A real estate mandate is an agreement between a Seller and the Estate Agent(s) regarding the marketing of a property, the agreement duration and obligations for both parties.
Real estate mandate an overview
Generally, they are three types of real estate mandate:
- Sole Mandate
- Dual Mandate (Multi Listing)
- Open Mandate
The mandate must be reduced in writing and must include the time the agent has to sell your property for example 6 months sole mandate with John from La Grace Properties.
Open Real Estate Mandate
With the open mandate, you can have any number of agents and with an open mandate even the owner can sell the property. With open mandates, you can have so many agents selling your property and the advantage is many potential clients will view your property increases the chances of your property selling fast. However, on the downside agents are reluctant to spend money on marketing campaigns when it is an open mandate as one agent can reap the rewards of their marketing campaign.
Dual Mandate
From the word duo, the dual mandate is when two estate agents have a right to sell a property.
Sole Mandate
A sole mandate is when a real estate agent has the exclusive right to sell your home within a specific time frame. As a seller, you shouldn’t just sign sole mandates, make sure an estate agent have a solid marketing plan for your property so that your house has a shorter turnaround time. You don’t want to sign a six months sole mandate to an agent without a marketing plan. Your property will spend months on the market and you cant get other agents to sell your property.
What happens when a sole mandate expires?
The owner can extend the term of the sole mandate or make it an open mandate for other estate agents to sell the same property.
What should you do?
You need to start with a sole mandate and make sure the agent has a comprehensive marketing plan before you commit and when the sole mandate expires and your property is still on the market then consider an open mandate.
