Post: Understanding Simple Mandates in Real Estate Sales


What is a Simple Real Estate Mandate?

A simple sales mandate refers to a non-exclusive contract signed between a property owner selling their property and a real estate professional. This type of mandate does not include an exclusivity clause, which means that the owner can sell through multiple agencies or even on their own. It allows greater freedom and flexibility for the property seller while working with various professionals.

Mandatory Mentions in a Simple Sales Mandate

Every sales mandate, including a simple sales mandate, must legally contain certain mandatory mentions. These include:

  • The identity of the seller(s)
  • Contact information and professional card number of the mandated agent
  • Description of the property
  • Sale price of the property, as well as who will bear the cost
  • Duration of the mandate and conditions for termination
  • List of methods used by the mandated real estate agent to advertise and promote the property

Advantages of a Simple Sales Mandate

Compared to an exclusive sales mandate, a simple mandate offers several benefits to both sellers and real estate agents. Some of these advantages are:

Freedom and Flexibility for Sellers

A simple mandate provides property owners with more control over the sale, as they are able to work with multiple professionals and do not solely rely on one agency. Moreover, sellers have the option to sell their property privately, without relying on any agency assistance.

No Dependency on a Single Professional

With a simple mandate, sellers are not limited to working with just one real estate agent. This means that if they are not satisfied with the service of an agency, they can continue their property sale through other mandated agencies without any major setbacks.

Disadvantages of a Simple Sales Mandate

Although there are benefits in opting for a simple sales mandate, keep in mind it also has some disadvantages.

Longer Sale Duration

Real estate sales generally take longer when using a simple sales mandate compared to an exclusive one. This is due to the seller working with multiple agents or even selling privately, which may require more time to find a suitable buyer and close the deal.

Higher Costs for Commissions

There is a higher risk for mandated professionals not receiving their commission with a simple mandate compared to an exclusive mandate. As a result, commissions associated with a simple mandate usually come at a higher cost than those with an exclusive mandate.

Hindered Property Sale Progress

When mandating too many agencies under a simple sales mandate, advertising for the property may appear several times on popular online platforms, leading potential buyers to believe that the property may be unsellable.

Terminating a Simple Sales Mandate

Sellers have different options to terminate a simple sales mandate :

  • Within 14 days: Sellers are able to rescind the contract without justification within this period by sending their termination intentions via registered mail.
  • Past the irreversible period: Once this initial two-week period has passed, the mandate’s conditions dictate the conditions necessary for termination. In this case, sellers can only terminate the agreement if they can prove serious misconduct or non-fulfillment of their obligations by the mandated agent.

A simple real estate sales mandate offers flexibility and freedom to property sellers, allowing them to collaborate with multiple professionals and even sell privately. However, this mandate comes with disadvantages such as longer sale durations and higher commission costs compared to an exclusive mandate. Thoroughly weighing the pros and cons will help determine whether a simple sales mandate is suitable for your specific needs.