Apparent Mandate Cannot Override

Reference decision: cc • No. 05-15.774 • 31 January 2008 • Consult the decision →

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

The situation

The apparent mandate cannot defeat the mandatory rules laid down by Articles 1 and 6 of Law No. 70-9 of 2 January 1970 and Article 72 of the Decree of 20 July 1972, which provide, for the first two of these texts, that agreements concluded with natural or legal persons who habitually engage in or assist with transactions relating to the property of others, in particular the sale of buildings, must be in writing, and, for the third, that the holder of the professional card "transactions on buildings and businesses" must hold a written mandate specifying its purpose and which, when it includes authorisation to commit to a specific transaction, expressly mentions that transaction.

What the law says

This decision confirms the fundamental principles of property law.

Key points

Scrupulously respect the statutory time limits for appeals
Keep all your supporting documents (title deeds, deeds, correspondence)
Plan ahead: preventive advice always costs less than litigation

For an analysis of your situation: 30-minute consultation at €45 with Maître Zakine.

📌 Does this apply to your situation? Maître Cécile Zakine, French real estate lawyer, practises throughout France.
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Cas d'usage pratiques

Seller's verbal agreement with estate agent backfires

A homeowner in Lyon verbally asks a local estate agency to find a buyer for their flat valued at €300,000. After three months of viewings, the agency presents a ready and willing buyer, but the seller decides to sell privately to a neighbour to avoid paying agency fees. The agency sues for its commission, arguing an apparent mandate existed.

Application pratique:

The Cour de cassation confirmed that a written mandate is mandatory for estate agents under the Hoguet Law. Without one, the agency cannot enforce any claim for fees, even if they introduced a buyer. The seller should formally refuse to pay, citing the requirement for a written mandate. Keep all correspondence showing no written mandate was ever signed; the agency's claim will be dismissed by a French court.

First-time buyer duped by unauthorised agent

In Bordeaux, a young couple looking to buy their first apartment (€180,000) is approached by an estate agent who shows them several properties. They sign a 'bon de visite' (inspection form) but are never told the agent lacks a written mandate from the sellers. After they find a property directly, the agent demands a €10,000 finder's fee from them, claiming an apparent mandate.

Application pratique:

An estate agent must hold a written mandate from the seller to claim any fee. The agent's demand is unenforceable because no written mandate exists. The couple should refuse payment, pointing out the legal obligation under the Hoguet Law. They can safely proceed with the purchase directly from the seller. Always ask to see the agent's professional card and signed mandate before signing anything.

Co-owner's unauthorised sale attempt fails

In Nice, one sibling out of three inheriting a villa worth €600,000 verbally instructs an estate agent to market the property, without consulting the other co-owners. The agent quickly finds a buyer ready to sign a preliminary contract, but the other co-owners object and refuse to sell. The agent demands full commission, relying on the apparent mandate of the single co-owner.

Application pratique:

The decision confirms that an apparent mandate cannot override the mandatory written form. The agent cannot claim fees because there is no written mandate, and a single co-owner cannot bind the others without authority. The non-consenting co-owners should formally reject any sale attempt and notify the agent of the lack of mandate. To prevent this, always ensure all co-owners sign a written mandate before engaging an estate agent.

Apparent Mandate Cannot Override

The situation

What the law says

Key points

Informations juridiques

Source

Mots-clés

Cas d'usage pratiques

Seller's verbal agreement with estate agent backfires

First-time buyer duped by unauthorised agent

Co-owner's unauthorised sale attempt fails

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Maître Zakine, Doctor of Law