French Agencies in Monaco: What They Can and Cannot Do
Guidelines
A Separate and Strict Legal System
While we do not question the professionalism of our French colleagues, it is essential to remember one thing: Monaco is a sovereign state, with its own laws, its own regulatory authorities, and its own real estate rules.
What is legal in France may not be legal in Monaco — and misunderstanding this can have serious consequences.
The profession of real estate agent is regulated by Law No. 1.252 of 12 July 2002, reinforced by Sovereign Ordinance No. 8.860 of 15 October 2021.
To operate legally, agents must have:
- a recognised diploma or equivalent professional experience,
- an administrative licence granted by Monégasque authorities,
- a financial guarantee of at least €150,000 per activity (sales, management, syndicate), issued by a Monaco-based bank,
- professional liability insurance from a locally approved insurer.
These requirements are specific to Monaco and cannot be met by holding French authorisations.
A Regulated and Restricted Profession
In Monaco, only licensed and authorised agencies may carry out real estate intermediation, such as:
- organising property viewings,
- signing listing or search mandates,
- negotiating prices,
- communicating contractual or commercial information.
A French agency may not legally perform any of these tasks in Monaco without meeting the local requirements.
To do so, it must establish a local company, obtain a licence, and comply with Monégasque financial and legal obligations.
Legal Limits for Foreign Agencies Operating in Monaco
A French real estate agency cannot:
- conduct visits to properties in Monaco,
- sign mandates for properties located in Monaco,
- negotiate directly without a licensed local partner.
It can, however:
- enter into a cooperation agreement with a Monaco-based agency,
- clearly state in all communications that it acts through a licensed local partner.
Legal and Financial Risks of Non-Compliance
1. Invalid contracts
Any contract or mandate signed by an unauthorised agency may be:
- legally void,
- unenforceable in Monégasque courts,
- a potential obstacle to completing the sale or purchase.
2. No legal protection for the client
Clients using an unauthorised agency:
- have no protection under Monégasque law,
- cannot appeal to the Real Estate Chamber or local regulators in case of dispute.
3. Financial loss
Fees or deposits collected by unauthorised agencies may be:
- considered illegally received,
- non-refundable if no valid legal basis exists.
4. Miscommunication and regulatory errors
Foreign agencies may:
- overlook critical local rules,
- delay transactions through non-compliant procedures,
- provide incorrect advice without realising the consequences.
Liability Under French Law
A French agency acting illegally in Monaco may also face sanctions in France, particularly under the Hoguet Law, which governs the real estate profession.
Operating beyond its jurisdiction can result in disciplinary action or liability for professional misconduct.
How to Protect Your Transaction
- Always work with a licensed agency based in Monaco.
- If a French contact is involved, make sure the collaboration is official and transparent.
- Ask clear questions: Who conducts the visits? Who signs the mandate? Who issues the invoice?