Loi Alur

In application since April 1st 2017, the ALUR law has brought in some significant changes: agency fees and percentages must be indicated in advertisements when these fees are charged to the buyer.

A decree dated 10th January 2017 relating to consumer information provided by professionals during realty transactions reformed the obligations of realty agents.
 

Scale of fees:

• Content of scales of fees:

- The price charged for each service (these must be indicated tax-inclusive).

- If prices are fixed according to the value of the property or its rental value, it is required to indicate sums collected, and if applicable corresponding prices and all elements allowing calculation of the fees. If there is a “cumul des tranches”, this must be specified.

- Tariff bands are not accepted.

• Where they should be displayed:

- At the entrance to each establishment receiving customers and members of the public.
- On each advertising showcase located off-premises.
- On any online communication service reserved for professionals the scales must be easily accessible. Accessibility must also be effective on the realty agency’s website and all its applications: "In a maximum of two clicks” according to the DGCCRF.
- The scales must be easily visible in any advertising relating to sale, renting or subletting.
- This obligation also applies to all commercial events (fairs, shows ...)
 

Real estate ads:

• Sales agreement and seller's fees:

- Advertisements must mention the sales price of the property, as indicated on the sales agreement
- The advertisement must also indicate that fees are at the charge of the seller
- The GDCCRF recalls that it is prohibited to switch the fees from the seller to the buyer, and may be considered as deceptive marketing practice.

• Sales agreement and buyer's fees:

- The advertisement must mention the selling price as indicated on the sales agreement, plus the amount of fees at the charge of the purchaser.
- The advertisement must mention that fees are the charge of the purchaser

• Sales agreement and fees shared by buyer and seller:

- The advertisement must indicate the mention "fees shared between buyer and seller"