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Estate
agents (Part 1) -
An introduction to estate agents in France -
Who
can be an estate agent in France
?
In
order to be an estate agent, it is necessary to obtain authorisation from
the local government administration. Access
to the profession is regulated and only individuals who have a certain
level of qualification (a law degree for example) or experience (ten years
salaried experience in an estate agency) can obtain the authority to
practice as an estate agent. This
authorisation is renewed on an annual basis.
In
addition to the estate agent’s employees, there are also what are known
as commercial agents (agent commercial).
A commercial agent has a contract with an estate agent to market
and sell property on his or her behalf.
He or she is registered as working in this capacity with the local
government administration.
How
is the industry regulated?
There
are two organisations which regulate the estate agency profession: FNAIM
and SNPI. Most estate agents
are members of one of these industry regulators and these bodies will
hear complaints against members and sanction them if necessary.
Are
they covered by professional indemnity insurance?
Cover
by professional indemnity insurance is a pre-requisite to obtaining
authorisation to be an estate agent. The
nature of the insurance will depend upon whether the estate agent deals
solely with real estate transactions or also becomes involved in
management (rental e.t.c.). It
is this insurance which will compensate an individual in the event that
the estate agent has been negligent or otherwise not complied with his or
her professional obligations. A
commercial agent will be covered by the estate agent’s professional
indemnity insurance. Additional
insurance cover is required where the agent is able to act as an escrow (séquestre)
and hold client’s money.
How
can the status of an estate agent be checked?
You
are entitled to see proof of their registration as an estate agent and
their insurance cover (this should in any event be displayed on the
premises). If you have doubts
about the validity of an agent’s registration you can contact the local
prefect’s office (préfecture), chamber of commerce (chambre du
commerce) or the regulatory body of which the agent purports to be a
member.
Part
2 – The remuneration of estate agents (next week)
17/03/2003
- Issue of the week
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