Understanding the difference between an open, sole and dual mandate

Partnering with an estate agent is essential to improve the chances of securing full market value when selling any property. Another crucial aspect is deciding whether to sell with a sole or open mandate.

While an open mandate allows several real estate agencies to market a property at the same time, a sole mandate places the responsibility on a single agent, which increases focus and reduces complications.

“The truth is that it is often far more effective to sign a sole mandate and allow one agent the space to secure the best sale.

“A sole mandate is also a more convenient option because sellers will only have to liaise and deal with one agent rather than several,” explained the regional director and CEO of RE/MAX of Southern Africa, Adrian Goslett.

“It may seem like intuitive logic to assume that the more agents you have marketing your properties mean more opportunities to sell them.

“However, that is not the case. Simply put, it’s almost always quality over quantity,” said Goslett.

To help sellers understand what they are agreeing to, Goslett explains that the sole mandate is a written agreement with the seller’s signature included.

The estate agent is required to explain the legal ramifications and supply a copy of the agreement to the seller. In most cases, a sole mandate will expire after 90 days.

“A mandate, which is not irrevocable, can be cancelled without notice by the person who conferred the mandate. That being said, most agents use sole mandate forms that invariably stipulate that the sole mandate is irrevocable for a certain period,” Goslett cautions.

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“Sellers might also come across something called a dual mandate. This is also a sole mandate but signed with two or more agencies, rather than just one.

“Usually, in these scenarios, whomever of the two mandated agents sources the buyer will be entitled to the commission.

“Similarly, an open mandate means that your property is listed with more than one real estate agent from a variety of agencies, each of whom will be marketing and trying to sell your property.

“My only caution to sellers who choose this route is that they may run the risk of being held liable for double commission if there is any doubt about which agent was the effective cause of the sale.”