No provision of the Act of 2
Droit Immobilier

No provision of the Act of 2

📅 Décision du 13 May 1998⚖️ Cour de cassation📖 2 min de lecture

No provision of the Act of 2 January 1970 and the Decree of 20 July 1972 prevents an estate agent from holding a mandate from a seller and a mandate from a buyer for the same transaction. Consequently, the right to commission exists for each mandate provided that the requirements prescribed by Articles 6 of the Act and 73 of the aforementioned Decree are satisfied.

Reference decision: cc • No. 96-17.374 • 1998-05-13 • View the decision →

This decision provides important insight into your property law. Here is what it changes for you.

The situation

No provision of the Act of 2 January 1970 and the Decree of 20 July 1972 prevents an estate agent from holding a mandate from a seller and a mandate from a buyer for the same transaction. Consequently, the right to commission exists for each mandate provided that the requirements prescribed by Articles 6 of the Act and 73 of the aforementioned Decree are satisfied.

What the law says

This decision confirms the fundamental principles of property law.

Key takeaways

  • Strictly observe the legal time limits for appeals
  • Keep all your supporting documents (titles, deeds, correspondence)
  • Anticipate: preventive advice always costs less than litigation

For an analysis of your situation: 30 min consultation for €45 with Maître Zakine.

📌 Does this apply to your situation? Maître Cécile Zakine, French real estate lawyer, practises throughout France.
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Informations juridiques

  • Numéro: 96-17.374
  • Juridiction: Cour de cassation
  • Date de décision: 13 mai 1998

Mots-clés

droit immobilierjurisprudenceimmobilier

Cas d'usage pratiques

1

Seller in Paris contests agent's dual commission

Sophie, a vendor in Paris, sells her flat near Montmartre for €500,000. The estate agent, who had a written mandate to sell, also held a separate mandate from the buyer and claims a 4% commission from both parties. Sophie refuses to pay, arguing the agent cannot represent both sides.

Application pratique:

The Cour de cassation decision of 13 May 1998 confirms that an estate agent can lawfully hold a mandate from both seller and buyer for the same transaction and earn commission from each. Sophie must first check if the agent fulfilled all legal formalities under the Hoguet Act (written mandates, clear disclosure of dual representation, commission rates). If these are satisfied, the agent is entitled to both commissions. Sophie should request copies of the mandates and, if in doubt, seek legal advice to verify compliance before making payment.

2

First-time buyer in Lyon pays agent twice

Thomas, a first-time buyer in Lyon, purchases a three-bedroom apartment for €300,000. He signs a buyer's mandate with the estate agent and pays a 3% fee. Later, he discovers the agent also received commission from the seller. Thomas feels misled and demands a refund of his payment.

Application pratique:

Under the principle set by the 1998 Cour de cassation ruling, an agent may act for both parties and claim dual commission if the mandates are valid. Thomas should examine the buyer's mandate he signed: it must be in writing, specify the fee, and ideally mention that the agent may also represent the seller. If the agent complied with Article 6 of the 1970 Act and Article 73 of the 1972 Decree, Thomas cannot recover his payment simply because the agent also earned from the seller. He should ask the agent for proof of proper disclosure and, if unsatisfied, consider mediation or legal advice.

3

Co-owners in Marseille challenge agent's impartiality

Two siblings co-own a house in Marseille worth €450,000. One sibling wants a quick sale and the agent finds a buyer who is an acquaintance of that sibling, prompting a sale at €400,000. The other co-owner objects, suspecting the agent favoured the buyer due to also having a buyer's mandate and receiving a 3% fee from both sides.

Application pratique:

The 1998 Cour de cassation ruling establishes that dual mandates are permissible, but the agent must still fulfil all legal obligations, including acting impartially. The dissatisfied co-owner should verify that the agent provided full written disclosure of the dual representation to all parties. If the agent failed to disclose or breached the duty of fairness, the commission may be challenged. Gather all correspondence and the mandates, and consult a property lawyer to assess whether the agent's conduct gives grounds to refuse payment or seek damages for any loss.

Maître Cécile Zakine

À propos de l'auteur

Maître Cécile Zakine — Avocate au Barreau des Alpes-Maritimes, Docteur en Droit. Chaque article de ce magazine est rédigé à partir de l'analyse d'une décision de jurisprudence réelle, commentée et mise en perspective par les équipes de Maître Zakine.

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