The terms of an estate agent mandate

One of the most important purposes of signing an estate agent mandate is to create a binding agreement between the estate agent and the seller that sets out the terms of the arrangement agreed upon to market and sell the property.

Verbal vs. written contracts for conveyancing

This contract helps eliminate any unnecessary confusion as the mandate clearly stipulates the terms agreed upfront by both seller and agent. It establishes the commitment between the agent and the seller and compels the agent to provide his or her best efforts to sell the property in question. Depending on the terms of the mandate, the agent will also most likely provide regular activity reports, keeping all parties informed of any new developments.

The information included in a mandate

Depending on the type of mandate agreed upon between the parties involved, a mandate would usually specify the following information:

  • The duration of the mandate;
  • The purchase price;
  • The specific terms and conditions of the mandate;
  • The instruction to render a specific service in respect of the particular property, and
  • An arrangement on the payment of the estate agents commission

The types of mandates

Sole mandate: A sole mandate is where one estate agent is given exclusive rights to market and sell the owner’s immovable property. This type of mandate protects the seller from a double commission claim and allows a clear and strategic plan to be put in place for the marketing and exposure of the property. A sole mandate also provides for greater security, privacy and protection for the property as access to the property is controlled by one agent, making arrange suitable viewing times simpler.

Joint mandate: In this case, the rights to selling a property are entrusted to more than one agent at different agencies. With more than one agent marketing the property, there is likely to be greater exposure of the property on the market, increasing the chances of finding a suitable buyer quicker. The commission paid on the sale of the property is split between the agents, regardless of who sells the property based on the agreed terms of the mandate, meaning that there is no extra cost to the seller. While there are notable benefits to this type of mandate, it is important to ensure that the efforts of all estate agents involved are well coordinated and that there is good communication to give the best chance of success.

Open Mandate: An open mandate allows the seller to work with multiple agents without restriction and offers the advantage of not being ‘locked in’ through a contract with specific agents. However, the risks of uncoordinated or duplicated efforts need to be managed carefully to ensure the greater marketing exposure is harnessed effectively.

Choosing the right kind of mandate for you will depend on the particular situation surrounding the property sale, but understanding what benefits and risks are associated with each can go a long way to making an informed decision.

Follow Snymans on Facebook for more legal information, tips and news about property.

6740

Recommended for you

Curatorship - what does it mean to be put under curatorship?
Contractual Matters

Documents required for transfer of property

7329

We know that paperwork isn’t everyone’s favourite thing, and while the property transfer process does require quite a few documents, it needn’t be overwhelming for buyers or sellers. That’s why we’ve put together this list of documents required for transfer of property.

Read More
My name has changed - what happens to my property’s title deed?
Contractual Matters

What should I know about bond registrations and cancellations?

6972

For the majority of property buyers, taking out a bond to help finance the purchase of their dream home is an essential step of the process. The good news for Snymans clients is that our experienced team can guide you through the process…

Read More
Minors and immovable property
Contractual Matters

Effective Cause – who earns estate agent commission?

13186

An estate agent can be an invaluable asset in helping you secure a quick and lucrative sale, but in cases where more than one agent might be marketing your property, how do you know who you owe commission to when a sale is concluded?

Read More
Minors and immovable property
Contractual Matters

Types of property transfers: the basics you need to know

13243

Whether it’s through a sale, inheritance or divorce settlement, there are a number of reasons for a property to be transferred from one owner to another. Each scenario is dealt with in slightly different ways, and our experienced team of conveyancing attorneys have put together a brief guide to help you understand the basics of each property transfer type.

Read More
My name has changed - what happens to my property’s title deed?
Contractual Matters

6 top tips from the Snymans Team

17892

For many, the start of 2020 means a new property search, or in some cases a sale. Because there is so much to think about when embarking on this exciting process, the team at Snymans Inc have put together some of their top tips to help you on your journey.

Read More

Need more Snymans content?

Sign up for our monthly newsletter.

The terms of an estate agent mandate

One of the most important purposes of signing an estate agent mandate is to create a binding agreement between the estate agent and the seller that sets out the terms of the arrangement agreed upon to market and sell the property.

Verbal vs. written contracts for conveyancing

This contract helps eliminate any unnecessary confusion as the mandate clearly stipulates the terms agreed upfront by both seller and agent. It establishes the commitment between the agent and the seller and compels the agent to provide his or her best efforts to sell the property in question. Depending on the terms of the mandate, the agent will also most likely provide regular activity reports, keeping all parties informed of any new developments.

The information included in a mandate

Depending on the type of mandate agreed upon between the parties involved, a mandate would usually specify the following information:

  • The duration of the mandate;
  • The purchase price;
  • The specific terms and conditions of the mandate;
  • The instruction to render a specific service in respect of the particular property, and
  • An arrangement on the payment of the estate agents commission

The types of mandates

Sole mandate: A sole mandate is where one estate agent is given exclusive rights to market and sell the owner’s immovable property. This type of mandate protects the seller from a double commission claim and allows a clear and strategic plan to be put in place for the marketing and exposure of the property. A sole mandate also provides for greater security, privacy and protection for the property as access to the property is controlled by one agent, making arrange suitable viewing times simpler.

Joint mandate: In this case, the rights to selling a property are entrusted to more than one agent at different agencies. With more than one agent marketing the property, there is likely to be greater exposure of the property on the market, increasing the chances of finding a suitable buyer quicker. The commission paid on the sale of the property is split between the agents, regardless of who sells the property based on the agreed terms of the mandate, meaning that there is no extra cost to the seller. While there are notable benefits to this type of mandate, it is important to ensure that the efforts of all estate agents involved are well coordinated and that there is good communication to give the best chance of success.

Open Mandate: An open mandate allows the seller to work with multiple agents without restriction and offers the advantage of not being ‘locked in’ through a contract with specific agents. However, the risks of uncoordinated or duplicated efforts need to be managed carefully to ensure the greater marketing exposure is harnessed effectively.

Choosing the right kind of mandate for you will depend on the particular situation surrounding the property sale, but understanding what benefits and risks are associated with each can go a long way to making an informed decision.

Follow Snymans on Facebook for more legal information, tips and news about property.

6740