Should the Owner of the Mandate Delegation be Informed?
In the context of real estate management, the question of transparency and communication is crucial, particularly when it comes to the delegation of mandates between agencies. The delegation of mandate allows a real estate agency to transfer certain responsibilities linked to the management of a property to another agency, while retaining overall responsibility for the mandate. However, this inter-agency collaboration raises an essential question: Should we inform the owner of the delegation of mandate?
This article explores this question, addressing the legal and ethical aspects of communication between agencies and the owner, while highlighting best practices for maintaining transparency and mutual trust.
1. Understanding the Real Estate Mandate Delegation
Before tackling the issue of communication with the owner, it is important to understand what the delegation of real estate mandate entails. The delegation of mandate is a contractual agreement which allows a real estate agency (the delegating agency) to transfer part of its responsibilities to another agency (the delegated agency). The delegating agency retains general control of the mandate, but the delegated agency takes care of certain specific tasks, such as promoting the property, managing visits or negotiating with potential buyers.
This practice is common in the real estate sector, because it makes it possible to broaden the visibility of a property, to use the resources of other agencies, and to optimize the management of complex mandates or those located in specific geographic areas.
2. The Importance of Transparency in Mandate Delegation
2.1 The Relationship of Trust with the Owner
One of the keys to success in the sale or rental of real estate lies in the relationship of trust between the agency and the owner. This bond is based on clear and honest communication between the parties. In this sense, the delegating agency has a moral responsibility towards its client, the owner, to provide him with all relevant information concerning the management of his property. Transparency is a fundamental principle that must not be neglected, particularly in the context of the delegation of mandate.
When the delegating agency entrusts certain responsibilities to another agency, it is legitimate for the owner to know who he must contact for the different stages of the management of the property. Informing him of this collaboration guarantees that he can follow the progress of his file in a clear and unambiguous manner.
2.2 A Legal or Ethical Obligation?
From a legal point of view, the question of informing the owner depends largely on the mandate contract signed with the delegating agency. In principle, the law does not expressly require the delegating agency to inform the owner of the delegation of mandate. However, several ethical practices and the rules that govern the real estate agent profession push for transparency.
Article 6 of the Hoguet law , which governs the activities of real estate professionals in France, stipulates that the agency must act with loyalty and transparency towards its client. Even if the law does not specify that the owner must be informed of the delegation of mandate, it seems reasonable, from a perspective of good faith, to inform him of it , especially when this could influence the management of his property.
On the other hand, the practices of the profession, particularly those of prestigious real estate agencies, often require transparency , by informing the owner of any external collaboration. This avoids any ambiguity and maintains the relationship of trust necessary for the success of the transaction.
3. Reasons for Informing the Owner of the Mandate Delegation
3.1 Respecting the Owner’s Trust
Informing the owner of the delegation of mandate means showing him fundamental respect: that of keeping him informed of the key stages of the management of his property. Indeed, when the owner entrusts a property to an agency, he expects his agent to make all decisions on his behalf. However, when another agency is involved, they may feel left out of the process. Informing them of the delegation allows them to feel part of the process, thus building trust in the agency.
3.2 Managing Owner Expectations
The owner of a property, especially if it is a prestigious property or one with a high financial stake, must be perfectly informed of the way in which his property is managed. By informing him of the delegation of mandate, the delegating agency allows the owner to manage his expectations realistically. For example, if there are differences in how the two agencies will manage the property, the owner can be better prepared for any situation that may arise. Additionally, it helps them know who to contact with any questions regarding the property, whether viewings or negotiations.
3.3 Ensuring Continuous and Consistent Communication
Informing the owner of the delegation helps ensure consistent communication between all parties involved. If the owner is informed about the collaboration between agencies, he will be able to easily understand who is making what decision and from whom he can obtain information at any time. This reduces the risk of confusion or misunderstandings, particularly if there is a conflict between agencies or if a question arises regarding the management of the property.
3.4 Promote a Better Customer Experience
Transparency in mandate management also helps improve the overall customer experience. As a property owner, knowing exactly who is responsible for what, and who they should contact for every aspect of managing their property, gives them a sense of control and satisfaction . This type of careful professional relationship can improve the agency's reputation, build owner loyalty, and potentially generate referrals and future business.
4. When and How to Inform the Owner of the Mandate Delegation?
4.1 When signing the Mandate Contract
The issue of informing the owner should ideally be addressed from the start of the contractual relationship, when signing the mandate contract . At this time, it is crucial to discuss transparently with the owner and explain to him the conditions under which the delegation could intervene. This will help set clear expectations from the start and avoid any misunderstandings in the future.
4.2 Written or Verbal?
Although the law does not require formal information in writing, it is always preferable to inform the owner of the delegation of mandate in writing, in the form of a letter or email , which can be added to his case. This approach guarantees traceability and makes it possible to formalize communication between the delegating agency and the owner. Such written information gives the owner a clear reference on the agencies involved in the management of the property and the responsibilities of each.
4.3 Maintain an Open Dialogue Throughout the Mandate
Information on the delegation of mandate should not be limited to the moment of signing the contract. It is important to maintain an open dialogue throughout the sale or rental process. The delegating agency must continue to keep the owner informed of important steps, visits carried out, and feedback obtained by the delegated agency.
5. The Risks of Poor Communication
A lack of information on the delegation of mandate can lead to legal and ethical problems . If the owner discovers that another agency has been involved without being informed, this may compromise the relationship of trust, or even lead to complaints or requests for termination of the mandate. A lack of communication can also make it more difficult to manage the owner's expectations, which can negatively affect the overall guest experience.
The question of whether to inform the owner of the delegation of mandate is essential both legally and ethically. Although the law does not expressly impose this obligation, it is in the interest of the delegating agency to maintain clear and transparent communication with the owner. By informing them of the delegation, the agency guarantees better management of client expectations, strengthens the relationship of trust and ensures a positive client experience . For real estate agencies, this commitment to transparency is not only a guarantee of professionalism, but also a key factor in optimizing the chances of success in the sale or rental of the property.
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Read our articles in this file Delegation of mandate between real estate agencies:
- Delegation of Mandate between Real Estate Agencies
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These links will allow you to provide a complete and fluid reading on the subject of delegation of mandate between real estate agencies, covering all the essential aspects.
