click to enable zoom
We didn't find any results
open map
View Roadmap Satellite Hybrid Terrain My Location Fullscreen Prev Next

£ 0 to £ 6,000,000

More Search Options
We found 0 results. View results
Your search results

Real estate brokerage: why do you have to sign a mandate ?

Posted by Michel on June 1, 2021

Are you about to embark on a real estate investment and you want to hire a real estate broker? You will therefore probably sign a mandate contract.

What is an agency contract?

A mandate contract is a legal instrument that authorizes a third party to carry out specific tasks on your behalf.

In the context of real estate brokerage, you are the principle who authorizes your real estate broker (agent) to represent you in your credit search with the banks.

You gain assurance by signing this obligatory and legal document of representation since the field of representation for which your real estate broker is hired is clearly defined and established.

What content must be included in the real estate broker’s mandate contract?

The sole purpose of a real estate broker’s mandate is to assign this specialist the task of locating the finest financing terms for your real estate project. It must provide the following information in order to do so:

  • The mission has a definite definition.
  • Fees are broken down into brokerage and transaction fees. Its relationship with a single financial institution, or its exclusive cooperation deal with a certain bank.
  • Its connection with a single financial institution, or its exclusive collaboration deal with a single bank.

In terms of format, the mandate contract may be signed either in person or online for completely virtual support. The Pretto website, for example, is a forerunner in this all-digital offering.

The mandate is signed using an electronic signature in the event of a real estate brokerage employing a digital platform. To do so, write a signature on white paper by hand, scan it, and insert it in the section of the electronic contract designated for this mention.

If it is validated in line with the one put on your identity documents, an electronic signature has the same significance as a manual signature.

What about the content of the mandate for a 100% online brokerage?

Pretto, a digital brokerage platform, has a contract that we have noticed for you. The data is open and accessible. The following are the specifics:

  • A reminder of the real estate platform’s legal notifications.
  • A full description of the objective of the contract for Pretto’s services in this brokerage transaction. The price of the broker’s service is also mentioned. Surprisingly, it costs half as much as typical brokerage fees.
  • Obligations of the principal: in particular, the delivery of documents and information for the establishment of the file, as well as the principal’s solvency with the Banque de France;
  • Obligations of the agent: reviewing several credit proposals, supporting the file, and negotiating with financial institutions.
  • The platform’s presentation demonstrates its independence from banks.
  • The exact compensation is less than 1%, and it comes from the lending bank rather than the principle.
  • Alternative claims or remedy in the case of a disagreement, as well as respect for sensitive information.

The mandate is mandatory for a real estate brokerage service

Aside from ensuring the proper execution of the brokerage mission, the mandate’s signature is also required since, in performing his duties, the real estate broker discloses your sensitive records to the financial institutions with which he interacts. as well as confidential information

Indeed, you will provide him with your identity documents as well as any details about your personal and financial life while putting up your loan file. The warrant is necessary in order to protect you. The broker must also obtain your permission to utilize these materials from you.

What do you agree to when signing the real estate brokerage mandate?

By signing an agency contract, you authorize the broker to do home loan research on your behalf.

Keep in mind, however, that you always have the option of doing your own research. If you go this route, you’ll need to go to your broker since the rate discussions he sets up with banks that you contact directly will fail.

Another alternative is to use a different broker. However, this is not the ideal strategy because they would be competing with each other rather than aiding one other. As a result, the rates you receive will not be better.

It’s vital to note that the brokerage agreement does not obligate you to pay any fees to your agent if he is not the source of the finest mortgage terms you’ve found and want to take out.

Furthermore, agents cannot demand payment from the principle before signing the credit agreement, according to Article L321-2 of the Consumer Code.

Leave a Reply

Your email address will not be published.

  • Property Search

    £ 0 to £ 6,000,000

    More Search Options
  • Reset Password

Compare Listings