Remuneration
France
In order to clearly understand the remuneration system, it is vital to make a distinction between the transactional real estate agent, the property administrator and the co-ownership association.
The transactional real estate agent:
* The real estate agent's fees are set freely.
* The principal pays, having been apprised of the real estate agent's fees, which are obligatorily displayed in the agent's window and indicated in the mandate.
* Said fees are only due on concluding the transaction, not before.
* At the present time, under the terms of the Hoguet law of 2 January 1970, no remuneration may be granted prior to the final conclusion of the transaction. Faced with the demand for increasingly segmented services on the part of consumers, FNAIM is today very actively involved in the fight to rework the Hoguet law to enable real estate agents to offer a very broad range of services and tailor-made remuneration possibilities.
The real estate agent can choose whether or not to cash in funds; he/she must, in all cases, provide proof of the following:
* financial cover intended to guarantee the funds deposited by customers. Said financial cover is fixed, according to the previous calendar year, at 120,000 Euros minimum for those who cash in funds (40,000 Euros for those who do not). It then increases in increments of 20,000 Euros.
* insurance against the pecuniary consequences of civil liability that may be incumbent upon him/her on the grounds of his/her activity.
The property administrator:
* The property administrator's total fees are fixed in the mandate signed with the lessor.
* The fees are set freely.
* They are generally calculated as a percentage of the monthly rental.
The administrator, the transactional agent and the association, are required to show proof of financial guarantee and professional civil liability cover.
The co-ownership association:
In the case of the co-ownership association contract, the fees are annual and are set freely between the parties. (Generally speaking, the fees are a sum exclusive of taxes per parcel of land comprising the co-ownership.)
The transactional real estate agent, the property administrator or the co-ownership association may be controlled by the DGCCRF (Office for Competition, Consumption and Repression of Fraud). Furthermore, FNAIM members' activities are also controlled by the FNAIM Real Estate Guarantee Fund.