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  5. Agreements concluded by real estate professionals and information to clients: Entry into force of Decree 2015-724 dated June 24th 2015

Agreements concluded by real estate professionals and information to clients: Entry into force of Decree 2015-724 dated June 24th 2015

Publié le : 07/07/2015 07 juillet juil. 07 2015
2015
2015 / Juillet

Real Estate Law

Source: D. n° 2015-724, June 24th 2015 - JO June 26th 2015

The Decree n°2015-724 dated June 24th 2015, regulating the conditions under which the activities related to certain operations concerning properties and businesses can be exercised, is used for the application of the provisions of part I of article 24 of the Law n°2014-366 dated March 24th 2014, for the access to housing and a renovated urban planning.

Its objective is to regulate the agreements concluded by real estate professionals and the information to their clients, my amending:

- The Decree n°72-678 dated July 20th 1972, regulating the conditions of application of the Law n°70-9 dated January 2nd 1970.

- The Law n°70-9 dated January 2nd 1970, regulating the conditions under which the activities related to certain operations concerning properties and businesses can be exercised.

It applies to real estate professionals, persons entitled by the professional card's owner, institutions' directors, owners of the professional card showing the mention "Listing Trader", as well as their clients.

According to the decree, applicable from July 1st 2015:

- The amount owed in application of the clauses appearing in certain mandates given to professionals is now capped. Therefore, when a mandate comes with a clause of exclusivity or a penal clause, or when it includes a clause, in which terms the fees will be due by the principal even if the operation is concluded without a third party, this clause can only be applied if it results from a specific provision of a mandate, of which one original copy was given to the principal. This clause must be very clearly mentioned and cannot provide the payment of a sum superior to the amount of the fees indicated in the mandate for the operation to be realised.

Then, the decree specifies, in its articles 2 and 3, the conditions and the modalities of the reimbursement of the remuneration unduly paid to the listing trader.

As a reminder, the activity of listing trader consists in proposing to persons searching to rent a property, lists of owners, against a membership to this service. Listing traders are also called renting agencies with no commission.

From now on, under the provisions of articles 2 and 3 of the decree of June 24th 2015:

- The agreement concluded between the client and the owner of the card showing the mention: "Listing Trader" must specify its objective, its length, the characteristics of the property sought, the amount of the remuneration agreed, as well as the conditions of its partial or total reimbursement;

- The clause related to the conditions of reimbursement must be very clearly mentioned. It specifies that the client who seeks the reimbursement of the remuneration must inform the listing trader by writing, handed against signature or by Registered Letter with Acknowledgment of Receipt.

- Therefore the listing trader has a fifteen-day delay from the day when he handed his request or when the registered letter was first presented, to proceed with the reimbursement or motivate his refusal by writing.

- The reimbursement has to be made in one payment and no fees whatsoever can be incurred. The owner of the professional card makes this payment through the same method of payment that the one the client used to pay him in the first place, except a specific agreement from the client to use another method of payment.

- The agreement also reminds that it is forbidden for the card's owner to receive a payment prior to the perfect execution of his obligation to actually provide the lists or files (D. July 20th 1972, art. 79-2).

- The information provided in the article 4-1 of the Law dated January 2nd 1970 (information to the client by the professional prior to the conclusion of any contract with a company, potential direct links of a capitalistic or legal nature that they have with this company) has to be established by writing by the professional at the time when he proposes to his client the services of a company, a bank or a financial society. This written document, presented in a readable and understandable way, is given by the professional to his client at the same time as the proposal of services. The proof of delivery of this information can be made by any means. It must be kept by the professionals mentioned in article 4-1 (D. July 20th 1972, art. 95-2).
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