What's The Difference Between A Sole, Dual And Open Mandate?

When it comes time to sell your home in South Africa, one of the first - and most important - decisions you'll make is how you want to instruct estate agents. The agreement you sign with an agent is known as a mandate and it sets out how the property will be marketed, who will be responsible for handling buyers, and how commission will be earned.

For sellers, there are three main types of mandates: sole mandates, dual mandates, and open mandates, each with its own pros and cons, and understanding these differences is crucial to making the right choice.

Here, Lew Geffen Sotheby's International Realty explores each option in detail, weigh up the benefits and risks to determine which is usually the smartest move for most South African home sellers.

What is a Sole Mandate?

A sole mandate gives one estate agency the exclusive right to market and sell your property for a fixed period (commonly 60-90 days). Only that agency may advertise the property, hold show houses and introduce potential buyers during this time.

Pros of a sole mandate:

Focused marketing efforts: Since the agent knows they have exclusive rights, they are more likely to invest time and money in professional photography, online advertising and targeted buyer campaigns.

• Consistent property branding: Buyers see the home marketed under one clear strategy, avoiding confusion that comes with multiple ads showing different information.
• Clear accountability: You deal with one point of contact, making communication and feedback straightforward.
• Better negotiation: Your agent can negotiate offers effectively without competing with other agents rushing to close a deal first.
• Often higher selling price: Because the agent isn't pressured to beat competitors, they can focus on achieving the best possible price.

Cons of a sole mandate:

• Commitment required: You need to be confident in the agent you choose, as you are locked in for the duration of the agreement.

What is a Dual Mandate?

A dual mandate means you grant the right to market your home to two estate agencies simultaneously. Both agencies have equal authority to advertise and introduce buyers.

Pros of a dual mandate:

• Broader exposure: Two agencies may reach different pools of buyers, which can create more interest.
• Healthy competition: Agents may work harder to close a deal before the other one does.

Cons of a dual mandate:

• Diluted commitment: Each agent only has a 50% chance of success, so they may not invest heavily in marketing.

• Buyer confusion: Buyers may see the property marketed in two places with slightly different details or prices, which can raise doubts.
• Commission disputes: If both agents claim to have introduced the same buyer, arguments may arise over who deserves payment.
• Pressure to accept lower offers: Agents may rush negotiations to secure the sale before their competitor does.

What is an Open Mandate?

An open mandate allows you to appoint multiple agencies - or even sell the property privately - at the same time. There's no exclusivity and no limit to how many people can market your property.

Pros of an open mandate:

• Maximum exposure: More agents mean more potential buyers are being reached.
• Flexibility: You can work with as many agencies as you like and even negotiate directly with buyers.
• No long-term commitment: If one agent isn't delivering, you aren't tied to them.

Cons of an open mandate:

• Lack of accountability: No single agent takes full responsibility for the sale. If your home doesn't sell, there's no clear person to hold accountable.
• Lower-quality marketing: Agents are unlikely to spend much money or time on advertising since the chances of them closing the deal are slim.
• Reputational damage: When buyers see your home listed across multiple platforms at different prices, it can look desperate and unprofessional.
• Confusing process: Multiple agents calling you, overlapping viewings, and inconsistent feedback can quickly become stressful.
• Lower selling price: Because agents compete on speed, they often encourage sellers to accept the first reasonable offer rather than negotiating for the best outcome.

Sole vs Dual vs Open Mandate - Which is Best?

When comparing the three mandate types, here's what sellers need to keep in mind:

Open mandates may sound attractive due to exposure, but they often damage your property's image, create chaos, and result in lower selling prices

Dual mandates offer more control but can still create confusion, commission disputes, and diluted effort from agents.

Sole mandates provide clarity, exclusivity, and dedicated marketing, typically resulting in faster sales and better prices.

Ultimately, a sole mandate offers the ideal balance between control, commitment, and results. It aligns the agent's motivation with your goals: to sell your home for the highest possible price in the shortest possible time.

With one clear strategy, one accountable agent, and a professional presentation, buyers are more confident, negotiations are stronger, and you avoid the stress of managing multiple agencies.

Of course, the key to success is choosing the right agent- one with a proven track record, strong marketing tools, and local market knowledge. Once you've done that, a sole mandate gives them the confidence and incentive to deliver their best work for you.