What is the Hoguet Act and the professional license (T license)?
The Hoguet Act (Act No. 70-9 of 2 January 1970) regulates real estate professionals. It requires holding a professional license, including the T license (Transactions), issued by the president of the territorial Chamber of Commerce and Industry, to legally carry out real estate intermediation and management.
What the Hoguet Act requires
Act No. 70-9 of 2 January 1970, known as the Hoguet Act, and its implementing decree No. 72-678 of 20 July 1972 organize the exercise of intermediation and management activities relating to buildings and business assets. Any person who habitually acts as an intermediary in the purchase, sale or rental of others' property must comply with it.
The purpose of the text is to protect the public: securing the funds handled, guaranteeing the competence and integrity of intermediaries, and strictly regulating their remuneration and their mandates.
- Holding a professional license issued by the president of the territorial Chamber of Commerce and Industry (CCI).
- Justification of professional aptitude (diploma or experience) and absence of incapacity or prohibition from practicing.
- Subscription to a professional civil liability insurance.
- Financial guarantee when the professional receives funds on behalf of third parties.
The T license and the other mentions
The professional license bears one or more mentions depending on the activities carried out. The T license (Transactions on buildings and business assets mention) authorizes the activity of sales and intermediation. The G mention (Real estate management) covers property administration, and the S mention (Condominium manager) covers the management of condominiums.
The license is issued for a limited period and must be renewed periodically; its period of validity is set by the regulations in force. An agent who receives or holds client funds must have a sufficient financial guarantee; failing that, they may not receive any sum of money beyond their remuneration.
- Check the professional license number, which must appear on the agency's documents and mandate.
- Sales agents and salaried negotiators act under the license of the holder; they must hold an attestation (authorization) attached to that license.
- The amount of the financial guarantee, the period of validity of the license and the terms of its issuance may change: check the conditions in force with the CCI or on Service-Public.fr.
Frequently asked questions
How can I verify that an agency does hold the T license?
The professional license number must appear on the mandate, the listings and the agency's signage. You may ask to see the license and, in case of doubt, contact the Chamber of Commerce and Industry that issued it.
Can a private individual sell someone else's property for a commission without a license?
No. Acting habitually as an intermediary in others' real estate transactions without a professional license is illegal and criminally sanctioned by the Hoguet Act. The sale of one's own property by a private individual, however, is not concerned.
Does the Hoguet Act apply to online platforms?
Yes, as soon as they carry out an intermediation activity on behalf of third parties on a habitual basis. The mere posting of listings between private individuals may fall under a distinct framework: the assessment depends on the exact nature of the service provided.
Read next
- Légifrance - Loi n°70-9 du 2 janvier 1970 (loi Hoguet)
- Légifrance - Décret n°72-678 du 20 juillet 1972
- Service-Public.fr - Agent immobilier : carte professionnelle et conditions d'exercice
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