The **Court of Cassation**, France's highest court for civil and criminal matters, issued a ruling on May 7, 2026, clarifying when buyers might be required to pay real estate agencies for lost commissions. The case centered on a couple who obtained a non-exclusive sales mandate from a real estate agent for a villa valued at 2,990,000 euros. The mandate included a 6% commission, usually paid by the buyers. The couple visited the villa through the agency, and weeks later signed a direct sales agreement with the sellers. This agreement included a clause stating the buyers would handle any claims from real estate agencies. The sale was completed on August 29, 2018, for 2,500,000 euros, without any payment to the agent. The agency then filed a lawsuit, claiming the buyers had fraudulently prevented them from receiving their commission, which amounted to 150,000 euros.
Lower courts, including the Tribunal of Grasse and the Court of Appeal of Aix-en-Provence, ruled in favor of the agency, ordering the buyers to compensate them. The buyers appealed to the **Court of Cassation**, arguing they were not bound by a contract with the agency and that their freedom to choose how to make a purchase should protect them. However, the **Court of Cassation** rejected the appeal, stating that the buyers had become complicit in the sellers' breach of the original mandate by participating in actions meant to deprive the agency of its commission. The court noted that the buyers were aware of the commission and the potential for legal action, and that the sales agreement was deliberately hidden from the agency.
The **Court of Cassation** also pointed out that the notarized sales document did not include the clause shifting responsibility to the buyers, suggesting an effort to conceal the agency's initial involvement. The ruling emphasized that while buyers have the right to negotiate directly with sellers, they must ensure their actions do not interfere with the payment of the commission that is normally due to the agency. The court advised real estate agencies to document all visits and negotiations to protect themselves from such situations. This decision aims to clarify the boundaries of contractual obligations and responsibilities in real estate transactions.
French Court Clarifies Buyer Liability in Real Estate Commission Disputes
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