In real estate, a business introducer is someone who brings a property for sale to a real estate agency or an independent real estate agent.
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Real Estate Business Introducer
Before discussing the specifics of business brokerage in real estate, we must define what a business broker is.
A business broker is an intermediary between two or more parties. It allows these parties to jointly conduct a commercial transaction or establish a contract.
Business brokers can operate in various sectors.
Activity in the real estate sector has a unique characteristic, as it is regulated, unlike many other sectors.
1 – What is a deal in real estate?
Il This should not be confused with a mortgage deal, which involves bringing a client to a lending institution such as a bank or a mortgage broker.
2 – Real Estate Deal Commission
The commission for a real estate deal must be agreed upon in advance and included in the business agreement.
1 – What is the commission for a real estate transaction?
The Percentage-Based Commission
Generally, the transaction is compensated by a percentage of the revenue generated. This percentage may be capped.
What is the percentage for a real estate transaction?
The commission percentage varies depending on the tightness of the real estate market, meaning the difficulty real estate agencies have in finding properties for sale.
The commission for the transaction can therefore vary between 5% and 20% of the commission received by the agency.
The agency itself receives between 3% and 5% of the sale price of the property.
Example:
In the case of a property sold for €300,000 by an agency with a 4% commission and a sale that receives 10% of that amount.
Your commission would be:
€300,000 x 0.04 x 0.1 = €1,200
Fixed Commission
For a real estate transaction, the commission can be fixed. This is also called a flat fee.
This commission must be agreed upon by both parties and specified in the contract.
2 – When do you get paid in a real estate transaction?
when the two parties are put in contact
when the contract is signed by both parties
3 – What status is required to become a real estate business?
1 – Can an individual engage in real estate business?
What constitutes a non-professional business?
A non-professional is defined as an individual who is neither a commercial agent nor a real estate agent holding a professional license.
What constitutes an occasional business?
Il This refers to a business that operates on an exceptional, or non-recurring, basis.
If the activity becomes ongoing and occurs regularly, the individual must become a professional, and their status will need to be updated accordingly.
Business activity can be considered regular from the second investment onward. Of course, the time between these two contributions also plays a role in this potential classification.
To do this, the individual can choose from the following legal structures:
Sole proprietorship
Single-member limited liability company (EURL)
Limited liability company (SARL)
Simplified joint-stock company (SAS) and single-member simplified joint-stock company (SASU)
4 – Real Estate Business Regulations
Real estate business is a regulated activity. The Hoguet Law regulates the profession but does not specifically address the case of real estate transactions.
The tax authorities seem to tolerate occasional transactions by individuals without any legal status.
However, this is by no means a clearly defined legal framework.
More details are available on the government website.
4.2 – What qualifications are needed to become a real estate agent?
According to the Alur Law, professional real estate agents must undergo training.
4.2 – How do I obtain a professional real estate business agent license?
3.1 – Which real estate agency should I work with?
To obtain a professional real estate business agent license, you must contact the Chamber of Commerce and Industry (CCI) in your region.
This professional license will allow you to conduct real estate business on a regular basis.
It is also important to note that the Alur law requires real estate professionals to train regularly in order to have the right to practice in the field.
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