As a real estate professional, I've seen firsthand how crucial it is to understand the different types of mandates when selling your property. The type of mandate you grant to your agent can make all the difference between a successful sale and a property that simply sits on the market.
So, what's the difference between an open, sole, and dual mandate?
An Open Mandate allows you to appoint multiple estate agencies to market your property simultaneously. While this may seem like a good idea, the drawback is that agents may not give your property their full attention. There's also the risk of "double commission" if multiple agents claim to have introduced the buyer.
Imagine having multiple agents marketing your property, each with their own agenda and priorities. It can lead to confusion, miscommunication, and a lack of accountability. Moreover, agents may not be motivated to invest their time and resources into marketing your property, knowing that they may not be the ones to secure the sale.
A Dual/Joint Mandate involves appointing multiple agencies to market your property, with a pre-agreed commission structure that enables the agents to share the commission. While this type of mandate aims to increase the reach and reduce the risk of commission disputes, it may not necessarily mean that agents will give your property their full attention.
In a dual mandate scenario, agents may still be competing with each other to secure the sale, which can lead to a lack of cohesion and coordination in the marketing efforts. Furthermore, the shared commission structure may not provide enough incentive for agents to go the extra mile to market your property effectively.
A Sole Mandate, on the other hand, grants exclusive rights to a single agency to market and sell your property for a specified period. This means you cannot appoint other agents or sell the property privately during that time without potentially owing commission to the mandated agency.
In my experience, a sole mandate is the most effective way to sell your property. By granting exclusive rights to a single agency, you motivate the agent to dedicate their focused attention and comprehensive marketing efforts towards your property, aiming to achieve the best possible price within the shortest possible time.
A sole mandate provides a clear and direct line of communication between you and your agent, ensuring that you receive regular updates and feedback on the marketing efforts. Moreover, your agent is more likely to invest their time and resources into marketing your property, knowing that they have an exclusive opportunity to secure the sale.
A sole mandate is a legally binding contract governed by the Property Practitioners Act (PPA) of 2019 and the Consumer Protection Act (CPA) of 2008. To be valid and enforceable, the sole mandate must contain specific information, ensuring transparency and protecting both you and the property practitioner (estate agent).
When signing a sole mandate, it's essential to understand the terms and conditions. The mandate document must be in writing, signed by both you and the agent, and include clear legal details for all parties, the property, agreed asking price, commission terms, special conditions, and legalities, as well as an expiry date.
Experience shows that a sole mandate achieves the best results for clients. Typically, it enables the property to achieve a higher price and sell faster compared to market averages. As a seller, it's essential to be upfront with your agent about your needs and to consider what the minimum price is that you could accept.
While an open mandate may seem like a good option, I caution that it can lead to complications and may not necessarily mean that agents will give your property their full attention. In fact, I believe that an open mandate means nobody's responsibility.
In contrast, a sole mandate provides a more convenient and effective option. By signing a sole mandate, you'll only have to liaise and deal with one agent, reducing stress and chaos.
At PropertyTime, we believe it's far more effective to sign a sole mandate and allow one agent the space to secure the best sale. If you're looking for a trusted property professional to guide you through the selling process, contact your local PropertyTime agent today.
