Real Estate Professions in Monaco: What Law No. 1,252 Reform Entails

Legal status verified in September 2026. This article outlines the current state of Monegasque regulations and the main provisions set forth in Bill No. 271. As of this writing, this bill has not yet become law, and its content may still change during the legislative process.

The primary framework governing Monegasque real estate agents, property managers, and building managers is still based on Law No. 1,252 of July 12, 2002—which has been regularly amended since its adoption—as well as its implementing regulations. A major reform, aimed at substantially revising the conditions for practicing these professions, was adopted by the National Council in October 2025 and is currently making its way through the legislative process.

Understanding the distinction between what applies today and what is merely being proposed is essential, whether you work in the sector or are preparing to entrust a property management mandate.

What the Currently Applicable Law Provides

Law No. 1,252 of July 12, 2002, governs the conditions for conducting activities related to real estate and business assets. Any individual or legal entity that routinely engages in transactions involving the property of others must obtain an administrative authorization.

Two Distinct Authorizations

The law distinguishes between two authorizations. The first, titled “Transactions Involving Real Estate and Business Assets,” covers the purchase, sale, exchange, lease, and sublease of real estate, as well as business assets and certain transfers of corporate shares. The second, referred to as “Real Estate Management, Property Administration, and Condominium Management,” covers property management and condominium management. A single entity may hold both authorizations.

This distinction is not strictly formal: it determines what a professional is authorized to do.

Nor should it be confused with the standard industrial classification (SIC). An agency classified under NAF code 6831Y—real estate brokerage services—may hold one or the other authorization, or both. The NAF code describes the declared activity; the authorization determines what is permitted.

Professional Competence and Financial Guarantee

Sovereign Ordinance No. 15.700 of February 26, 2003, as amended by Sovereign Ordinance No. 8.860 of October 15, 2021, establishes the conditions for the application of the law. It makes authorization contingent upon demonstrating professional competence, providing a financial guarantee, and obtaining civil liability insurance.

The amount of the lump-sum, joint-and-several financial guarantee must be at least 150,000 euros, with separate amounts required for real estate transactions and for real estate management, property administration, and building management services. A professional holding both authorizations must therefore obtain two separate guarantees. For the first two years of practice, this minimum guarantee is reduced to 50,000 euros, subject to the conditions set forth in the law.

The law also establishes a conflict of interest: the practice of these activities is incompatible with any regulated profession, as well as with the professional practice of any activity whose primary purpose is to provide advice to third parties.

The Current Mandate System

This is the point most often misunderstood, and the one that the reform affects most directly.

Article 12 of Law No. 1,252 provides that,at the client’s request, the holder of the administrative authorization must draw up a mandate authorizing the holder to negotiate or enter into commitments. This mandate must be in writing and limited in duration.

A written document is therefore not a systematic requirement: it is triggered by the client’s request. Monegasque case law has confirmed that between a real estate agent and the individual who grants the mandate, a written contract is not mandatory unless expressly requested by the latter, and that a mandate may, under certain circumstances, be verbal.

The same article, however, establishes a rule independent of the mandate: no amount representing commissions, search fees, administrative fees, advertising costs, or brokerage fees is due to the license holder, nor may such amounts be accepted by the license holder, until the transaction has actually been concluded and recorded in a single document formalizing the parties’ commitment.

Finally, current law does not provide for a professional license or a continuing education requirement.

Why a Reform

The reasons put forward by the Prince’s Government can be summarized in four points: economic changes in the sector, client expectations, the increase in the number of market participants, and the strengthening of regulations—particularly regarding the fight against money laundering and terrorist financing, which places real estate professionals on the front lines of due diligence obligations.

The reform is part of a broader series of measures. Law No. 1,560 of July 2, 2024, established a regulatory framework for real estate dealers, with its implementing ordinance requiring, among other things, a specific financial guarantee and the obligation to provide certificates of electrical and energy compliance. The revision of Law No. 1,252 constitutes the next step in this process—and by far the most far-reaching one.

What Bill No. 271 Provides For

The following provisions are those of the text adopted by the National Council on October 2, 2025. They are not yet in effect and may still be subject to change.

Stronger Local Roots

The bill proposes to tighten the conditions for granting administrative authorization by introducing a requirement for actual residence in the Principality.

For individuals managing certain legal entities, the text requires ownership of at least 25% of the share capital to ensure genuine economic involvement. Specific rules are provided for when the director is itself a legal entity, as well as a residency requirement for beneficial owners in the cases covered by the text.

