What is the difference between a Open and Exclusive Mandate?

When you decide to sell your property you must be aware of the type of mandate you are signing. Never sign a mandate which does not have a clause committing the estate agent to certain responsibilities.

Open Mandate

• This allows more that one estate agency to market and sell your property. The agency ultimately selling your property is entitled on the commission.
• Should you sell the property yourself, then the agency would not receive any commission
• Since more estate agents are involved in the marketing of your house, there will be more opportunities to sell your house.
• This represents a greater probability that you could get your asking price.
• However, the estate agent will be less motivated to spend the maximum time, effort or money to advertise a property which might be sold by another agency.

Exclusive Mandate

• This is the kind of mandate your estate agent would love. Should you sign an exclusive mandate with a specific agency, they are entitled to commission irrespective of who eventually sold the property.
• Even if you sell the property yourself the agency will still be entitled to their commission.
• Estate agents often adds a clause which states that if during the mandate period a buyer was introduced to your property, but only decided to buy after the mandate expired, the agency is still entitled to receive commission.
• For obvious reasons the estate agent will be much more motivated in his or her marketing efforts than would be the case with an open mandate.

For more information on debt consolidation, bonds and other related articles go to www.globalproperty.co.za

How To Escape from the Debt Rat Race

It is called “financial prison” because even though SA has people with good incomes, who are buying their own homes, they wind up in “financial prison” instead of “financial freedom” – mostly because of what bankers and credit card companies never tell them – and hope you never stop and think about. Just for example, the true interest rate on most home mortgages is about 200% – no, that’s not a misprint; yes 200%, because if you have a 30-year bond, you’ll pay for the home about three times…on a R750,000 bond, you’ll end up paying about R1,800,000 in interest!

That’s why ANYTHING you can do to cut the interest rate and/or pay it off faster MUST be taken advantage of.

Or for example, the kind of credit card debt most people take for granted can eat away your entire financial future like a horrible cancer. If you buy R8,000 worth of furniture with a typical credit card and make the minimum monthly payment, you’ll wind up paying about R40,000 for the furniture, 5 times what it’s worth. Do you think you can get ahead financially paying 5X’s what things are worth?

That’s why ANYTHING you can do to wipe out credit card debt MUST be considered.

If you have credit card debt you are not paying off in full every month, think about this: not only are you paying so much interest, you’re actually paying about five times what you buy is worth.

Imagine: Never shuffling through “the account pile” again, deciding who gets paid today and who doesn’t, not writing out a dozen cheques each month: financial simplification! And imagine having hundreds of free, extra money each month to invest, to get wealthy, so you can stop working if you like, retire early if you like, and maybe start a business. Did you profit from the recent property market boom? Do you have money making you money in mutual funds? Are you investing 15% of your income? If not, why not? – (because you’re spending too much of your income just paying bills!!!) Let’s change this for the better. Now

For more information on debt consolidation, bonds and other related articles go to www.globalproperty.co.za