Differences between an open, sole & dual mandate
Open, sole & dual mandate are avenues in property marketing. How different are they?
Partnering with a property practitioner is essential to improving 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 simultaneously, a sole mandate places the responsibility on a single agent, increasing focus and reducing complications.
Differentiating dynamics
Regional Director and CEO of RE/MAX of Southern Africa, Adrian Goslett, explains this.
“The truth is that it is often far more effective to sign a sole mandate and allow one property practitioner 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 property practitioner rather than several.”
It may seem like intuitive logic to assume that the more property practitioners you have marketing your properties, means more opportunities you have to sell them. However, that is not the case. “Simply put, it’s almost always quality over quantity,” says 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 property practitioner is required to explain the legal ramifications, and they must also 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 stated to be irrevocable, can be cancelled without notice by the person who conferred the mandate. That being said, most property practitioners use sole mandate forms that invariably stipulate that the sole mandate is irrevocable for a certain period,” Goslett cautions.
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 property practitioners’ 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 property practitioner 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 property practitioner was the effective cause of the sale.”
Expert recommendation
For this reason, Goslett recommends signing a sole mandate is always better. “Selling your home can be stressful, and quite frankly, having multiple property practitioners trying to sell your property may add to the chaos. At RE/MAX, we believe it’s far more effective to sign a sole mandate and allow one property practitioner the space to secure the best sale. Also, choosing one great property practitioner to deal with this important transaction has several benefits, especially if you find a property practitioner with whom you can form a trusting, working relationship. If you’d like to get a trusted property professional like this in your court today, contact your local RE/MAX office for support,” he concludes.
Writer: Kayla Ferguson
