When it comes to selling your home, it’s important to know that I, as your agent, can’t sell your property without a mandate from you. This mandate isn’t just paperwork—it’s what allows me to legally market and present your home to potential buyers.
You may have heard about different types of mandates before, and I’ve talked about open vs. sole mandates in the past. For this conversation, let’s focus on what’s involved in a sole mandate and why it matters.
But first, a quick recap:
A sole mandate gives one agent or agency exclusive rights to sell your home, while an open mandate allows you to work with multiple agents at once. You might think more agents mean better chances of selling, but that’s not always true. A sole mandate creates a clear focus and urgency for me to give your property my all, making sure I sell it within the set timeframe and putting my full effort behind your sale.
What Exactly Is a Sole Mandate?
A sole mandate is more than just an agreement; it’s a promise between you and me that I’ll represent your property and do everything I can to sell it. Here’s what the contract needs to cover:
- Put it in writing: The mandate has to be documented.
- Signatures: You’ll need to sign it, and electronic signatures are allowed.
- Set an expiry date: This means we agree on how long I have exclusive rights to market your property.
- Option for an extension: We can include a clause to extend the mandate, but it can’t exceed 24 months total according to the Consumer Protection Act. Any extension also needs to be in writing.
- What happens after it ends: We should outline if I’ll continue marketing your property once the mandate expires.
- Commission details: This spells out the commission I’ll earn if I successfully sell your home.
- Keep a copy: Once we both sign, I’ll make sure you get a copy for your records.
Can You Cancel a Sole Mandate?
Sometimes, things don’t go as planned. If you need to cancel a sole mandate, here’s what you should know based on the Consumer Protection Act (Act 68 of 2008):
- Cooling-off period: If our mandate was signed through direct marketing, you have a 5-day period to change your mind. For example, if you sign on December 10th, you have until December 14th to cancel without any penalties.
- After the cooling-off period: If you need to cancel later on, you’ll need to give 20 working days’ notice in writing.
Immediate cancellation can only happen if I don’t meet my obligations, like not marketing your home as promised. You’d need to provide proof if this is the case, and if you’re unhappy with my work, you can file a complaint with the Property Practitioners Regulatory Authority (PPRA).
Penalties Go Both Ways
A sole mandate is legally binding, so both sides have to play by the rules. While you can report me if I don’t follow through on my end, I also have the right to enforce the terms if needed. For instance, if we haven’t agreed in writing to cancel the mandate and you decide to sell your home privately or through another agent, I could still claim my commission. This could lead to double commission, so it’s important to be careful.
Final Thoughts
Working with an agent you trust and signing a sole mandate can simplify the whole process. It gives me the motivation to focus solely on your property and make sure you get the best possible outcome. If you’re thinking about selling, reach out to me or your nearest RE/MAX office, and let’s talk about how we can make your selling experience as smooth and successful as possible.
FAQs
What laws apply to a sole mandate?
The Property Practitioners’ Code of Conduct outlines the rules for all property sale mandates in South Africa. The Property Practitioners Act 22 of 2019, which took effect in February 2022, also covers these requirements, specifically under clause 34.3 of the regulations and clause 3 of the code.
How do I get a mandate?
It’s simple—you contact a registered property practitioner (like me), and we sign an agreement (a sole mandate) that lets me market and sell your home.