Requesting Identification from a Prospective Buyer: A Legal Obligation Serving Professionalism

In real estate transactions, requesting identification from a prospective buyer is often perceived as an administrative burden. However, this legal obligation, while governed by strict regulations such as Article L. 561-5 of the French Monetary and Financial Code, can become a powerful tool for enhancing the professionalism of real estate agents. By adopting a clear and proactive approach, professionals can transform this requirement into a competitive advantage and strengthen client trust.

1. Legal Constraint: An Essential Obligation

a. The Fight Against Money Laundering and the Financing of Terrorism (AML/CFT)

The identification and verification of the identity of purchasers are part of the Tracfin regulations, implemented to combat money laundering and the financing of terrorism. This obligation requires:

• Verification of valid identity documents (passport, national identity card).
• Data retention for at least five years, in accordance with the requirements of the Monetary and Financial Code.

b. Sanctions for Non-Compliance

Failure to comply with these obligations can result in severe penalties, including a ban on practicing or the withdrawal of a professional license. In 2018, 70% of the sanctions imposed by the National Sanctions Commission concerned real estate agents, highlighting the importance of this requirement.

2. Transforming Legal Constraint into a Tool of Professionalism

Rather than viewing this obligation as a hindrance, real estate agents can use it to demonstrate their seriousness and commitment to security and transparency.

a. Demonstrate a Professional Attitude

Asking for identification, without apologizing, demonstrates a rigorous, professional approach. It is essential to explain to prospective clients that:

• Trust does not preclude control : Ensuring the security of visited properties is a priority.
• Systematic verification is a sign of seriousness : It proves that the agency follows the best practices in the sector.

b. Using the Law to Gain Trust

By explaining that this request complies with legal obligations and aims to protect all parties, agents can reassure prospective clients. Here's how to approach this process:

• When making an appointment , ask the buyer to bring an identity document, without needing a detailed explanation.
• If the prospect expresses doubts, explain that this procedure is common and that it guarantees the safety of the visits.
• Put him in the seller's shoes : "If this were your house, would you want strangers to be able to visit it without any checks?"

c. Case Study: The Lesson of Experience

During a training session, real estate agents shared that they have systematically requested identification ever since a property was burglarized after a viewing. The police had asked them for the visitors' identities, but without this information, the investigation was complicated. This experience highlights the importance of identification.

3. Identity Verification: A Guarantee of Commercial Efficiency

a. For Buyers: Ensuring the Safety of Viewings

Requiring identification ensures the safety of owners and their property. It also helps to screen serious visitors, thus limiting unnecessary visits.

b. For Sellers: Ensuring the Legality and Efficiency of the Transaction

When taking on a mandate, verifying the seller's identity is essential to ensure they are indeed the owner of the property. This also helps secure the transaction and avoid future disputes.

c. A Coherent Approach

Adopting a systematic identification policy for buyers and sellers demonstrates consistency in approach and reassures both parties about the seriousness of the agency.

4. Best Practices for Professionals

a. Data Collection and Compliance with the GDPR

The personal data collected must be protected in accordance with the General Data Protection Regulation (GDPR):

• Inform the prospect of the reasons for the data collection and the data retention period.
• Ensure data security by using secure systems.

b. Transparent Communication

Establishing clear communication from the outset of the relationship is essential for building trust. Provide an explanatory note detailing:

• The agency's legal obligations.
• The purpose of data collection.

c. Alternative: Visual Inspection

In some cases, a simple visual check of the identity document may suffice. This helps reassure potential customers while complying with legal requirements.

5. Conclusion: Making Compliance with Obligations an Asset

Complying with legal obligations related to identifying prospective and current sellers is much more than an administrative burden. It's a powerful tool for enhancing the professionalism of real estate agents, inspiring trust, and ensuring the security of transactions. By adopting a proactive, transparent, and rigorous approach, agencies can position themselves as trusted intermediaries and leverage their expertise in a competitive market.

Demonstrate your professionalism by respecting legal obligations: this is how you will gain the trust of your clients and consolidate your reputation for excellence.

Legal constraint

Article L561-5 of the French Monetary and Financial Code mandates the identification and verification of customer identity. Articles R561-5 and R561-5-1 of the same Code specify the information to be verified for individuals and companies. This legal obligation falls under the Tracfin regulations, which combat money laundering and terrorist financing.

“Show your professionalism,” says Caroline Dubuis Talayrach, lawyer

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