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Sole mandate or open mandate?
A sole mandate gives one estate agent the exclusive right to sell your home for an agreed period. An open mandate lets you appoint several agents at once, and usually only the agent who finds the buyer earns the commission. Neither is better in every case. The right choice depends on your home, your timeline and how much you trust the agent.
A mandate is the written agreement that authorises an agent to market and sell your property on your behalf. It sets out the price you want, how long the agent has, and the commission you will pay.
How a sole mandate works
With a sole mandate, you appoint one agent or agency for a fixed period. During that time nobody else may market the home. The agent knows that any effort they spend on photographs, advertising and viewings will be paid for if the home sells, so they have a reason to invest in it.
The catch is the commission clause. Many sole mandates say commission is payable if the home sells during the mandate period, even if you find the buyer yourself or a friend introduces them. Some also keep the agent’s rights alive for a time after the mandate ends, for buyers they introduced. The exact wording is what counts, so read it before you sign.
A sole mandate suits you when:
- you have found an agent you trust and who knows your area well;
- you want the home marketed properly, with a clear plan;
- you would rather deal with one person than manage several.
How an open mandate works
With an open mandate, you can give several agents permission to sell the home at the same time. The agent who brings the buyer who signs is the one who is paid. You can also sell it yourself without owing anyone commission, unless the agreement says otherwise.
That freedom has a cost. Agents may spend less on a home they might not be paid for, because another agent could close the sale first. Buyers also see the same home advertised by different agents, sometimes at different prices, which can make it look stale or confusing. If two agents introduce the same buyer, you may face a dispute about who earned the commission. Keep a record of who introduced which buyer and when.
Questions to ask before you sign either one
- How long does the mandate last? The period is whatever you agree. A shorter one gives you an easier exit if the agent does not deliver.
- What is the commission, and is VAT added? Commission is negotiated and there is no standard rate in law. Ask for the figure in writing.
- What marketing will the agent do? Ask for specifics, such as listing on property portals, a board, a show day and professional photographs.
- Can you cancel early, and on what terms? Some mandates allow cancellation with written notice, others do not.
- What happens if you sell privately during the period? This is where sole mandates can cost you.
- What happens after the mandate expires? Look for any clause that lets the agent claim commission on buyers they introduced earlier.
What the law expects of the agent
An estate agent must hold a valid Fidelity Fund Certificate. This is the registration that lets them work as a property practitioner. Under the Property Practitioners Act, an agent who works without one has no right to be paid for that work. Ask to see the certificate before you sign anything.
The Act also says an agent may not accept a mandate until you have given them a completed and signed mandatory disclosure form, where you declare the defects you know about. Fill it in honestly. If you hide a problem you know about, the voetstoots clause (the “as is” clause in most sale agreements) may not protect you later.
Which one should you choose?
If you want one committed agent and you are comfortable with the period, a sole mandate usually gets you more attention and better marketing. Keep the period short, and make the agent earn a renewal. If your home is unusual, or you want to test the market quickly, an open mandate gives you flexibility, but expect less effort from each agent.
Whichever you pick, do not sign on the day an agent first visits. Talk to at least two or three agents and compare what they offer, not just their commission.
What to do next
- Use the estate agent commission calculator to see what different rates will cost you.
- Read how to choose an estate agent before you shortlist.
- Browse agents and agencies in your area and ask each one for their mandate terms in writing.
This article is general information for South African readers, not legal, financial or tax advice. Rules and rates change, so check your own situation with an attorney, your bank or a tax practitioner. Our property calculators can help you work out the numbers.