Choosing the Right Sales Mandate

Choosing the Right Sales Mandate

Adapted with acknowledgement to Property24, who first highlighted this topic.

Selecting the correct sales mandate is one of the most important decisions a seller can make when aiming to achieve the best possible price. As Samuel Seeff, chairman of the Seeff Property Group, explains, a sole mandate not only affects how long a property takes to sell and the final price achieved, but also helps protect sellers from the risk of double commission.

Double commission disputes typically arise when more than one agent claims to be the “effective cause” of the sale - a situation that can significantly reduce the seller’s net proceeds. A written mandate, legally required under the Property Practitioners Act (PPA), formalises the agent’s responsibilities and sets out all key terms, including asking price, commission, mandate duration, and property particulars.

Below is an overview of the four main types of mandates:

Open Mandate

Multiple agents market the property simultaneously. Although this may seem to offer greater exposure, it often results in less commitment from agents and a higher risk of double commission disputes.

Dual Mandate

A dual mandate is when two separate agencies are each given their own exclusive mandate to market the same property.

• Each agency works independently.

• Both agencies follow the same mandate terms (price, duration, commission).

• The agent who is the effective cause of the sale earns the commission.

• Offers, marketing style, and negotiation approaches may differ.

A dual mandate offers broader exposure and healthy competition, often motivating both agents to work harder to secure a sale.

Joint Mandate

A joint mandate is when two agents or agencies work together under one shared mandate.

• Both agents collaborate as a unified team.

• Marketing efforts are coordinated and centrally managed.

• Commission is shared according to a pre-agreed structure.

While a joint mandate reduces competition between the agents and offers a streamlined approach, it may occasionally result in less urgency or effort, as both agents know they will share in the commission regardless of who secures the buyer.

Sole Mandate

One agent is exclusively appointed to manage the sale. This provides focused marketing, simplified communication, and total commitment from the agent. With commission secured upon a successful sale, the agent is incentivised to achieve the best possible price rather than rush to beat competing agents.

Samuel Seeff emphasises that choosing the right agent is just as important as selecting the mandate type:

“Sellers should not choose an agent based on promises of an unrealistically high price. The correct mandate, coupled with an agent who provides an accurate, market-related valuation, is the key to a successful outcome.”