Provisions would also govern business premises, notably by restricting the conduct of business from a private residence, subject to certain exceptions.

A Professional License

The text establishes a professional license for several categories of individuals involved in the relevant activities. It would specify the holder’s identity, the business name of the establishment, the corporate name when the activity is carried out as a corporation, as well as the activities covered by the authorization.

The period of validity warrants clarification. The initial proposal provided for three years; the National Council Committee extended it to five years, and it is this duration that appears in the adopted consolidated text. Some communications still refer to the previous version, which illustrates the importance of referring to the adopted text rather than to summaries.

A Training Requirement

A professional training requirement would be established, to be completed at least once during each validity period of the license.

A special provision is in place for certain individuals performing duties comparable to those of a negotiator or sales agent who do not meet the required professional qualifications: in such cases, the training must be completed within one year, subject to the conditions set forth in the text.

The Written Mandate

The proposal aims to reform the current system by requiring a written, time-limited mandate, without making it contingent on the client’s request.

This formal requirement has a direct impact on compensation: it aims to ensure that only a duly authorized agent may receive a commission.

Remuneration of Intermediaries

Furthermore, the text stipulates that remuneration related to real estate transactions may only be paid to a professional holding an administrative license. The stated objective is to prevent the remuneration of unauthorized intermediaries.

Regulation of Advertising

The proposal imposes strict regulations on advertising related to real estate transactions covered by Law No. 1,252. The guiding principle is to restrict such advertising to authorized individuals.

This principle, however, includes an exception that should not be overlooked: advertising may be conducted by an unauthorized person if that person has been expressly authorized to do so by a licensed professional, and the name of the business operated by that professional is mentioned in the advertisement.

Penalties

The proposal strengthens the system of administrative and criminal penalties. In particular, it introduces new offenses related to practicing without authorization, exceeding the scope of authorization, certain compensation practices, agency agreements, and advertising.

Certain fines may be increased up to the amount of any profit made. In addition, the administrative authorization may be suspended or revoked.

Transitional Measures

The text includes transitional provisions. The Government specifies, in particular, that professionals already in practice would be granted a one-year period to comply with the new training requirements. The text also contains specific provisions applicable to individuals who are already authorized.

Status of the Procedure

In Monaco, a bill adopted by the National Council is forwarded to the Government, which had six months—that is, until April 6, 2026—to decide either to halt the procedure or to convert the text into a bill. The latter option was chosen. The bill must now be introduced within one year of the expiration of this six-month period, that is, no later than April 6, 2027.

What Remains Uncertain

Three points warrant consideration.

The bill has not yet been introduced. Its wording may differ from that of the adopted proposal, including on substantive points.

Several provisions refer to implementing regulations. Their content will determine the practical scope of the reform, particularly regarding the terms and conditions of the professional license and the content of training programs.

Finally, some public statements differ on details, such as the card’s validity period. For a bill currently under consideration, only the consolidated text is authoritative.

What a client can already do

Without waiting for a law to take effect, there are three common-sense steps you can take to prepare for the reform.

Verify the license and its scope. A license for “Real Estate and Business Transactions” does not cover property management activities, and vice versa. It is legitimate to ask which license the agent holds.

Request a written mandate. Section 12 of the current law gives the client the right to demand one, and the mandate must then be in writing and time-limited. This is the best protection against fee disputes, and the reform aims to make this the standard practice.

Verify to whom the commission is paid. The reform aims to ensure that compensation is paid only to the holder of the administrative authorization. This is already standard practice among reputable firms.

Identifying a Real Estate Professional in Monaco

An important clarification: a professional directory provides information; it does not certify. The competent authority for administrative licenses to practice is the Directorate of Economic Development, and a professional’s status must be verified with this authority.

What KaliDirectory offers is of a different nature: a map of Monaco’s real estate sector, with information that allows users to identify the listed companies and facilitates further research with the relevant authorities.

The sector is divided into major categories of activity: real estate agencies for sales and rentals, property managers and building managers for property management, real estate consulting and services, and developers. This breakdown partially overlaps—without entirely replacing—the distinction between the two administrative authorizations described above.

All listed organizations can be accessed throughthe directory of Monegasque businesses. For an approach organized by procedures rather than by profession, the guide *Settling in Monaco* addresses housing from the perspective of a new resident.

The rigorous standards for listing regulated professions are not a marketing ploy: they are a requirement that the reform—if it is implemented—will make even more stringent for all providers of real estate information.