Supplier of real estate clients is a regulated activity, but what about the real estate service provider's commission? Can an individual engage in real estate? Under what conditions? We answer your questions in this article!
Client supplier for real estate business: what is it?
Before you receive a commission on a transaction, you should know that a business provider is an intermediary that brokers a commercial transaction between two or more parties. The role of a business intermediary is to connect people who can sign an agreement with each other and conclude a commercial transaction. This activity is not regulated; the intermediary can work in different sectors.
However, the real estate sector is an exception as real estate professions are regulated. The law imposes on them a framework of practice, a deontology, to carry out activities (for sale or rental, etc.) in a completely legal way.
A real estate customer service provider connects a potential customer with a salesperson (or even a real estate agency). The end of his mission is marked by the contact of the two parties mentioned above or the completion of the contract. The applicable law is different from that of a real estate agent or commercial agent.
How it works in practice
An individual can “become” a real estate business provider. But this is only possible in a specific case.
Indeed, Article 1 of the Hoge Law of January 2, 1970 states:
“The provisions of this law apply to natural or legal persons who routinely participate in or assist, even on an auxiliary basis, in transactions concerning the property of others and concerning:
1° Purchase, sale, search, exchange, rent or sublet, seasonal or not, bare or furnished, built or unbuilt buildings; »
Therefore, this article shows that only a real estate agent (professional card holder) or commercial agent can conduct business in the usual way. Apart from these professions, contributions to the business must be made strictly on an exceptional basis.
“Exclusively”: what does it mean? Simply put, this is the absence of relapses (even irregular ones). A business contribution cannot be made even in an “incidental” manner (for an individual who is not a real estate agent or commercial real estate agent). If the commercial contribution activity is repeated on a regular basis, the person must become a professional and his status must change.
Three status options:
- microbusiness
- individual business
- company (SAS or SASU)
Without a professional card, from the second business deposit, the activity becomes regular and the business provider falls into the qualification of a commercial agent/real estate agent.
Become a professional card owner
To have a professional card, you must register with the CCI (Chamber of Commerce and Industry) in your region. Completing loi Alur training, mandatory continuing education for real estate professionals, will allow you to renew your professional card every 3 years.
As a real estate professional (real estate agent or otherwise), you will be able to become a provider of real estate clients on a regular basis.
Real estate business provider commission
The business sponsor's fee is agreed upon between the two parties and included in the contract. This is often a percentage, but it can also be a fixed amount. Sometimes it happens that a network or agency offers gift certificates in exchange for contributions to the business.
According to Article 6 of the Hoge Law:
“I- Agreements concluded with the persons mentioned in Article 1 above and relating to the transactions mentioned in paragraphs 1 to 6 thereof must be in writing and specified in accordance with the provisions of the decree of the Council of State. :
- The conditions under which these persons are authorized to receive, pay or transfer sums of money, goods, property or securities in connection with the transaction in question;
- Conditions of liability;
- Conditions for determining remuneration, as well as an indication of the party who will be responsible for it. »
How much can you earn?
If a real estate agency's commission is 4% of the property price, it is considered that the business provider's commission ranges from 3 to 15% of this amount.
The agency commission can be higher, from 5 to 8%! This means greater rewards for the business provider.
For an individual, remuneration (commission) will be paid upon signing the order. For a professional, it will be paid after signing the authentic deed.
We remind you, of course, that for an individual this operation can only be carried out once and only once.
Example
For low agent commissions (4%):
If the property is sold for €600,000, the estate agent's commission will be €24,000. Of this €24,000, between 3 and 15 % will go to the business provider, that is: between 720 and 3,600 euros.
Source:
https://start-learning.fr/2020/12/07/commission-de-lapporteur-daffaires-en-immobilier/
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