The FNAIM is suing the PAP website. FNAIM stands for the French National Real Estate Federation. While PAP is a site for non-professional property exchanges.
The lawsuit highlights the importance of regulation in the French real estate market.
Selling without an agent
The PAP describes itself as “the first French real estate website to advertise renting and selling between individuals.” With a name that translates to ‘Individual to Individual,’ the site aims to bring sellers and buyers together without the services of a realtor.
While it’s tempting for buyers to avoid agent fees in this way, the reality is not that simple. Among other things, sellers have been known to inflate the property’s price, pocketing the equivalent of agency fees for themselves.
It’s a situation that can create countless problems for property buyers, without the backup and expertise of a licensed and insured agent on their side.
PAP’s controversial new service
PAP recently changed their offering and unveiled a new ‘coaching’ service on their website. It means users can now take a virtual tour of the properties online.
It’s these changes that the FNAIM takes issue with.
They argue that ‘coaching’ in this way is essentially simulating the role of an agent. In effect, this means practicing real estate without a license.
How FNAIM is suing the PAP
So what exactly are the details of the case?
In the court papers, the FNAIM argues that the new service promoted by PAP is unlawful under the provisions of the Hoguet law. This law governs real estate transactions in France.
Coryn Jolie, President of the PAP does not agree, saying “It’s a little crazy that it goes to trial.”
But indeed, the case is going to trial. By doing so, the FNAIM is making a bold statement to protect the interests of real estate agents in France. They also reserve the right to seek compensation for any economic loss.
This is the first case of its kind, and perhaps overdue in this current era of digital technology, which sites such as Airbnb are revolutionizing.
Real property experts
With FNAIM taking legal action against PAP, this case remains a hot topic for the French property market, and the outcome is still uncertain.
As soon as we have more details, we will bring you an update in this blog.
Meanwhile, for advice on any aspect of the Paris property market – advice from licensed and expert agents – don’t hesitate to get in contact with 56Paris today.