A Closer Look at the Search Warrant

What is a search warrant?

A search mandate is a contract that binds you as abuyer to a real estate agent whose mission is to find a property that meets your expectations. The real estate agent must hold a professional real estate license, which guarantees their professionalism. The search mandate is governed by the Hoguet and Alur laws.

How does it work?

The search mandate formalizes the relationship between you, the buyer, and a real estate professional. It sets forth the terms of the real estate transaction, the authority delegated to the agent, the terms of service, the agent’s compensation, and the resources to be utilized.

As a buyer, the search agreement requires you to pay the real estate hunter’s fee once the final sale has been completed. The real estate agent, for their part, is required to find a property that meets your criteria. They also have a duty to provide you with advice and information. The fee will be paid to them only if a deed of sale is signed before a notary; property viewings or the signing of a preliminary contract (compromis or promesse de vente) do not trigger payment of the fee.

A listing agreement includes searching for properties, scheduling viewings, negotiating the terms of the sale, making an offer, and finalizing the purchase.

There are two types of search warrants:

• The Exclusive Search Agreement: The search for your property may only be conducted by the real estate agent who signed the agreement. If you identify other properties during the term of the agreement, you must provide that information to the agent.
• The simple search mandate: You can search for a property on your own while the real estate agent conducts their search, and you can even engage other real estate professionals.

The Benefits

• You are only financially obligated if the real estate agent finds a property that suits you.
• This will save you time because the real estate agent will conduct the search for you and will only show you properties that meet your criteria.
• A real estate agent can show you properties that you wouldn't otherwise have access to, thanks to their network.
• You'll receive expert advice and guidance throughout your project.

What it must contain

• Identification of the purchaser: contact information (last name, first name, address, date of birth, marital status, nationality, etc.)
• Identification of the real estate agent: their name or the name of their agency, their real estate agent license number, their business address, their SIRET number, etc.
• Description of the desired property: This should be as detailed as possible. It should include: the type of property, the location, the ideal size, the number of rooms, etc. You can refine this description directly with the real estate agent.
• Price of the property being searched for
• Compensation terms: They may be expressed as a percentage of the purchase price or as a fixed commission.
• Term of the agreement: It is generally 3 months, but this is negotiable with the real estate agent.
• Measures Implemented: Since the passage of the ALUR Act, the search mandate must include a reference to the duty to provide information. The contract must specify the frequency of progress reports.
• Type of mandate: simple or exclusive
• Date of Signature
• Signatures of the parties

The Difference Between a Listing Agreement and a Sales Agreement

A property search agreement is a contract signed between a buyer and a real estate professional, whereas a listing agreement is a contract signed between a property owner and a real estate professional.