Loi Hoguet (Hoguet Act)

The loi Hoguet, French Act no. 70-9 of 2 January 1970, regulates the conditions for carrying on activities relating to certain transactions on buildings and businesses (fonds de commerce). Its implementing decree, Decree no. 72-678 of 20 July 1972, sets out the details. It applies to anyone who assists in such transactions on a regular basis: buying or selling a hotel, its property, its business, or non-tradable shares in the company that owns them.

What it requires

• A professional licence issued by the chamber of commerce (CCI), with the endorsement matching the activity, here “Transactions sur immeubles et fonds de commerce”.
• A financial guarantee and professional indemnity insurance.
• A written mandate, held before any work begins, limited in time and entered in the register of mandates.
• Regulated fees: they are only due once the transaction has actually been concluded, and the mandate states who pays them.
• Public information: a displayed fee schedule and mandatory details on documents (licence number, issuing CCI, financial guarantor).

In a transaction

For a hotel vendor, the loi Hoguet provides simple reference points: check the intermediary’s licence and guarantee, read the mandate before sharing any information, and know who pays the fees. For a buyer, the fee statement in a teaser or memorandum must match the mandate and the displayed fee schedule.

The loi Hoguet only governs intermediation. The rules on the sale itself (sale of a business, commercial lease, sale of shares) come from other legislation, to be handled with the notary and lawyer.

Not to be confused with

The so-called “loi Hamon” provisions, which require employees to be informed in advance when certain businesses are sold, and do not concern intermediaries.

Our fee schedule and regulatory information are published online.