F2. Sole Mandate

  1. 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 think.

If you desire to be a successful real estate agent, then you need to be sure that you believe that a sole mandate is in the best interest of your seller. In the end, you will successfully negotiate what you yourself believe. When you have the argument in favour of a sole mandate settled within your own mind first then you will be able to convince your seller too.

A sole mandate, which is not exclusive, allows the seller to still market and sell it himself personally but excludes other agencies. However, there may then be a fee payable to the agent for their marketing and exposure of the property to the market.

  1. Sole and exclusive mandate

A sole and exclusive mandate is a legally binding document, which must be in writing. This mandate gives exclusive authority to one agent (the agent always meaning the agency) to market and sell the property within a specific time frame. During this period the seller may not appoint another agent, including himself in a private capacity, to market and sell the property. Once the time frame of the mandate has ended, and the seller does not wish to continue working with the agent, he can then approach another agent to market his property and the first agent has no further recourse or claims against him for commission.

One of the optional terms of an exclusive sole mandate is that the seller may authorise the agent to accept or reject an offer on their behalf. This is not an option in the Golden Homes standard sole and exclusive mandate; however, it can be added when you are negotiating your mandate and added in under special conditions.

The reason for a sole and exclusive mandate is to create efficient marketing and to maximise the benefit for all those involved in the property transaction. It is for this reason that the majority of financial institutions and estate agencies will recommend that the seller has one in place. Several benefits are created by having one in place, which will ensure more effective marketing of the property and an orderly conclusion of the sale. A sole agent would also be aware of any disclosures which would be pertinent to the sale.

Logistically, a sole mandate makes more sense in that the seller only has to deal with one agent and not several. This simplifies the process and less time is spent coordinating the seller’s schedule with the various agents.

It is also better from a safety perspective to only have one agent that has access to the property.

Advantages:

  • One agency representing your best interest and control over buyers visiting your home.
  • No commission disputes as this are negotiated upfront and settled at the time of listing.
  • Sole mandates receive the agency’s highest priority offering true value as time & marketing budget allocation is the highest.
  • Regular communication and updates between Seller and Agent.
  • A motivated agent will give high energy, focus, and take more responsibility to market and sell the property.
  • Comprehensive CMA’s are available to the Seller to establish a fair market value.
  • Viewing times regulated and managed to avoid unnecessary disruption to the household.

Disadvantages:

  • Concern that other agents may have buyers. However, a good agent will collaborate with other professionals that genuinely have an interested and qualified buyer.
  • The perception that more is better. The opposite is true: more dilutes the effort – everyone thinks ‘everyone else’ will do it.

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