Terminating a simple mandate might seem trivial: no exclusivity, complete freedom for the seller. It is precisely this apparent simplicity that is deceptive. Some agents demand up to 3% of the sale price for “incurred fees.” Others invoke a post-termination effect clause lasting six months in order to claim their commission. Some refuse to return the property reports, when they are not blocking the marketing… Behind every termination lie contractual clauses that can turn a routine action into an expensive dispute. Informed sellers who understand these mechanisms avoid these pitfalls and retain control over their sale.
The legal nature of the simple mandate and its implications
The simple mandate, governed by Articles 1984 and following of the Civil Code, grants the real estate agent the power to seek a buyer without exclusivity. You probably already know this. Behind this apparent freedom for the seller, however, lie a few contractual subtleties.
Unlike the exclusive sales mandate, the simple mandate allows the seller to engage multiple intermediaries. The seller also retains the ability to conclude a direct sale. This flexibility explains why many high-end transactions favor this arrangement—especially in tight markets, where speed of execution is paramount.
The maximum legal duration remains set at three months, renewable by tacit agreement. A seller in a hurry can thus test several commercial approaches simultaneously.
Practical illustration: imagine a 250 m² apartment in the 16th arrondissement, valued at €3.8 million following a professional real estate appraisal. The owner signs three simple mandates simultaneously with different agencies, each leveraging its network:
- Agency A targets expatriates through its London contacts,
- Agency B contacts its institutional investors,
- Agency C, for its part, focuses more on a French wealth-oriented clientele.
This multi-channel strategy illustrates the main advantage of the simple sales mandate: diversifying commercial approaches without an exclusive commitment.
Key takeaway: a simple mandate does not mean there is no commitment. Special clauses—particularly regarding termination conditions and possible penalties—deserve to be read carefully before signing. Unlike the retraction period for a real estate mandate, which applies in certain specific cases, terminating a simple mandate follows its own rules.
How to terminate a simple mandate? Answer according to the Hoguet Law
As you surely know, it is the Hoguet Law of January 2, 1970 that governs the signing and termination of real estate mandates. For the simple mandate, there are three scenarios.
Termination at expiration is the natural way to end the commitment. The seller must notify their decision not to renew the mandate 15 days before its term. This notification must be in writing, sent by registered mail with acknowledgment of receipt. The agent then has 8 days to return the complete property file.
Unilateral early termination is another possible mode. It remains available at any time, unless a contrary clause exists. The seller then invokes Article 2004 of the Civil Code, which provides that a mandate is revocable. Here, caution is required: this freedom does not exempt one from potential penalties, especially if the agent proves prejudice!
Termination for cause is the last scenario. It occurs when the agent fails to fulfill their obligations: no activity report, failure to advertise, non-compliance with the agreed sale price, among other breaches. The seller must then precisely identify the failures to guard against any legal recourse.
Practical illustration: a villa in Saint-Tropez valued at €4.2 million is put under a simple mandate in April. Six weeks pass, and no visits have been organized. The seller discovers that the agent published no advertisement—neither on real estate portals nor in the specialized press!
This is clearly far from the usual practices for properties of this caliber, which generate real estate ads in Paris and the regions quickly. Here, the total lack of performance of the promised services constitutes a clear breach. The termination of the mandate is imposed without penalty, the agent having failed to fulfill the minimum contractual marketing obligations.
What pitfalls to avoid and which clauses are sensitive?
Some contractual clauses indeed turn termination into an obstacle course. From experience, every good professional scrutinizes three critical points.
The indemnification clause is among the most litigious. Many mandates provide for the payment of 1 to 3 % of the sale price in case of early termination. This clause is obviously legal, provided it is explicit and proportionate. But it must be negotiated in advance. A savvy seller will cap it to the fees actually incurred and justified.
The irrevocable mandate clause temporarily neutralizes this right of termination. The irrevocable period is limited to three months. The purpose of this clause is to protect the agent’s commercial investment. But to be valid, it must be accompanied by tangible consideration: a credible advertising campaign, professional home staging, production of marketing materials, for example.
The post-termination effect clause, as its name indicates, extends the agent’s rights beyond termination. Indeed, a buyer presented during the mandate may come forward a few months after the period ends. In this case, the agent normally retains their commission. However, case law limits this protection to six months and, above all, requires a nominative list of prospects provided at termination.
To conclude, here are the vigilance points as a seller:
- Always demand the list of presented buyers
- Keep all evidence of communication with the agent
- Photograph any advertising materials produced
- Document precisely the visits carried out
What is the proper procedure to terminate a simple mandate?
Step 1: Preliminary audit (by J-15 at the latest). Thoroughly analyze the initial mandate. Identify the termination clauses, possible penalties, reciprocal obligations. Check the expiration date and renewal conditions.
Step 2: Formal notification (by J-8 at the latest). Draft a detailed letter mentioning: the mandate reference, the effective termination date, any reasons, and the request for the return of documents. Here, it is best to send a registered letter with acknowledgment of receipt.
Step 3: Commercial status review (by J-5 at the latest). Demand the detailed activity report: number of visits, buyer profiles, advertising channels used, market feedback, among other items. This document will be useful in case of a subsequent dispute.
Step 4: Administrative closure (day J). Retrieve the entire file: technical diagnostics, plans, professional photographs. The property keys, if applicable. Draw up a signed receipt listing the returned elements.
Example of a dispute avoided by procedural rigor: consider a château in Dordogne priced at €2.8 million under a simple mandate. After four months of inactivity, the selling owner finally terminates the mandate. The agent demands €28,000 in compensation (1 % of the price), claiming “exceptional advertising costs” allegedly related to this sale.
The seller, having followed our procedure, produces their request for supporting documents dated J-5. The agent can only justify two basic listings costing €450. This example demonstrates the importance of documenting each step. Without this prior request, the seller would have had great difficulty contesting the amount claimed!
Conclusion
It is true that one must also plan ahead at the time of signing the mandate. Always negotiate the termination clauses before signing. A good mandate provides intermediate deadlines to evaluate the agent’s performance. Prefer a short mandate (three months) with express renewal rather than a tacit one.
Then, prepare the next steps before terminating your mandate. Identify a new commercial strategy in advance. Termination is not an end, but rather a step toward more effective marketing.
Whether it means switching to an exclusive mandate, opting for a semi-exclusive mandate for more protection, or changing intermediaries, commercial continuity is key. Feel free to consult our Real Estate Search Mandate Guide to explore all your available contractual options.
