Model Delegation of Mandate for Real Estate Sales Between Agencies

Model Delegation of Mandate for Real Estate Sales Between Agencies

This real estate mandate delegation model allows two agencies to formalize a collaboration on the sale of the same property. It details the respective commitments of the parties and specifies the conditions for exercising the delegation, in order to secure the relationship between the agency holding the initial mandate and the agency to which the marketing is delegated.

Preamble: The Legal Framework of the Delegation

Under Article 1 of the Hoguet Law of January 2, 1970, real estate professionals may delegate a sales mandate to another professional holding a professional real estate agent's license (Carte T). While a written agreement is not legally required, it is strongly recommended to avoid any disputes or ambiguities between the parties. This written document formalizes the respective commitments and specifies the terms of the delegation.

This contract aims to formalize the delegation of a real estate mandate, defining the obligations of each agency for the sale of the property detailed below.

In its ruling of January 9, 2019 (no. 17-27841), the Court of Cassation confirmed that the Hoguet Law of January 2, 1970, does not apply to relationships between real estate professionals. Therefore, the delegation of authority can be verbal and does not require any mandatory written formalization. However, it remains strongly recommended to formalize this agreement in writing to clarify the commitments of each party and avoid any ambiguity.

REAL ESTATE MANDATE DELEGATION AGREEMENT BETWEEN AGENCIES

BETWEEN THE UNDERSIGNED PARTIES:

1. THE PRINCIPAL (DELEGANT) AGENCY

• Company name : [Name of the client agency]
• Legal status : [SARL, SAS, EI, etc.]
• Registered office address : [Full address]
• RCS : [Registration number]
• Professional card : No. [Card number] issued by the [competent Chamber of Commerce and Industry]
• Represented by : [Name and surname of the legal representative], acting in the capacity of [Position: manager, director, etc.]
• Telephone : [Phone number]
• Email address : [Contact email]

Hereinafter referred to as “The Mandating Agency”, or “The Delegating Agency”,

2. THE AGENT (DELEGATOR)

• Company name : [Name of the delegated agency]
• Legal status : [SARL, SAS, EI, etc.]
• Registered office address : [Full address]
• RCS : [Registration number]
• Professional card : No. [Card number] issued by the [competent Chamber of Commerce and Industry]
• Represented by : [Name and surname of the legal representative], acting in the capacity of [Position: manager, director, etc.]
• Telephone : [Phone number]
• Email address : [Contact email]

Hereinafter referred to as “The Mandated Agency”, or “Delegate”,

ARTICLE 1 – PURPOSE OF THE DELEGATION

1.1. Description of the property
The delegation concerns the property described as follows:

• Property type : [House, apartment, building, land, etc.]
• Address : [Full address of the property]
• Total area : [Number of m²]
• Detailed description :
  • Number of pieces: [X pieces]
  • Year of construction: [XXXX]
  • Amenities included: [Swimming pool, garage, cellar, elevator, etc.]
  • Technical assessments provided: [Energy Performance Certificate, lead, asbestos, etc.]
• Fixed selling price : [Amount in euros]

1.2. Nature of the initial mandate

• Initial mandate : Exclusive / Simple (check the relevant option)
• Date of signature of the initial mandate : [Date]
• Initial mandate number : [Reference number]
• Validity of the initial mandate : [Remaining duration of the initial mandate]

1.3. Scope of Delegation
By this contract, the Principal Agency authorizes the Agent Agency to:

• Looking for a potential buyer.
• Publish real estate advertisements on its communication channels.
• Organize and conduct property viewings.
• Negotiate with potential buyers.
• Submit all offers to the Mandating Agency for validation.

ARTICLE 2 – DURATION OF THE DELEGATION

This contract is concluded for a period of: [X months].

The delegation takes effect from [Date] and will end on [End date], unless renewed expressly agreed by both parties.

ARTICLE 3 – OBLIGATIONS OF THE PARTIES

3.1 Obligations of the Mandating Agency

The Mandating Agency undertakes to:

1. Send a copy of the original signed mandate to the Mandate Agency.
2. Provide all necessary documents relating to the property:

• Mandatory technical diagnostics.
• Title deed.
• Detailed plans and descriptions.

3. To guarantee the legal validity of the initial mandate.
4. Inform the Mandated Agency immediately of:

• Any modification to the initial mandate.
• Any current purchase offers.

3.2 Obligations of the Mandated Agency

The Mandated Agency undertakes to:

1. Respect the sales conditions defined in the initial mandate (price, fees, etc.).
2. Ensure active marketing of the property:

• Dissemination of advertisements on its communication channels (websites, specialized portals, etc.).
• Professional presentation of the property (photos, virtual tours, etc.).

3. Conduct viewings with potential buyers.
4. Forward all written offers from prospective buyers to the Mandating Agency without delay.
5. Do not modify the terms of the mandate without prior authorization.

ARTICLE 4 – FEES AND ALLOCATION

4.1 Amount of fees
The transaction fees are set at [Percentage or amount in euros] of the sale price, in accordance with the initial mandate.

4.2 Allocation of fees
In the event of a successful sale, the allocation of fees will be as follows:

• [X %] for the Mandating Agency.
• [X %] for the Mandated Agency.

4.3 Payment Terms
Fees will be paid upon signing the authentic deed at the notary's office. The notary will then proceed directly with the agreed distribution between the agencies.

ARTICLE 5 – RESPONSIBILITIES OF THE PARTIES

5.1 Responsibility of the Mandating Agency

The Mandating Agency remains responsible to the seller for compliance with the terms of the initial mandate.

5.2 Responsibility of the Mandatory Agency

The Mandated Agency is responsible for the steps taken within the framework of this delegation, including:

• The quality of information provided to buyers.
• Compliance with legal obligations regarding transparency and publicity.

ARTICLE 6 – CONFIDENTIALITY

The parties agree not to disclose any confidential information relating to:

• Regarding the real estate.
• Regarding the identity of potential sellers and buyers.

This obligation will survive the termination of this contract.

ARTICLE 7 – TERMINATION

In the event of a serious breach of the obligations stipulated in this contract, termination may be pronounced after a formal notice has remained unsuccessful for [X days].

ARTICLE 8 – DISPUTES

Any dispute relating to the execution of this contract shall be submitted to the competent courts within the jurisdiction of the registered office of the Mandating Agency.

ARTICLE 9 – GENERAL PROVISIONS

The parties declare that they have read the terms of this contract and accept them without reservation.

Done in duplicate, at [Location], on [Date]

The Mandating Agency
[LAST NAME, FIRST NAME, POSITION]
Signature and stamp

The Agency Representative
[LAST NAME, FIRST NAME, POSITION]
Signature and stamp

APPENDICES

1. Copy of the original signed mandate.
2. Documents relating to the property.

Note : This template covers every aspect of a real estate mandate delegation in detail. Before signing, it is advisable to have it reviewed by a legal professional specializing in real estate.

Delving deeper into the topic of Delegation of Mandate

This model is part of a larger dossier dedicated to the delegation of mandate between real estate agencies, covering in particular the applicable legal framework, the respective interests of the principal agency, the agent agency and the owner, good practices for communication and sharing of fees, as well as common mistakes to avoid to guarantee successful collaboration between professionals.