You have put your house up for sale, you have chosen to entrust its sale to a real estate agent or real estate agency, a real estate agent ? This person asks you to sign a sales mandate, before signing a simple mandate or an exclusivity mandate, Are you sure you know what you are going to commit to? ? Here is some useful information on this subject:.
The sales mandate : What do you need to know before signing ?
A sales mandate is a bilateral contract signed between a real estate agent and the owner of real estate.. It formalizes the service provision and the level of involvement of the real estate agent. It does not incur any costs, however, he mentions the agency’s fees, payable if it completes the sale. This is a mandatory step for the professional to be authorized to put your home on the real estate market.. This document contains the details of your sale, the type of mandate, real estate agent’s commission, the price of your property… Be careful before signing this contract.
The essential elements : client & Representative
To guarantee the rights of the seller, the mandate includes a certain number of elements. He designates the(s) client(s) (seller(s)) with his (their) nom(s) and their contact details. It mentions the contact details of the real estate agent, (the agent), their professional card number appears. Description of the property, details about the house, his address, its precise description, ses annexes… The sale price of the property, net seller price via a accurate estimate. Agency fees, their fixed amount or percentage, payable once the sale is effective at the notary. The duration of the sales mandate, generally 3 irrevocable month (See below). The mandate also stipulates the means implemented by the agent, what actions are taken to make the sale : Means of distribution, strengthening of the diagnostic file, call screening, visits, negotiation, transaction, reports… You should also mention (and choose) the type of mandate : Simple or Exclusive ?
The simple sales mandate : Flexibility
The simple sales mandate allows the agent to put your property up for sale, but your property may be entrusted to other agencies or real estate agents, you can also sell your property yourself from individual to individual. This is the most flexible mandate, giving you the most freedom, you can cater with several agencies or deal directly with buyers. This type of mandate has two disadvantages, if your property does not sell quickly (Usually due to an overestimated price) the simple mandate is generally not very involving for the agent. For the buyer, seeing a house appear in several agencies is a bad signal, this may cause difficulties in selling the property in question. Different agencies therefore different estimates, different fees, therefore different selling prices, everything to confuse the future buyer and not receive an offer at the initial sale price. Depending on market conditions, generally the sales period lengthens.
The exclusive sales mandate : Efficiency
The exclusive sales mandate offers exclusivity of the sale to the chosen real estate agency. Throughout the duration of the mandate, you cannot contact any other agency, you cannot sell the property yourself directly to private individuals either.. A binding mandate for the seller which offers the monopoly of the sale to a single agent, suffice to say that you will have to choose it carefully. It is very advantageous for the real estate agent, he maximizes his chances of earning a commission, depending on the agency, he can also receive a bonus for having signed an exclusivity mandate. It guarantees “generally” high-end service, and unparalleled motivation for the agent, your property is highlighted, it is valued and exclusivity also brings a certain attractiveness. Usually this type of mandate, if the sale price has been correctly evaluated, accelerates sales (less than 3 month), involves the agent in finding targeted and qualified buyers in order to complete the sale. Negative point, you cannot sell directly if you find a buyer, you will have to pay the agent’s commission or fees in any case. Except if you opt for semi-exclusivity.
The semi-exclusive sales mandate
The semi-exclusive sales mandate gives a monopoly on sales to a single real estate agency but you retain the right to sell on your own if you find a buyer., and this without commissions for the real estate agent. Interesting if you want to be able to keep the possibility of selling on your own, at no cost to you or the buyer.
The co-exclusive sales mandate
The co-exclusive sales mandate to a limited number of real estate agencies pre-defined in the mandate. The owner cannot sell directly to an individual.
Withdrawal of mandate : Deadline and solutions
If for one reason or another, you wish to terminate a sales mandate, there are several scenarios. Either the terms of termination are included in the mandate, in which case you will need to refer to it. You wish to withdraw a simple mandate, you signed it outside the agency, you have 14 withdrawal days, All you need to do is send a registered letter with acknowledgment of receipt.. You can also terminate the contract at the end of the irrevocability period. (Generally 3 month) with notice of 15 days. In the case of a semi-exclusive mandate, you can end it the same way, upon expiration of the irrevocability period (Generally 1 an) with notice of 15 days, or always in the 14 days following signature at your home via registered letter with acknowledgment of receipt. For an exclusive mandate, the terms and conditions are the same as for a semi-exclusive.
When signing the sales mandate, pay close attention to the clauses relating to the conditions of termination.. Please note that no exclusive mandate can be tacitly renewed without this being mentioned., the duration of a mandate is limited, its duration must be specified in the mandate.