Giving an Estate agent a Mandate
An estate agent is given a mandate to sell when he/she is asked by a seller to sell a particular property and has accepted that instruction
In law a mandate need not be in writing but can be given orally.
A seller is never forced to give an estate agent a sole mandate. The decision whether or not to give a sole or open mandate to an estate agent is an important one which can affect the way the property is marketed. Both sole and open mandates have advantages and disadvantages which should be carefully explained by the Estate agent.
Estate agents believe that a sole mandate will deliver a more dedicated marketing service in terms of time, money and effort spent in promoting a sale.
Giving a mandate to more that one agent
Unless a seller has given an estate agency firm a written sole mandate to sell his property, he or she may ask as many agents to market the property. The seller should inform every agent appointed by him that he has also asked other agents to sell the property
A seller who asks more than one agency to sell his property risks a claim for payment of more that one estate agent’s commission. This may happen when the seller sells his property through one of the agents appointed by him to a purchaser previously introduced to the property by another agent also appointed by the seller.
Important matters to be discussed with your Estate agent
• The selling price and deposit required: An agent can give a seller valuable help in setting a realistic, market related selling price of the property
• Agent’s commission: The amount of the estate agent’s commission and when it will become payable, must be agreed on. Estaste agents base their commission on a set percentage of the selling price of the property. No commission tariff is prescribed for estate agents.The amount is therefor fixed by negotiation between the seller and the agent.
• Defects: Defects in the property must be disclosed to the agent to avoid later disputes.
• Movable items to be included as part of the property: Movables included in the sale may include for example, built in wall units, TV Aerials, Swimming pool equipment.
• Occupation: The date on which the purchaser can move into the property must be agreed on.
• When the property may be viewed: It is important to agree on the times when the agent may bring possible buyers to view the property and whether appointments should be made
• Length of mandate: When, if at all, the mandate may be cancelled
• Necessary consents: For Example consent of husband / wife may have to be obtained before property can be sold
• Suspensive conditions: In most cases, a sale can only proceed once the purchaser obtain a bank loan to secure the purchase price of the purchaser must sell his own property first.
• Appointment of the conveyancer: The name of the conveyancer / attorney to attend to the transfer must be stated in the sale agreement. The seller has the right to appoint the conveyancer of his / her choice.