by User_62121 on Thu Nov 12, 2009 4:49 pm
I have read with interest the various entries on the Forum about property search agents, and offer the following comments, which I hope may be of interest.
Estate agents in France are governed by the loi Hoguet of 1970/1972 wich has not been substantially modified in the last 37 years and has accordingly not generally kept abreast of developments in the property sector. The only significant text is a ministerial reply of 12 August 2008 which tried to clarify whether individuals and firms classifying themselves as property searchers came under the loi Hoguet or not.
The text is fairly explicit, even though it has been criticised mainly by people representing the estate agency sector, but in brief states that "if the mission of the property searcher is restricted to searching a property, remunerated directly by the client ('mandant'), this activity remains outside the application of the loi Hoguet of 2 January 1970 and the decree of 20 July 1972 (Réponse Ministérielle, Q. no. 20525, Official Journal 12 August 2008, page 6987°).
The problem area seems to centre around remuneration of the searcher by a percentage of an agency commission - bearing in mind as well that some 50% of French property sales only pass through agents (the remainder being private sales between individuals).
And what about those holding an agency "carte professionnelle" who (claim to) act as (independent) property searchers, when in fact they are doing no more than they would in response to a request from a client seeking a property, perhaps being a little more pro-active and entering where necessary into commission sharing arrangements with another agency. I have worked in a French estate agency and this was normal daily practice though we did not hold outselves out to be "property searchers".
A further growing area is that of "relocation consultants", working either for individuals or their firm, whose role is to find a sale or rental property for clients moving to a new region, for work or other reasons, and who need help in locating a property, moving in and dealing with all the associated formalities, for themselves and their family. Should this also be regulated?
Critics of the ministerial reply cited above claim that there is a thin dividing line between "searching" and "negotiation" and that it is difficult to see how anyone helping a client find a property cannot also advise him/her about whether they think it is correctly valued or not, though the actual price negotiation could - and supposedly should - be undertaken by the agent handling the sale if there is one, but in 50% of cases there may not be. What is the law here?
In summary, the law has failed to keep up with the times, and while it is important and reassuring that estate agents are fully qualified and insured, particularly where they handle client monies, a property searcher/adviser/consultant could also be equally or more qualified, and carry the appropriate professional liability cover. The French estate agency profession is already dogged by the peculiar problem of the "agent commercial", often very loosely associated with his/her principal (who holds the carte professionnelle) and recruited ad hoc at short notice, at no cost to the agency and with sometimes little professional experience.
Anyone seeking to use - or not - a property searcher has a free choice in the matter, and the option to check out the credentials of the person offering the service.
P-D de Rouffignac MA LLM
If you know which areas you wish to look the notaries can help for free. Some are more active than others. Yet details, perimeter’s and price range would aid the search of there files. Most have there ears and eyes out in the local communities which they otherwise deal with so have intimate knowledge of areas!
otherwise. I know some and they can get good deals as well!