Search mandate: presentation and advantages
For the sale of a property, using the services of a real estate agency is common today, but it is less when it deals with the purchase.
The search mandate is a real estate contract allowing a real estate professional to search your future home. The real estate agent will therefore search for the optimal property in accordance with your instructions and criteria.
How does it work?
The principal (potential buyer) signs a contract with the agent (real estate professional) that sets his remuneration and the duration of the mandate. The agent’s fees are only due if this latter founds the right property.
In France, the search mandate is governed by the Hoguet and Alur laws which establish the obligations of the parties. The mandated real estate professional has an obligation of means and not of results. According to the law, he must present goods in accordance with the buyer’s criteria but is not held responsible if he has found nothing at the end of the contract.
What are the interests of a search mandate?
The search mandate takes effect on the day the contract is signed and ends up the day of the deed of sale if the property has been found. It includes the following services: analysis of the buyer’s requests, property research, organizing viewings and negotiating the price offer.
With the absence of financial compensation if the real estate agent doesn’t find the property sought, the search mandate is interesting on several levels:
- Targeted search, saving time and energy: The buyer no longer has to deal with research, and he saves unnecessary viewings. Indeed, the agent checks, before going on site, if the good presented are interesting.
- Off market: This provides access to properties that are not published on real estate portals and agency’s websites or even to properties that are not yet on sale.
- Advice and expertise: The agent may suggest solutions or geographic areas that the buyer might not have thought of. This latter will also be able to identify whether or not a property is a good opportunity or if it presents risks.
Building on its success, this type of contract is increasingly being offered in France.
Stone & Wood can assist you with your real estate search throughout an exclusive search mandate for a period of 3 months minimum.
Do not hesitate to contact us for more information.