Delegation of Real Estate Mandate: A Guide

The delegation of a property mandate is a mechanism whereby an estate agent holding a sales mandate entrusts all or part of the marketing of a property to another licensed professional. This arrangement, governed by the Hoguet Law, gives a property wider exposure while contractually organising fee-sharing between the two professionals.

Introduction

In the Parisian market, mandate delegation is a common practice among professionals. An agent holding an exclusive mandate on a property in the 3rd arrondissement may delegate the marketing to a colleague specialising in international clientele, or to a network with a larger buyer database. Delegation widens the property’s exposure without the seller needing to sign multiple mandates.

This guide explains how mandate delegation works, its conditions of validity, fee-sharing arrangements, and the essential differences with the search mandate used by property hunters.

Table of Contents

• What is a delegation of mandate in property sales?
• What conditions make a delegation valid?
• How are the fees shared?
• What is the difference between mandate delegation and a search mandate?
• What does a delegation change for the buyer?
• Frequently asked questions

What is a delegation of mandate in property sales?

It is the agreement by which an estate agent (the delegator) entrusts a colleague holding the carte T (the delegate) with the right to present their property to potential buyers and negotiate the sale, under the terms defined by a delegation agreement. The practice is not expressly defined in the Hoguet Law of 2 January 1970: case law and legal doctrine have progressively framed it.

The legal basis rests on the general law of mandate (articles 1984 and following of the French Civil Code) combined with the provisions of the Hoguet Law. The delegator must hold a valid sales mandate and have a delegation clause in that mandate, or obtain the seller’s agreement by amendment.

The delegate must themselves hold a valid professional card (carte T) and have a financial guarantee and professional liability insurance. The delegation cannot be entrusted to a private individual or to an unlicensed professional.

The delegation agreement is a written contract between the two professionals. It specifies the property concerned, the conditions of sale (price, timelines), the fee-sharing arrangements, the duration of the delegation, and the respective obligations of each party.

What conditions make a delegation valid?

Four cumulative conditions: a valid original sales mandate, the seller’s consent (a delegation clause or a signed amendment), a delegate holding a valid carte T with a financial guarantee and professional liability insurance, and a written delegation agreement. No delegation can take place without the seller’s knowledge.

To be legally valid, a mandate delegation must meet several cumulative conditions. The original sales mandate must be valid (registered in the mandate register, signed by the seller, not expired). The mandate must provide for the possibility of delegation, either through a specific clause or a subsequent amendment signed by the seller.

The seller’s consent is essential. An agent cannot delegate their mandate without the seller’s knowledge. This consent may be given generally (a standard clause in the mandate authorising delegation to any licensed professional) or specifically (naming the delegate in the mandate or by amendment).

The delegate must hold a valid professional card. The delegation agreement must be in writing and specify the fee-sharing terms. The delegate must respect the conditions of the original mandate, in particular the sale price and the terms of the transaction.

In the case of an exclusive mandate, delegation is the only way for the seller to benefit from the commercial efforts of several professionals while maintaining exclusivity with their primary agent. This is a significant advantage of the exclusive mandate over the simple mandate.

How are the fees shared?

Freely, under the delegation agreement: a 50/50 split is the most common, and the delegate’s share can reach 60 or 70% if they bring the buyer. The client pays only one commission, the one stipulated in the mandate: delegation creates no additional cost, and billing two commissions to the client is illegal.

Fees are shared between the delegator and the delegate according to the terms of the delegation agreement. The split is freely negotiated between the two professionals. The total fees charged to the client (seller or buyer, as stipulated in the mandate) do not change: the delegation creates no additional cost for the parties to the transaction.

In practice, a 50/50 split is the most common, but it varies according to each party’s contribution. If the delegate brings the buyer who concludes the sale, their share may reach 60 to 70%. If the delegator maintains an active role in negotiation and follow-up, the split is more balanced.

The delegate’s fees are paid by the delegator after the signing of the final deed and actual payment of fees by the client. The delegate invoices the delegator, not the end client. This arrangement ensures transparency for the client, who sees only one professional billing them.

It is important to note that charging two commissions (one from the delegator and one from the delegate, both billed to the client) is illegal. The client pays only one commission, as stipulated in the mandate.

What is the difference between mandate delegation and a search mandate?

The side they serve: mandate delegation places two professionals on the seller’s side, while the search mandate places the property hunter on the buyer’s side, and on that side only. One has an interest in selling at the highest possible price, the other in negotiating the lowest.

Mandate delegation and the search mandate are two distinct mechanisms that should not be confused, even though their use can lead to the same result (the conclusion of a sale).

Mandate delegation operates on the seller’s side. Both the delegating agent and the delegate agent act in the seller’s interest. The buyer is not a party to either mandate. The cost for the buyer does not change: they pay the agreed price, possibly increased by fees if these are borne by the buyer.

The search mandate operates on the buyer’s side. The property hunter in Paris acts exclusively in the interest of their buyer client. They are paid by the buyer, based on fees agreed in the search mandate. Their objective is to find the property at the best price and on the best terms for the buyer.

This distinction is fundamental because it determines the alignment of interests. An agent benefiting from a sales mandate delegation has an interest in selling at the highest possible price (maximising their commission). A property hunter mandated by the buyer has an interest in negotiating the lowest possible price. These are structurally opposing approaches.

What does a delegation change for the buyer?

Nothing on the price, nor on the fees, which remain those stipulated in the original mandate: mandate delegation is generally transparent for the Parisian buyer. They deal with the agent presenting the property (the delegate) and do not necessarily see the primary agent (the delegator).

However, the buyer should verify that the professional they are dealing with holds a valid professional card and is authorised to market the property (delegation agreement or certificate). In the event of a dispute, the absence of a formalised delegation can weaken the transaction.

The alternative for the buyer is to appoint a property hunter who will search for properties on their behalf, including properties marketed by agents under mandate (simple or exclusive, with or without delegation). The hunter then negotiates directly with the seller’s agent, in the interest of their buyer client. This is the approach we have practised at Home Select since 2011, with over 1,200 mandates completed.

To understand property hunter fees and the transparency of our compensation, visit our dedicated page.

Frequently asked questions

What is the difference between mandate delegation and a search mandate?

Mandate delegation is an agreement between two professionals: the agent mandated by the seller entrusts the marketing to a colleague. A search mandate is a contract between a buyer and a property hunter. In the first case, both professionals represent the seller. In the second, the hunter represents the buyer.

Must the seller give their consent for a mandate delegation?

Yes, mandate delegation requires the seller’s prior consent, generally provided for by a clause in the original mandate. If the mandate does not include a delegation provision, the agent must obtain a signed amendment from the seller before proceeding.

How are fees shared in a mandate delegation?

Fee-sharing is freely negotiated between the two professionals in the delegation agreement. In practice, a 50/50 split is common, but it may vary according to each party’s contribution. The total fees charged to the seller or buyer remain unchanged.

Can a property hunter benefit from a mandate delegation?

Yes, a property hunter holding a carte T can receive a delegation from a colleague. However, in that case, they would be acting on behalf of the seller, which creates a conflict of interest if they are also mandated by a buyer for the same property. This situation is ethically and legally problematic.

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Want to be represented by a professional who defends exclusively your interests as a buyer? Our property hunters operate under a search mandate, without any sales mandate delegation, to guarantee a total alignment of interests. Contact us to learn more.