A mandate is an agreement between a seller and an estate agent regarding the marketing of a property. It also includes the duration of the agreement and obligations for both parties.
This agreement helps eliminate any unnecessary confusion as the mandate keeps the terms agreed by both seller and agent. The mandate includes the following information-:
– DURATION OF THE MANDATE
– SPECIFIC TERMS AND CONDITIONS OF THE MANDATE
– INSTRUCTION TO RENDER A SPECIFIC SERVICE FOR THE PROPERTY MANDATED
– AN ARRANGEMENT FOR THE PAYMENT OF SERVICES RENDERED

The Mandate provides agent and seller with the following benefits-:
1. BETTER PRICE– It provides time to the agency to secure the highest price according to the market dynamics.
2. COMMITMENT– It creates a moral commitment between the agency and the seller. It motivates the agency to sell your property with focussed effort.
3. REGULAR UPDATES– The agency will provide you with regular activity reports & updates on offers/ visits and other market dynamics related to the property
4. ADVERTISING– The agency is eager to spend its advertising budget on your home keeping in view that the property is exclusively mandated to them
5. RISK-FREE– Agency would help in financial & legal due diligence of buyers. It avoids the confusion of multiple brokers, double commission claims & price confusion as one price is quoted by the agency after confirmation from the seller

Restricting your options can do wonders for both the agent and the seller.
It is due to the below-mentioned factors-

1. No Random Calls/ Pitches / Emails/ Messages from Random Agents
2. Exclusive mandate would only focus on serious potential buyers/ tenants
3. Comprehensive marketing strategy handled by RE experts
4. Attentive Visits, Prequalification of Potential Buyers/ tenants
5. Regular updates &track of all offers/ bids
6. Financial & Legal Due Diligence of Potential Buyers
7. Assured highest achievable price as Agency & Sellers Goals are aligned

A sale mandate, whether exclusive or not, is signed for a limited period. If the property is not sold during the period, it becomes void. After that, the seller may decide to go through one or more other agencies to put his property on sale

Some of the advantages are-:

1. ACCOUNTABILITY– selling through one agent gives the seller more accountability.
2. PRICE CONTROL– It guarantees a better price for your property
3. MORE PRIVACY– You will know exactly who has your details, and how they are sharing your information and with whom.
4. INCREASED MARKETING– An agent would like to spend his marketing budget on your property to attract the best customer.