A Mandate is an authority from a client to an estate agent, to render a particular estate agency service. It is a legal contract between the estate company and their client. This does not need to be in writing unless it is for a sole mandate, but, with that being said, it is always a good idea to record all mandates or exchanges between clients and agencies.
So, what are the different types of mandates?
Firstly, we have a ‘Sole Mandate’ – which is the best kind of mandate.
A sole mandate gives an estate agent the exclusive rights to list a property for the duration of the contract.
If another estate agent sells this property during the period of the sole mandate, the agent with the sole mandate can claim damages – which may equal the commission the agent could have made on the sale.
However, the owner can sell or let the property themselves during the period as long as the sole mandate doesn’t state otherwise.
Sole and Exclusive Mandate
Nobody, including yourself (the property owner), can sell or let this property other than the agent who has the sole and exclusive mandate on this listing.
This means that should anyone other than the mandated estate agent sell your property, you will still have to pay commission to that estate agent.
Many different property companies/agencies can have the mandate to market your property. There is no “Sole Mandate”.
There are benefits to signing a mandate with an estate agent:
- It gives the estate agent sufficient time to negotiate and obtain the most competitive price
- Less people go through your home therefore security risks are minimised. This also helps ensure that the people viewing the property are legit
- The estate agent is in a better position to market your home with a better budget and provide relevant feedback
- When selling property, there is a chance of commission being claimed twice. Mandates help you avoid this risk.
- The agent’s dedication to selling your property is more virtuous