Open vs sole mandates: what’s the difference?
The choice between a sole mandate and an open mandate can significantly impact the sale of your property.
If you’re selling your home, you might be wondering whether to choose a sole mandate or an open mandate. There are a few important differences that could affect the result of your sale, so it is important to choose wisely.
Regional Director and CEO of RE/MAX of Southern Africa, Adrian Goslett, says that there is a misconception that the more agents you have working on a sale, the quicker it will sell. “In fact, sellers often achieve far better results if they choose to work exclusively with one agent,” he notes.
To help explain the different options, Goslett says that a sole mandate is an agreement where you, the seller, work exclusively with one agency to sell your property. That means only your selected agent markets and negotiates offers on your behalf. With a sole mandate, your agent is fully committed to achieving the best result for you, putting all their effort into selling your property.
“Importantly, the mandate is a legally binding contract. This means that once it is signed by both parties, you have to honour it,” he notes.
If the need arises, and if you are within the 5-day cooling-off period, you can still cancel. Any time after that, you will need to provide 20 working days’ written notice to cancel. Only if the agent breaches contract terms or the Property Practitioners’ Code of Conduct, you can request immediate termination.
An open mandate, on the other hand, means multiple agents can list your property. This approach often leaves agents feeling less motivated to focus on the sale of your property and can sometimes lead to confusion or miscommunication between the various listing agents.
“Importantly, if there is any misunderstanding about which agent secured the sale, you run the risk of being held liable for double commission,” Goslett warns.
According to Goslett, with a sole mandate, you avoid the complications of dealing with multiple agents and get focused service tailored just for you. Your agent is motivated to secure the best price without competing against other agents for commission. “Quite simply, it gives you the best possible chance to sell smoothly and at full value,” he concludes.
When you’re ready to sell, consider your options carefully. And remember, sometimes, too many cooks can spoil the broth.
Writer: Kayla Ferguson
