Decree of 10 January 2017: a new layer of regulation for property professionals

The latest decree affecting property professionals was published and came into force on 1 April. Display of fee scales, advertising requirements, it is time to review these latest changes!

A reform… but for whom?

All professionals involved in a sale or rental transaction are affected. This naturally includes estate agents, but not only: notaries and property managers will also be subject to the same requirements.

Display of price scale and application of the scale

The professional must display the fees for the services they offer. This means the scale must appear in the window of traditional agencies but also be easily accessible on the website. The scale may provide for fixed fees or a percentage of the sale price.

The decree emphasises that the displayed fees must be the fees actually charged. It is therefore prohibited to inflate fees in order to subsequently offer a “false discount” to clients. The displayed prices must be those charged in a majority of sales transactions. If a discount is permitted, it must remain exceptional and limited, and only downwards, justified by particular circumstances of the file.

Sales advertisements and price display

Where the fees are payable by the buyer

The advertisement must display the sale price with and without fees but also the percentage of fees calculated on the price excluding fees. A standard mention “fees payable by the buyer” must also appear. For reference, notary fees are not calculated on the agent’s fees where the fees are payable by the buyer.

Where the fees are payable by the vendor

A standard formula “fees payable by the vendor” must appear in the body of the advertisement. However, no mention such as “FAI price” or “price including agency fees” must appear.

For reference: the sales mandate determines, once and for all, who is responsible for the fees. It is prohibited to shift the burden of fees from vendor to buyer thereafter.