Delegation of Mandate: Inform the Selling Owner?
In property management, transparency and communication remain crucial, especially when a mandate is delegated between agencies. This practice allows one agency to transfer certain responsibilities related to managing a property to another agency, while retaining overall responsibility for the mandate. It naturally raises a key question: should the selling owner be informed of this delegation?
Understanding Real Estate Mandate Delegation
Delegation of mandate is a contractual agreement allowing a delegating agency to transfer some of its responsibilities to a delegated agency. The delegating agency retains overall control of the mandate, while the delegated agency takes on specific tasks—property promotion, managing viewings, and negotiating with potential buyers. This practice remains common in the sector, as it allows for broader visibility of a property and the mobilization of resources from other agencies, particularly for complex mandates or those located in specific geographic areas.
Why Transparency Remains Essential
A Relationship of Trust to Preserve
The success of a sale or rental largely depends on the relationship of trust between the agency and the owner, itself based on clear and honest communication. The delegating agency retains a moral responsibility to its client: to provide them with all relevant information regarding the management of their property. When another agency is involved, it remains perfectly reasonable for the owner to know precisely who to contact at each stage of the process.
A Legal Obligation or Simply a Deontological One?
From a legal standpoint, the issue largely depends on the agency agreement signed with the delegating agency: the law does not explicitly require informing the property owner of the delegation. However, Article 6 of the Hoguet Law, which governs the activities of real estate professionals, mandates acting with loyalty and transparency towards the client. Even without an explicit obligation, it seems reasonable to inform the owner, particularly when this could influence the management of their property. High-end agencies often adopt this transparency as a professional standard, in order to avoid any ambiguity and preserve the relationship of trust necessary for a successful transaction.
Why Inform the Owner
Respect the Trust Placed
Informing the property owner about the delegation of management demonstrates fundamental respect: keeping them informed of key stages in the management of their property. When they entrust their property to an agency, they expect the agency to make decisions on their behalf. If another agency intervenes without their knowledge, they may feel excluded from the process—transparent communication, on the contrary, strengthens their trust.
Managing Expectations Realistically
For a high-value property or one with significant financial implications, the owner must remain fully informed about how their property is being managed. Understanding the delegated management structure allows them to anticipate potential differences in how the two agencies operate, and to know precisely who to contact depending on the nature of their question – viewing, negotiation, or administrative follow-up.
Ensuring Consistent Communication
Keeping the owner informed ensures consistent communication between all parties. By understanding who makes which decision, they avoid confusion in case of questions or, more rarely, disagreements between the agencies involved in marketing their property.
Enhancing the Customer Experience
Knowing precisely who is responsible for what, and who to contact for each aspect of management, gives the owner a sense of control and satisfaction. This carefully cultivated professional relationship contributes to the agency's reputation, fosters client loyalty, and encourages future referrals.
When and How to Inform the Landlord
Upon signing the mandate
The issue of information should ideally be addressed at the very beginning of the contractual relationship, when the mandate is signed. Clearly explaining to the owner the conditions under which delegation could occur allows for clear expectations to be established and avoids any subsequent misunderstandings.
Prioritize the written word
Although the law does not require any formal notification, informing the landlord in writing—by letter or email—remains the safest practice. This approach ensures traceability and provides the landlord with a clear overview of the agencies involved and their respective responsibilities.
Maintaining Dialogue Throughout the Mandate
Information about the delegation should not be limited to the signing of the contract. The delegating agency must continue to keep the owner informed of important steps—visits carried out, feedback obtained by the delegated agency—throughout the entire process.
The Risks of a Communication Failure
A lack of information regarding the delegation of services can lead to legal and ethical difficulties. If the property owner discovers that another agency has been involved without their knowledge, the relationship of trust can be compromised, potentially resulting in complaints or requests to terminate the agreement. This lack of communication also complicates managing client expectations, negatively impacting their overall experience.
Transparency in the Service of Success
Informing the property owner of the delegated mandate is both a legal and ethical imperative. While the law does not explicitly mandate this obligation, maintaining clear and transparent communication remains in the direct interest of the delegating agency. This transparency ensures better management of client expectations, strengthens the relationship of trust in the long term, and is a key factor in maximizing the chances of a successful sale or rental of the property.