How do I terminate a real estate mandate (simple or exclusive)?
For an exclusive mandate, the Hoguet decree limits the effects of the exclusivity clause: beyond three months, it can survive only if the mandate allows its termination at any time by registered letter with acknowledgment of receipt, taking effect 15 days after receipt. Always check the clauses of your mandate.
The legal rule of exclusivity: Article 78 of the Hoguet decree
Contrary to a widespread belief, the period during which an exclusive mandate binds you is not left to the agency's sole discretion. Article 78 of Decree No. 72-678 of 20 July 1972 regulates the exclusivity clause (and the penalty clause): after a period of three months from its signing, such a clause can continue to produce its effects only if the mandate provides that it may be terminated at any time by either party, by registered letter with acknowledgment of receipt.
In concrete terms, after these three months, if the mandate does contain this power of termination, you may end it by sending a registered letter with acknowledgment of receipt; the termination takes effect at the end of the period provided for (often fifteen days after receipt). This protection is of a legal nature: the agency cannot impose on you a firm exclusivity without limit.
- Three-month period: beyond it, the exclusivity clause survives only if the mandate authorizes its termination at any time by registered letter with acknowledgment of receipt (Article 78 of the decree).
- Notification: the registered letter with acknowledgment of receipt is the safe way to date and prove the termination.
- The mandate may provide for a shorter irrevocability period, or none at all, but it cannot make the exclusivity indefinitely firm beyond three months.
Terminating a simple mandate
The simple mandate is generally more flexible. It too has a fixed term and termination conditions, but it does not involve exclusivity: you may market the property through other channels in parallel.
To end it, refer to the duration and termination clause of the mandate, then send your request by registered letter with acknowledgment of receipt to the agency, observing any notice period provided for.
- Reread the duration and termination clause before sending anything.
- Keep a copy of the letter and the acknowledgment of receipt.
- Beware of the so-called continuation or follow-on clause: it may provide for a commission if a buyer introduced by the agency purchases shortly after the end of the mandate; this type of clause is common and enforceable if clearly worded.
The special case of door-to-door solicitation
If the mandate was signed away from business premises (for example at your home during a door-to-door solicitation), you may benefit from a right of withdrawal provided for by the French Consumer Code (Code de la consommation). This period runs from the signing of the contract and assumes that the professional gave you the information and the withdrawal form required by law.
This right of withdrawal is distinct from termination: it does not apply to a mandate signed at the agency on your own initiative. Check whether your situation falls under a contract concluded away from business premises and the length of the period applicable at the time of signing.
- The right of withdrawal concerns only certain contracts concluded away from business premises (solicitation).
- It is governed by the French Consumer Code (Code de la consommation); the period and its terms may change, so check the framework in force.
- Outside this case, exiting the mandate is governed by its duration and termination clauses and, for exclusivity, by Article 78 of the Hoguet decree.
Frequently asked questions
Can I terminate an exclusive mandate before three months?
Only if your mandate provides for an early termination option. The Hoguet decree guarantees that after three months the exclusivity must be terminable by registered letter with acknowledgment of receipt, but it does not require free termination before that period. Read the duration and termination clause of your mandate.
Does an unterminated mandate continue indefinitely?
No. The mandate must have a fixed term, and tacit renewal has been regulated since the ALUR Act: it must remain terminable and the mandate must set out its end conditions. Check the total duration and the termination terms.
Can the agency claim a commission after termination?
Yes, if the mandate contains a continuation clause (or follow-on clause): a buyer introduced by the agency who purchases shortly after the end of the mandate may give rise to a commission. This clause is valid if it is clear and enforceable, and subject to the agency's ability to prove its involvement.
Read next
- Légifrance - Loi n°70-9 du 2 janvier 1970 (loi Hoguet)
- Légifrance - Décret n°72-678 du 20 juillet 1972, article 78 (clause d'exclusivité et faculté de dénonciation)
- Légifrance - Code de la consommation, dispositions relatives aux contrats conclus hors établissement (droit de rétractation)
- Service-Public.fr - Mandat de vente immobilière : durée et résiliation
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