Real estate agent, indemnification, seller obligations, mandate, penal clause, HOGUET law, Civil Code, Supreme Court ruling, compensation claim
The High Court ruled on the conditions under which a real estate agent can claim indemnification from a seller who refuses to comply with their obligations.
[...] 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 However, according to Article 1115 of the said code, 'the offer can be withdrawn before the expiration of the period set by its author or, in the absence of this, at the end of a reasonable period' (Article 1115).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 the extra-contractual liability of its author in the conditions of common law without obliging it to compensate for the loss of the expected benefits of the contract' (Article 1116). [...]
[...] In any case, from a purely legal standpoint, the plenary assembly has definitively settled the debate and has been confirmed in this by the Ordinance of February which in no way called into question its jurisprudence PRACTICAL CASE I - ANALYSIS OF THE SITUATION A - THE FACTS The real estate agent is mandated by a seller, to find a buyer. This one accepts to acquire the property at the price and under all the conditions required by the aforementioned seller and appearing in the mandate. This sales mandate has been regularized by the seller within the real estate agency. [...]
[...] However, the latter refuses to accept the offer, citing having found another buyer at a higher price. B - THE JURIDICAL QUALIFICATION OF THE FACTS/THE STATEMENT OF THE JURIDICAL PROBLEM Can the seller retract after signing with the real estate agent his mandate? Does the offer transmitted by the real estate agent to the buyer constitute a sale? Can the real estate agent claim his remuneration in this case? Can the real estate agent claim compensation if the seller refuses his offer on the grounds that he received a higher offer from another buyer? [...]
[...] 2001-1135 that placed adulterine and legitimate children on an equal legal footing. Furthermore, adultery was only decriminalized in 1975. The Ordinance of February which reformed, among other things, the law of obligations, abolished the notion of cause, as well as that of good morals, notably in Article 1162 of the Civil Code, which now states that "the contract may not derogate from public policy either by its obligations or by its purpose, whether or not the latter was known to all parties" (Civil Code, 1162). [...]
[...] In the event of non-compliance with these rules, a fine of ?15,000 is provided for a real estate agent who is a natural person or ?75,000 for a professional who is a legal person. However, in accordance with Article L221-28 of the Consumer Code, if the real estate agent has already visited the property during the 14-day reflection period and with the owner's consent, received purchase proposals, the seller's renunciation will no longer be possible. Once the offer has been correctly drafted (firm price, marital status of the parties, date, and signature . [...]
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