The Requirements and Benefits of a Sole Mandate
Category Property
What is a sole mandate?
When homeowners decide to sell their property and have chosen an estate agent/agency to market their property, they may be asked to sign a sole mandate with the said estate agent/agency. A sole mandate is given to only one agency and no other. This is different from an open mandate, which means that the property goes to as many agencies as the seller wishes. It is important to note that a sole mandate is a legally binding agreement, therefore, the seller must understand and agree to all the terms and conditions set out in the agreement.
What are the requirements?
- A sole mandate must be a written agreement
- The sole mandate needs to include the seller’s signature
- The expiry date of the sole mandate must be recorded in the agreement
- The estate agent is responsible for supplying the seller with a copy of the sole mandate
- The estate agent is responsible for explaining the meaning and consequences of the sole mandate to the seller
- The estate agent is responsible for explaining the legal implications that would occur, should the seller sell the property without the assistance of the estate agent or through the intervention of another estate agent
What are the benefits of a sole mandate?
There are numerous benefits to affording a sole mandate to a single estate agency, which may include...
- The seller could get a better price for their property when employing a sole mandate agent, as all the buyers interested have to work through a single point of entry (the sole agent). This often leads to the buyers competing more fiercely on the same listing, which could end up leading to a better price for the seller as buyers compete to get the property.
- The agent will generally put a lot more energy, effort and money into the marketing of your property as they have a much larger chance of earning an income through a sole mandate.
- By employing a sole mandate agent, the seller can avoid double commission claims, thus saving him/her money and having to deal with uncomfortable situations.
- The seller will have more privacy and security, as the agent will control all buyers that come through the property.
- The sole agent will be committed to giving regular and accurate feedback on the marketing process.
- When too many agents are marketing the same property, it could lower the property value, as the seller may be deemed to be desperate by buyers.
- Only one “For Sale” sign will be placed outside your property, which means that potential buyers should contact only one agent or agency, and it looks less desperate than having multiple boards outside.
- If the online marketing of the home is done in the right way, having only one agency advertise the property will in fact lead to a higher ranking for longer on some of the main property portals in South Africa.
- The sole mandate agent has a whole team to back him/her and has access to a full buyer list, which means that a quick sale at the best price is more likely
Author: Meridian
