What is a mandate? A Property Practitioner is said to have a mandate when they accept an instruction or authority from a client to render a particular estate agency service. Upon acceptance of the mandate, a legally binding contract is established between the Property Practitioner and their client. Essentially, a mandate is an exclusive contract between a seller and a Property Practitioner that...
F. Contracts
Sole Mandates This mandate gives only one estate agency the right to sell a property. This agency also becomes entitled to the commission – unless the homeowner sells the property himself. Many sellers tend to shy away from a sole mandate, fearing that they would lessen their opportunity for a fast and great deal by signing one. However, signing a sole mandate is actually more beneficial than they...
Open Mandate In the case of an open mandate, the seller has more than one Property Practitioner or agency working on finding a buyer for the property. Although open mandates allow the seller to work with other agencies and their Property Practitioners, it can cause complications, and there is always the possibility of a double commission claim. While it may seem to be the best option for the seller by...
A shared mandate, or dual mandate, is a mandate that the seller gives to two separate agents to market and sell his property. This mandate could be a sole mandate to the two agents, which still allows the seller the option to sell it himself, or it could be a sole and exclusive mandate which would prohibit the seller and other agents from selling the property. In a shared mandate the commission is either...
A competitive mandate is effectively an open mandate whereby: - All practitioners may work on the property—that is, it is not exclusive to one agency or network. - The seller typically has a net price, and practitioners add their commission on top of that to obtain a market price. - The agent has no obligation to the seller regarding marketing or advertising the property. - The seller may...
Private Sale As the name suggests, a private sale is a sale that excludes a Property Practitioner and is concluded privately between the seller and the purchaser. The seller is responsible for their own marketing and selling of the property, which often leaves them at a disadvantage as they do not have access to the marketing budget and no contractual commitment. Advantages: - No...
Multi-listing Mandate Advantages: - Maximum exposure to the market channelled through one agency. - Property Practitioners work together to the benefit of the seller. - An open hour exposes the property to the rest of the Property Practitioners in one simple step. - An open hour gives the seller multiple valuations to establish an unbiased fair market value of the property. - Possible...
Mandate management encompasses every aspect of the mandate from: The strategy implemented to get mandates. The signing up and legalities of a mandate. Obligations to the seller with regards to marketing during the mandate period. Advertising – profiles, web listings, property week listings, etc. The listing on a multi-listing network. Appointments and client feedback during the...
Before signing a mandate, it is important for you to determine who the seller is, as only the true owner of the property can be your seller. Natural Sellers: A natural entity is any person or persons operating in their personal capacity. The seller can be more than one person, for example, a husband and wife, or two single individuals. In each case, it becomes important for you, as the practitioner,...
In real estate, an erf is a legal term used to describe a piece of land registered in a deeds registry as an erf, lot, plot, or stand. Check carefully that the property description does not include “a portion of” or “a portion of or a portion of,” as this will result in an amendment to the bond if it has been recorded incorrectly. Every property has an erf description, which you will find on...