What is the difference between a mandate, an open mandate, a sole mandate and an exclusive sole mandate?

Jan 4th, 2013 by Annalien in Advice to sellers, FAQs

What is a mandate?

When a seller instructs an agent to sell his property in return for payment in the form of commission and the agent accepts the instruction, a mandate has been formed.

What is an open mandate?

This means that any agent who received a mandate is entitled to market and sell the property. No agent can in these circumstances claim to have the sole right to sell that property.

What is a sole mandate?

With a sole mandate, which should always be in writing, nobody, except the agent and the seller himself are allowed to market and sell the property.

What is an exclusive sole mandate?

At common law the seller is always entitled to sell his/her property him/herself, even if a sole mandate has been granted. If, however, the seller’s right to sell has been excluded in the contract with the agent for the duration of the currency of the sole mandate, the seller would be in breach if he/she sells the property during the mandate period and will be liable for damages.

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