The sales mandate for a luxury property

The simple non-exclusive sales mandate

The non-exclusive simple sales mandate is a contract in which the owner of real estate (the principal) entrusts a real estate agency (the agent) with the mission of selling his property, without exclusivity. This means that the owner can continue to sell the property himself or with other real estate agencies. The agent cannot claim a commission on the sale if he is not the author of the sale.

The exclusive sales mandate

An exclusive sales mandate is a contract in which the owner of real estate (the principal) entrusts a real estate agency (the agent) with the exclusive mission of selling his property for a specific period. This means that the owner cannot sell his property himself or with other real estate agencies during the term of the mandate. In exchange, the agent is entitled to a commission on the sale if he is the author of the sale, even if it is carried out by another real estate agent from the same agency.

What are the advantages of entrusting the sale of a luxury property to an exclusive mandate?

There are several advantages to entrusting the sale of a luxury property to an exclusive mandate:

1. Greater visibility: by entrusting the sale to a real estate agency with an exclusive mandate, the property benefits from greater visibility among potential buyers, thanks to the different communication channels used by the agency (website, social networks, mailing , etc.).
2. Better expertise: a real estate agency specializing in the sale of luxury properties has expertise and market knowledge that can help to best value the property and find the most qualified buyers.
3. More effective negotiations: thanks to its experience and knowledge of the market, a real estate agency can conduct negotiations more efficiently, targeting the most interested buyers and having a better understanding of their needs and expectations.
4. More efficient management: by entrusting the sale to an exclusive mandate, the owner can concentrate on his daily activities, while the agency takes care of all the tasks related to the sale (visits, negotiations, etc.).

What are the mandatory clauses on a sales mandate?

There are mandatory clauses which must appear in a sales mandate, whether exclusive or non-exclusive, they are:

1. Description of the property: There must be a precise description of the property, including its address, its characteristics, its general condition, its sale price, and any elements included or excluded.
2. The duration of the mandate: There must be a start date and an end date for the mandate, as well as a clause for automatic renewal or not.
3. The amount of the commission: There must be a clause which specifies the amount of commission due to the real estate agency in the event of a successful sale, as well as the payment terms.
4. The obligations and powers of the agency: There must be a clause which defines the obligations and powers of the real estate agency in relation to the promotion and marketing of the property, as well as the actions it is authorized to undertake.
5. Obligations and powers of the owner: There must be a clause that defines the obligations and powers of the owner in relation to the sale of the property, as well as the actions he is authorized to take.
6. Termination clauses: There must be a clause that defines the conditions for terminating the mandate, as well as the consequences in the event of early termination.

Is the amount of the agency commission free and negotiable?

The amount of agency commissions is generally free and negotiable, however it may vary between agencies and regions. Agency commissions generally range between 3% and 7% of the sale price, but may be higher or lower depending on the circumstances.

It is possible to negotiate commissions with real estate agencies, but this will depend on several factors such as the reputation of the agency, the difficulty of selling the property, the local real estate market, competition, etc. Owners can compare the different offers and conditions offered by agencies to choose the one that suits them best.

It is important to note that agency commissions are generally paid by the seller, but it is possible that in certain cases, the buyer assumes these costs. It is therefore important to fully understand the terms of the contract before signing a sales mandate .

What is the difference between an agency commission charged to the seller and charged to the buyer?

The difference between an agency commission paid by the seller and a commission paid by the buyer lies in the fact that, in the first case, it is the seller who pays the commission to the real estate agency, while in the second case, it is the buyer who pays the commission.

A seller's commission is generally more common and is practiced in most cases. The seller pays the commission to the real estate agency for the services they provided to sell their property. This means that the sale price of the property must take into account the amount of the agency commission, so it is often included in the displayed price.

A commission payable by the buyer is less common, but can be applied in certain cases. In this case, the buyer pays the commission to the real estate agency for the services it provided in finding and negotiating the purchase of the property. The agency commission is not included in the displayed price of the property, but is invoiced separately to the buyer.

What are the transfer costs in the event of an agency sale with buyer's commission or seller's commission?

Transfer fees in France are taxes paid when selling real estate. They are calculated on the basis of the sale price of the property and vary according to region.

It is therefore important to contact a real estate agent or notary to find out the costs that will be linked to the real estate transaction.

• Sale carried out by an agency with a mandate which provides for an agency commission paid by the seller:

In the case of a sale with commission payable by the seller, the transfer costs are generally paid by the buyer. But the transfer costs are calculated based on the entire price paid by the buyer, namely the price of the property + the amount of the agency commission (included in the overall price displayed).

• Sale carried out by an agency and a mandate which provides for an agency commission paid by the buyer:

In the case of a sale with commission payable by the buyer, the transfer costs are generally paid by the buyer in addition to the purchase price of the property, the calculation basis of which is the sole price of the property ( commission excluded); the agency commission charged to the buyer is paid in addition to the price of the property.

The transfer costs are therefore lower if the mandate stipulates a commission charged to the buyer, the amount of the commission will therefore be excluded from the basis for calculating the transfer costs which will only relate to the price of the property (excluding commission) , possibly deducted from the price of the movable property transferred with the property.

To reduce transfer costs, it is wise to exclude from the sale price of the property, at the time of the sales agreement, the value of any movable property possibly transferred (kitchen, household appliances or other). In this case, the transfers do not take into account the value of the movable property sold with the property.

Properties de Charme is a real estate advertisement portal in France specializing in the sale of charming, prestigious and characterful properties. It offers a selection of unique properties, ranging from country houses to mansions, Haussmann apartments, castles, historic residences and more. The site offers detailed listings with photos and property information, as well as help finding the property of your dreams. It aims to provide a premium real estate search experience to buyers and investors looking for premium properties.