What Is an Agency Mandate?
An agency mandate is a formal agreement between a property owner and a real estate agency, outlining the terms under which the agency is authorized to market and sell or rent the property. It sets clear expectations for both parties and ensures a structured, professional approach to real estate transactions. Additionally, having a mandate in place ensures compliance with the Real Estate Agent Authority Act 2020, which regulates fair and transparent real estate practices.
Types of Agency Mandates
1. Exclusive Mandate
With an exclusive mandate, the property owner grants sole selling rights to a single real estate agency. This means only the chosen agency can market and negotiate the sale or rental of the property. Benefits include:
- Dedicated marketing efforts – The agency invests more resources in advertising and client outreach.
- Stronger negotiation power – A single point of contact prevents price undercutting from multiple agencies.
- Simplified process – Owners deal with one agency, reducing confusion and potential conflicts.
2. Sole Mandate
A sole mandate is similar to an exclusive mandate but allows the owner to sell the property independently. However, other agencies are restricted from marketing it. This option is ideal for sellers who want professional representation but also wish to retain some control over the sale.
3. Open Mandate
Under an open mandate, multiple agencies can list and market the property simultaneously. While this may seem beneficial in terms of exposure, it can lead to:
- Conflicting pricing strategies – Different agencies may list the property at varying prices.
- Less commitment – Agencies may not invest as much effort due to the lack of exclusivity.
- Uncoordinated marketing – Inconsistent messaging across platforms can confuse potential buyers.
Why Choose an Exclusive or Sole Mandate?
For sellers and landlords seeking efficiency and results, an exclusive or sole mandate offers:
- Higher commitment from the agency – A dedicated team focused on closing the deal.
- Better property positioning – A well-structured marketing campaign without conflicting listings.
- Professional negotiation and support – Ensuring the best price and smooth transaction.
How to Select the Right Real Estate Agency
Choosing the right agency is crucial. Consider factors such as:
- Market expertise – Experience in your specific location and property type.
- Marketing strategy – The agency’s approach to online and offline promotion.
- Track record – Proven success with similar properties.
- Transparency – Clear terms and open communication.
Conclusion
An agency mandate is an essential tool in real estate transactions. It ensures clarity, commitment, and compliance with the Real Estate Agent Authority Act 2020, which governs fair and professional industry standards. While an open mandate provides flexibility, an exclusive or sole mandate offers structure, efficiency, and a higher likelihood of success. At Tropical Riviera Realty, we provide expert guidance and dedicated service to help you achieve the best results. Contact us today to discuss the right mandate for your property!
