Estate Agency Mandate - Open Mandate, Sole Mandate, Sole & Exclusive Mandate, Auction Mandate Facts, South Africa

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Open Mandate

Advantages

Disadvantages

Many people feel " why should I give a mandate to only one company, maybe the agency not chosen has the buyer? Yes as a seller you may feel advantages exist but in reallity their are no advantages to giving an open mandate....the truth is that in this industry, agents know agents and agents and they are always networking. Yes some agents refuse to do this, all I can sayis that this is a simle case of greed on the agents part. Remember sellers, when you give a mandate, the agent now works for you.

There are absolutely no advantages to an open mandate. Look at the column on the right "disadvantages. Maybe the only other advantage is that you are not bound by a contract, then again neither is the agency or agents.

over exposure. Many boards indicates poor property, something is wrong, over priced, Ulimately an open Mandate send the message that 1 agent cold not sell my property in this boyuant market, so now "maybe" many will.

Why would agents spend their money on a property they could loose to their oposition?

Mandates

Beware!!!

Open mandates with more than one agent or agency could lead to sellers paying double the commission, as 2 parties could introduce puchasers on the asking price, you the seller can only accept one of these offers and under the law the Estate Agent has still performed, which one to decline is risky business.

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Please consult your attorney or a CEA on the above matters. This website is merely my interpretation of the laws governing Real Estate Sales. Acting on the information contained in this site is at your sole risk and discression. Under no circumstances or events shall any perties involved in this website be liablle for any damages however so arising.