Property dealings -- with their promise of high value transactions -- are choice fodder for dubious dealers. Time and again we've seen trips to the South of France become trips to the cleaners when a few elementary precautions would have saved time, trouble and money. Spring and summer are when the shadier types come out of the woodwork so if the person you are trading with doesn't follow a few simple rules, that should be good enough reason to run the other way. Whether you're buying, selling or renting, here's a check list to protect your property, your vacation and your money.

1. Deal only with legally registered professionals. They trade honestly or they can lose their licence. Not only must a French sales or rental agent be registered as a business, he must also have a realtor's "Carte Professionelle" issued by the prefecture to the "gérant " (manager) of the sales or rental agency. If they don't have this, they're simply not legal and you're not protected by any professional statute.

2. Be sure you know who you're dealing with. It's not all that unusual for illicit "estate agents" to pretend they are registered or only to be registered in the UK or elsewhere (which does not give them the right to trade in France). It's not difficult to check that an agent is kosher and if you don't, you're just setting yourself up to be conned. Does their letter heading, terms of business and web site clearly indicate their registered address, SIRET number and "Carte Professionelle" numbers? Is the SIRET invented or is it listed with the name of the company on Infogreffe.fr or Societes.com?  Do they have a credible address or a proper office which you can actually visit? Are they easy to contact? Do their phone numbers answer during normal business hours?

3. Is the agent a member of a professional body such as FNAIM, SNPI, SEGAP or UNIT and does he have professional insurance cover? His obligatory "Garantie  Financiere" insurance will be all you have to lean on if the sale or rental turns sour.

4. Is the agent legally mandated to represent the property?  If he does not have a "mandat",  does he have a "Delegation de Mandate" from the holder of the mandate?  In France it is illegal for an agent to work without a "mandate" and in event of any problems, even if the agent has professional indemnity insurance, the insurance company is likely to refuse to pay.

5. Are contracts written in French? A reputable agent will also provide you with an English translation from a certified translator but the contract you actually sign must be in French.

6. In the case of rentals, is a "responsabilité civile" insurance policy included? If not, the tenant can be held responsible for fire, flood or other damage. Reputable agents can arrange for this insurance and often will insist on it. They will also have their own "responsabilité civile" insurance to cover them and the tenant if the owner has misrepresented the property. If you are renting out your property be sure to tell your insurer this or you will not be covered. We know of a local case where a rental tenant set fire to a property which was not covered because the owner’s insurer was not informed that the property was up for seasonal rental.

7. Does the agent heavily insist on cash either for payment of his commission or for part payment of the property price? Dealing in cash, while not necessarily illegal is highly restricted, and is something to be very wary of especially if the agent doesn't seem quite right in other areas. Reputable agents are unlikely to  accept to deal in cash but illicit agents often insist on large amounts of cash or on money transfers into accounts overseas.  The agent’s bank must be in France for the rental transaction to be licit.

8. If the original agent is not French registered, does he have a legally established French company representing him here? Legally, he must have.

9. These days most estate agents have web sites. Does their site detail their registered and/or trading address, phone number, French registry numbers, a few names of negotiators and collaborators? Does it look credible? Is there an email link that responds back to you (beware of anonymous email addresses like hotmail, yahoo or gmail. They could be legit... or not)? Check out who owns the domain name and who hosts the site. If you don't know how to do that just ask any internet geek... or your 12 year old.

In short, dealing with a professional licenced in France is your best guarantee that things will go well and offer you protection if they don't.

And what about direct transactions with the property owner without the intervention of a professional? These can sometimes be fine but they are nevertheless far riskier than dealing through a registered agent with an established office. A few warning signs to watch out for:

1. Is the property being proposed indeed in the name of the person who claims to own and represent it? Ask to see the "Titre de Proprieté" which states who the legal owner is.

2. Does this person have one property or is he offering several? "Oh, you wanted a sea view? Well I can offer you this other one closer to the beach or the one on the hill above." is a sign that you might not be  dealing with a single private owner but with an undeclared, uninsured and unlicenced "agent" with more than his personal property on his books. Caution!

3. Be even more wary of cash deals (or deals where payment must be made outside of France) than you would with a professional agent. The professional has something to lose (his licence) but when you're dealing in private the only one who stands to lose is you.

4. Be sure you know who the person is. Do you have his real address and phone number? Does he only want to give you his mobile number? How do you know it's not a temporary phone card? Ask for a land number instead. Does he answer the phone himself or is it someone else who always gets him to call you back? He might not be in the directory (not everyone is) but he's more traceable if he's listed at www.pagesblanches.fr.

5. If it's a high-value deal, ask for bank references and ask your own bank to check them out. The dealer's bank won't tell you anything but they will usually tell another bank.

6. If you can, note his car licence number and try to get a photo of the person you're dealing with. Some people are just camera shy but shady dealers can be pathologically photo-phobic... for a reason.

And if you do get taken to the cleaners by an illegal operator? Lodge a complaint with the local police and inform the DDCCRF (Fraud Squad). If the loss is considerable don't waste any time in taking on a lawyer. Inform the Realtor's Associations (FNAIM, SNPI) who can, at times, be pro-active in protecting the reputation of their sector from unregistered dealers.


Contacts:

SNPI (Syndicat national des Professionnels Immobiliers)
www.snpi.com

FNAIM
www.fnaim.com

D.D.C.C.R.F ( Consumer & Fraud protection)
04 97 03 33 00
 

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