What is the duration of a real estate mandate and how does renewal work?
A real estate mandate has a limited duration, which must be stated in the contract. The ALUR Act regulated tacit renewal: the mandate cannot extend without limit and must set out its duration and termination conditions. The actual duration and its cap appear in your mandate.
A duration that must be fixed
The implementing decree of the Hoguet Act requires that the mandate state a duration. A sale mandate therefore cannot be of indefinite duration: it specifies an end date and, where applicable, the terms of its renewal.
In practice, mandates are often concluded for an initial period of a few months. This initial duration is a negotiable clause: it is not fixed uniformly by law. Check the one written in your contract.
- The duration must appear explicitly in the mandate (mandatory mention of the Hoguet decree).
- The usual initial duration (often three months) is a matter of practice, not a legal rule imposing that figure.
- A mandate without a mention of duration is irregular with regard to the mandatory mentions.
Tacit renewal regulated by the ALUR Act
The ALUR Act (Act No. 2014-366 of 24 March 2014) strengthened the protection of the principal with regard to renewal. A mandate cannot extend indefinitely by tacit renewal without the client retaining a clear power of termination.
In concrete terms, when the mandate contains an exclusivity clause or a penalty clause, or when it provides for renewal, it must set out its conditions and duration and allow the principal to end it. It should also be recalled that, for exclusivity, Article 78 of the Hoguet decree requires a power of termination by registered letter with acknowledgment of receipt beyond three months. The aim is to prevent a consumer from remaining bound by an automatically renewed mandate without being aware of it.
- Tacit renewal is possible but must be regulated and terminable.
- The mandate must clearly inform the principal of the duration and the end conditions.
- The total duration, renewals included, cannot be unlimited.
Frequently asked questions
Does a three-month mandate renew automatically?
Only if a tacit renewal clause provides for it. Since the ALUR Act, this renewal must be regulated: the mandate sets out its termination conditions and cannot extend without limit. Check the renewal clause of your mandate.
What is the maximum legal duration of a mandate?
The law does not impose a single timeless figure, but requires a fixed duration and prohibits renewal without limit. For exclusivity, its firm effects are capped at three months by the Hoguet decree. Refer to the duration written in your mandate.
What happens if the mandate does not mention any duration?
The absence of a duration is an irregularity with regard to the mandatory mentions of the implementing decree of the Hoguet Act. Such a mandate may be contested. Always require that a clear end date appear in the contract before signing.
Read next
- Légifrance - Loi n°70-9 du 2 janvier 1970 (loi Hoguet)
- Légifrance - Décret n°72-678 du 20 juillet 1972 (mentions obligatoires du mandat et clause d'exclusivité)
- Légifrance - Loi n°2014-366 du 24 mars 2014 (loi ALUR)
- Service-Public.fr - Mandat de vente immobilière
A question about your plans?
Realistic price, order of the steps, agency fees on a sale. Book a video call with a BRIVEO adviser, free and with no commitment.
Talk to a property adviser