The Real Estate Mandate: A Legally Binding Contract Between Agency and Client
The real estate mandate is a contractual document that legally binds both the real estate agency and its client. Its drafting and implementation must strictly comply with legal requirements. Even a minor oversight or irregularity can result in the agent losing their commission and, in some cases, facing legal sanctions.
The mandate is more than a formality: it is the legal foundation of the agent’s involvement. It outlines the duties, obligations, and rights of each party. The Hoguet Law (1970) and the ALUR Law (2014) define its content and scope, and failure to comply can lead to serious consequences.
1. Validity Conditions of the Mandate: A Strict Framework to Follow
The mandate must be written, signed, and complete.
Without the signatures of both the principal (the property owner) and the agent, the mandate is null and void, and no commission may be claimed—even if the sale is successfully completed by the agency.
Mandatory Information to Include:
-
Full identity of all parties
-
Precise description of the property (address, surface area, co-ownership lots, technical diagnostics, etc.)
-
Duration of the mandate and renewal conditions
-
Commission amount and who is responsible for paying it (seller or buyer)
-
Termination conditions
-
Terms for reporting and accounting
-
Specific clauses (exclusivity, penalty clauses, commission in case of sale without agency involvement, etc.)
In the case of an exclusive mandate, the agent must detail all actions they commit to undertake in order to fulfill the assignment. The mandate must also specify the frequency and method of reporting to the principal.
⚖️ Key Case Law to Know:
In exclusive mandates, agencies must prove that they have been proactive. Any failure to act (no advertising, no property visits, no communication) may justify early termination of the contract or even compensation to the seller.
Special Case: Off-Premises Signing
Since the ALUR law and its harmonization with the French Consumer Code, a mandate signed at the client’s home or online is subject to a 14-day withdrawal period.
⚠️ A withdrawal form must be attached to the mandate.
2. Sanctions for an Irregular Mandate: Severe Consequences
A single omission in the mandate may render it unenforceable. This means:
-
The agent cannot claim any commission, even if the sale is completed,
-
Legal action can be taken if any commission was collected without a valid legal basis.
✅ Tip: Never start a mission without a written, dated, signed, and complete mandate.
3. Who Can Grant a Mandate? Important Precautions
The agency must ensure that those signing the mandate have the legal authority to dispose of the property:
-
Full owners
-
Bare owners and usufruct holders
-
Co-owners (in joint ownership)
-
Spouses or PACS partners, when the property is a family home—even if only one of them owns it
-
For a company: the person authorized by the bylaws or by a general assembly resolution
4. Key Points of Attention for Real Estate Professionals
✅ What professionals must always do:
-
Verify the legal capacity of the principal
-
Ensure the mandate complies with all formal requirements
-
Immediately provide a signed copy to the client
-
Respect the withdrawal period in the case of off-premises signing
-
Be able to justify all actions taken under the mandate, especially exclusives
🔚 Conclusion
The real estate mandate is far from a mere formality—it is a legally binding document. Poorly drafted or irregular mandates expose the agency to severe financial, civil, and criminal risks. Strict adherence to legal requirements is not just recommended—it is the only safeguard for both the agent and their client.
