What is a Sole Mandate and How Does It Work?

A sole mandate is a legally binding agreement between a seller and a real estate agent that gives the agent the exclusive right to market and sell the seller’s property for a specified period of time, typically 90 days. Simply put, it is a contract between you and an agent or broker that states they are the only people who will be allowed to market and sell your property. It outlines their scope of services, fees and commission, as well as roles and rights under the agreement. Learn more about this process and the paperwork involved here.

Define a Sole Mandate.

A Sole Mandate is a contract that grants an agent or broker exclusive rights to market and sell your property, while prohibiting any other party from doing the same. The agreement specifies the fee structure, services provided by the agent or broker, and their roles and rights under the mandate. This type of agreement should be in writing and signed by both parties for it to be legally binding.

Understand the Role of an Agent or Broker in a Transaction.

Agents and brokers play an important role in real estate transactions, providing valuable advice, marketing resources, and access to other professionals who can assist in the sale. When working with a Sole Mandate agreement, it is highly recommended that you interview the agent or broker to ensure they are capable of meeting your needs and providing an efficient service. Additionally, take into account their knowledge of the local property market and how they plan to successfully market your property.

Learn the Rights and Responsibilities that Come with a Sole Mandate.

When setting up a Sole Mandate agreement with an agent or broker, make sure to carefully review the rights and responsibilities you both have during the transaction process. The responsibilities of the agent generally include marketing your property and negotiating with potential buyers. The rights of the agent usually cover exclusive access to your property listing, as well as setting their own requirements for potential buyers as necessary. Your responsibility is to ensure that all paperwork is in order and any contract terms are strictly adhered to in accordance with local, state, or federal laws.

Review the Types of Paperwork Involved in this Process.

When engaging in a Sole Mandate agreement, it is important to understand the different types of paperwork that you and your agent will need to complete. As the seller, you may be asked to sign documents such as a power of attorney, deed of sale, or a FICA compliance form. It’s also crucial that you thoroughly review all contract terms associated with the transaction. On the agent’ side, they must provide documentation outlining their roles, responsibilities and rights to act on behalf of the seller during the transaction process. Make sure to ask your agent any questions before signing any paperwork so that you know what it entails.

Boil Down the Benefits of Having a Sole Mandate in Place.

With a Sole Mandate in place, you can rest assured that your real estate transaction is being handled by an agent or broker who is experienced and accountable. Having one go-to person designated to act on your behalf simplifies the process significantly, allowing the agent to leverage their expertise, contacts and resources to manage all aspects of the real estate transaction. Additionally, they will be aware of any market trends or changes which could maximize your profits, ultimately making sure that you achieve success with minimal hassle.

The Advantages of signing a Sole Mandate

• Increased exposure: Sole mandate agents are more likely to invest in marketing your property, as they have exclusive rights to sell it. This means that they may spend more money on advertising, list your property on more websites, and hold more open houses. As a result, your property will be seen by more potential buyers, increasing the chances of a quick sale.
• Reduced paperwork: You only have to deal with one agent and one set of paperwork, which can save you time and hassle.
• More focus: The agent will be more focused on selling your property, as they know that they are the only agent who can do so. This means that they will be able to put in the extra effort (and budget) to get your property sold.
• Better communication: You will be able to develop a better relationship with your agent if they are the only one you are working with. This can lead to better communication and a more streamlined sales process.
• Higher sales price: Studies have shown that properties sold under a sole mandate tend to sell for a higher price than properties sold under an open mandate. This is likely because the agent is more motivated to sell the property quickly and for the best possible price.

Overall, a sole mandate can be a good option if you are looking for a quick and hassle-free sale.