Rental management mandate (mandat de gestion locative)
The rental management mandate (mandat de gestion locative) is the contract by which an owner (the principal) entrusts a real estate professional holding a professional card marked "Property Management" (the agent) with the mission of managing one or more properties on their behalf. Governed by the loi Hoguet of 2 January 1970 and articles 1984 et seq. of the Code civil (French civil code), this mandate must be in writing, dated, limited in time and specify the extent of the powers granted. The agent incurs civil and professional liability for any act performed within the limits of the mandate. This form is in English, but the document is generated in French, ready to sign and use in France.
Note: the questionnaire is in English; the generated document is in French.
The principal (owner)
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Frequently asked questions
Does the loi Hoguet require a written mandate?
Yes. Article 6 of the law of 2 January 1970 requires the management mandate to be drawn up in writing and in duplicate, specifying the acts for which the agent is empowered, the terms of their remuneration and its duration. Without a valid written mandate, the professional cannot legally manage the property.
What powers can be entrusted to the agent?
The principal can entrust the entire day-to-day management: finding tenants, signing leases, collecting rent and charges, issuing rent receipts (quittances), carrying out inventories of fixtures (etat des lieux), ordering and monitoring maintenance works up to a defined cap, initiating amicable recovery procedures. Exceptional acts (sale, creation of a mortgage) may only be delegated by an express clause.
How are the management fees set?
Fees are freely negotiated between the parties but must be expressly stated in the mandate. They are generally expressed as a percentage of the rent and charges actually collected (all taxes included). Since the ALUR law, a decree sets the maximum fees chargeable to the tenant for letting; day-to-day management fees remain the exclusive responsibility of the owner.
Can the mandate be terminated before its end date?
The mandate may be terminated by either party at the end date or, outside the end date, in the event of a serious breach not remedied within a reasonable time after formal notice. The principal may also end the mandate at any time with the notice provided, subject to compensating the agent for costs incurred and fees earned.
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