom regarding the number of agencies with whichthey can deal. The most hurried sellers will see it as an opportunity to reach a wider audience. This flexible mandate also allows you to organize the sale of your property by your own means, in parallel with real estate agencies. Youwill be able to distribute your ad through channels that mainly reach individuals (websites, specialized newspapers, regional press, word of mouth, etc.) and choose to sell at your price without having to pay a commission.
How to terminate your simple sales mandate?
The termination of a sales mandate is not a simple act, but there are a few cases that allow you to free yourself from this contract.
Initially, you benefit from a withdrawal period of 14 days following the date of signature. Attention, this period applies to sales mandates signed outside the real estate agency. If this is the case, you can proceed with the termination by registered letter with acknowledgment of receipt.
If you have signed the mandate in the agency or if the deadline is exceeded, you enter the irrevocability phase. You can refer to the content of the sales mandate to know the duration and terms of this period. If you wish to withdraw yourhouse from the real estate market or if you decide to sell your property alone, be aware that you will be required to respect the period of irrevocability. You will therefore have to wait before you can request the termination of the contract. Only one special case, if the realestate company has not presented you with any potential buyer for your property at its selling price.
You can terminate the simple sales mandate by registered letter with a notice of 15 days. You will only have to wait until the end of the three-month irrevocability period, tacitly renewable every month for one year.
