Real Estate Agent's Rights and Obligations in Case of Seller's Refusal

Extract

[...] The signature of the sale mandate by the client-seller. It will also be assumed that the client-buyer has not been canvassed at his home for the signature of the mandate, but that he has presented himself of his own accord in the offices of the real estate agent to put his immovable property on the market. Under these conditions, no cooling-off period can be invoked by the seller to bring the mandate to an end prematurely, regardless of the nature of the mandate (simple or exclusive). [...]

[...] Acquisition of a property through a real estate agent CASE STUDY Commissioned by a seller, a real estate agent finds a potential buyer who agrees to purchase the property at the price and under all the conditions required by the said seller. Through the real estate agent, a purchase offer to this effect is transmitted to the seller. Is the contract formed? Can the real estate agent claim a fee or compensation in the event of the seller's refusal of the offer motivated by a higher purchase price offer from another potential buyer? I. Analysis of the situation A. The facts The real estate agent is commissioned by a seller to find a potential buyer. [...]

[...] In the absence of this, there is only an invitation to enter into negotiations' (Article 1114). However, according to Article 1115 of the said code, 'the offer can be withdrawn before the expiration of the deadline set by its author or, in the absence of this, at the end of a reasonable period' (Article 1115). 'The withdrawal of the offer in violation of this prohibition prevents the conclusion of the binding contract and imposes extra-contractual liability on its author in accordance with common law without obliging it to compensate for the loss of expected benefits from the contract' (Article 1116). [...]

[...] This may be considered as a wrongful behavior of the mandator the proof of an agreement between the seller and the buyer to sign a new sale agreement, even at a higher price, but with the intention of excluding the real estate agent in order to avoid paying him his commission. In these circumstances, the real estate agent may claim compensation, the amount of which will be at the discretion of the judges, by suing the seller (and the buyer) before the competent court. In the absence of such clauses and/or proof of a wrongful behavior of the mandate, the real estate agent will not be able to claim any damages, despite the seller's refusal to sign the sale agreement. [...]

[...] This sales mandate has been formalized by the seller within the real estate agency. Through its intermediary, a purchase offer is transmitted to the seller. However, the latter refuses to accept the offer, citing having found another potential buyer at a higher price. B. The legal qualification of the facts/the statement of the legal issue Can the seller retract after having signed with the real estate agent their mandate? Does the offer transmitted by the real estate agent to the buyer constitute a sale? [...]