Immovable Property
Article Provided by Leanne Jooste, B Law Inc. Attorneys
What is a property practitioner's mandate to sell a property?
A property practitioner's mandate is a document that is an agreement between the seller of an immovable property and a property practitioner which sets out the following terms:
- The seller has confirmed that the property practitioner is to market and sell the immovable property;
- The duration of the mandate;
- The purchase price;
- Any specific terms and conditions of the mandate; and
- An arrangement on the payment of the estate agent's commission
What are the different types of mandates?
Sole mandate:
When the seller of the immovable property gives one property practitioner the exclusive right to market and sell the immovable property. Avoids confusion between various property practitioners and allows a clear and strategic marketing plan to be put in place for the marketing of the immovable property to one specific property practitioner. The commission on the sale of the immovable property is paid to the sole property practitioner.
Joint mandate:
When the seller of the immovable property gives more than one property practitioner at different agencies the joint right to market and sell the immovable property. There will be greater exposure of the immovable property on the internet and social media with more than one property practitioner marketing the same immovable property, thereby increasing the chances of finding a suitable buyer quicker. The commission on the sale of the immovable property is split between the property practitioners, regardless of who sells the property based on the agreed terms of the mandate.
Open Mandate:
When the seller of the immovable property gives various property practitioners the right to market and sell the immovable property. The seller will work with multiple property practitioners without restriction and offers the advantage of not being bound to any specific property practitioner or any contract. The commission on the sale of the immovable property is paid to the property practitioner that successfully secures a purchaser and sells the immovable property.
De Lucia Group has been servicing the property industry for over 45 years. Contact us to ensure you get the best advice for all your property-related queries. Michael De Lucia - michaeldl@delucia.co.za
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The information contained herein is not intended to constitute advice and shall only be relied upon by you at your own risk. De Lucia Group does not guarantee the accuracy or completeness of any information posted in this newsletter or otherwise. Any information relied upon by you should be independently verified for accuracy. De Lucia Group reserves the right to change the content distributed or published without prior notice.
01 Aug 2023
Author De Lucia Group