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

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