Despite the real estate crisis of recent years, the profession of real estate agent still seems to have the wind in its sails among auto-entrepreneurs. The profession has apparently not lost its luster. Like most adventurers who have tried their luck in the sector, you too want to  become a real estate agent and  set up on your own but you have no idea of ​​the steps to follow to create your agency? Follow the guide.

The prerequisites required before embarking on the profession

To be able to claim to become a real estate agent, certain preliminary legal conditions must imperatively be fulfilled: 

– the first of them concern professional qualification conditions: indeed, according to the regulations in force, no one can become a real estate agent if he does not justifies the possession of a bachelor’s degree (bac +3) or specialized diplomas of higher technician type BTS (bac +2) sanctioning studies focused either directly around real estate trades, or around legal matters, economic or commercial.

Failing that, the candidate will have to justify a certain number of years of professional experience acquired in the real estate sector: if the interested party has been employed by an agency, this condition will be confined to 10 years, s ‘he had the status of an executive during these activities, the period will be reduced to 4 years, and finally if he can justify possession of the baccalaureate diploma, the condition is limited to only 3 years.

– apart from this first condition, the job candidate must obviously also justify a criminal record free of any conviction for criminal offenses.

The steps to follow for the installation itself

Once these personal criteria of competence and good repute have been fulfilled, the aspiring to the profession will have to set about setting up a social structure to establish his activity.

Clearly, it will involve investing in the classic creation of a company: drafting of the articles of association, constituting general assembly of the partners, filing of the deeds of incorporation with the RCS (trade and companies register) of the Commercial Court within the jurisdiction, deposit of the share capital of the company thus created in the corporate bank account (which will have been previously opened) etc.

Note that with regard to the social structure itself, it is advisable to opt for the Limited Liability Company (SARL), this in particular because of the flexibility of this structure and its ease of setting up.

Once the social structure is in place, it will then be necessary to proceed with the specific procedures required by the profession, that is to say:

– Opening of an escrow account if the future agency plans to collect and hold funds on behalf of its customers;

– Establishment of a register of sales mandates in the event that the agent takes charge of transactions of this type;

– Subscription to a financial guarantee with an insurance company or a bank in order to guarantee any funds that the agent may have to hold on behalf of his clients. Note that the minimum amount of this guarantee is 110,000 euros in the event of collection of funds by the agent. Otherwise, it only amounts to 30,000 euros.

– Subscription to professional liability insurance (RCP);

– Finally, you will have to take the necessary steps to obtain your professional real estate agent card. Since July 1, 2015, this process has to be carried out no longer with the prefecture as was the case previously, but with the Chambers of Commerce and Industry.

The investments to be planned to start and then perpetuate the activity 

To properly start his activity, the aspiring real estate agent will have to budget, in addition to the installation costs previously reviewed, a certain number of other ancillary investments relating, for example, to:

– the acquisition of the workplace;

– the acquisition of furniture (computers, software, office tables and chairs, etc.)

– at the cost of the franchise, if the agent intends to work under the colors of an already known brand;

– the structuring of the agency’s website, etc.

Apart from these start-up costs, recurring fixed costs linked to the activity must also be provided for, such as:

-the rent;

– personnel costs;

– the fees of certain essential contributors (eg: the accountant);

– the cost of advertising for real estate advertisements;

– employee travel expenses, etc.