There are 2 common types of mandates:
Exclusive (sole mandate)This agreement precludes the homeowner from selling the property in his or her private capacity, and it means that during the period of the exclusive mandate (3 months minimum to 2 years) anyone interested in buying the property must deal solely with the appointed agent.
Non-exclusiveSeveral estate agents from different estate agencies can be given instructions to sell the property.
The property is on the books of more than one Estate Agent, and each Agency has the right to sell the property, without being required to share the commission.
The benefits of signing an exclusive mandate
- It provides the estate agent with time to secure the highest price.
- It is safer to have a limited number of people through your home and the estate agent with your mandate will ensure to their best ability that the prospective buyers are "for real".
- It creates a moral commitment between the agent and the seller and motivates the agent to sell your property.
- The agent will most likely provide you with regular activity reports.
- The agent is more eager to spend his advertising budget on your home.
- You avoid the risk of double commission claims.
Can you terminate it?
There is an express law which provides that, after a period of 3 months from the date of signature of an exclusive mandate, either the seller or the agent can terminate the mandate by notifying the other party at least 15 days in advance by a registered letter.