WHAT IS THE DIFFERENCE BETWEEN AN OPEN, SOLE & DUAL MANDATE?

When it comes to selling property in South Africa, understanding the different types of mandates you can grant to estate agents is essential. Each mandate has its own pros, cons and legal implications. In this article, we unpack the differences between open, sole, and dual mandates so that you can make informed decisions about your property transaction.

 

Open Mandate

An open mandate allows you, as the seller, to list your property with multiple estate agents at the same time. Whichever agent brings a buyer and successfully closes the sale earns the commission.

 

Advantages:

Increased exposure through multiple agencies

Potentially faster sale

 

Disadvantages:

No single agent is fully accountable or invested

Higher risk of confusion or duplicated listings

Potential for legal disputes if buyers claim they saw the property through different agents

 

Best for: Sellers wanting to test the market quickly without committing to one agent.

 

Sole Mandate

A sole mandate is an exclusive agreement between the seller and one agency for a set period of time – typically 3 to 6 months. Only that agency may market and sell the property during the mandate period.

 

Advantages:

One point of contact, simplifying communication

Dedicated marketing efforts by the agent

Lower chance of confusion or legal issues

 

Disadvantages:

Limited exposure if the agent is not proactive

Termination may be tricky before the mandate expires

 

Best for: Sellers looking for a streamlined, professional sales process with minimal hassle.

 

Dual Mandate

A dual mandate gives two agencies exclusive rights to market and sell your property. The first to secure a buyer closes the deal and earns the commission.

 

Advantages:

Broader market reach than a sole mandate

More incentive for agents to act quickly and competitively

 

Disadvantages:

Potential overlap or conflict between agencies

Risk of duplicated marketing and confusion in the market

 

Best for: Sellers who want broader exposure without fully opening the listing to the entire market.

 

Legal Considerations

Each type of mandate is a legally binding contract, so be sure to:

 

Read the fine print

Understand cancellation terms

Keep written records of all communication

 

 

Need Advice?

If you’re unsure which mandate suits your situation best, contact our conveyancing team at info@esiattorneys.co.za or call us on 021 943-5111 for expert legal guidance.