The Essential Guide to Understanding Real Estate Mandates

Real Estate Mandates

Marketing or selling a property can be overwhelming and confusing, especially with the multitude of legal requirements that come with it. One of these crucial obligations is real estate mandates. Whether one is a seasoned developer or an experienced investor, understanding what these mandates are and how they affect the transactions is crucial to have a smooth and successful real estate experience. 

In this essential guide, BeyondWalls will dive into everything stakeholders need to know about real estate mandates so they can make the right partnership for their next investment opportunity.

What is Real Estate Mandate?

In real estate sales, a mandate is a right to represent a seller in a transaction and collect a commission if the property is successfully sold. The main purpose of having a mandate is to protect both the seller and the agent by ensuring that the agent is working in the seller’s best interests.

A real estate mandate typically starts with an agreement between the agent and the seller, in which the seller agrees to give the agent the right to sell their property. The agent then finds potential buyers and brings them to the table. The agent collects a commission from the seller if a sale is successfully completed.

Types of Real Estate Mandates

The real estate mandate services can be classified into two types: open and exclusive. Both have pros and cons that should be considered before signing on with either one.

  • Open Mandate: An open mandate essentially allows one to put the property up for sale with multiple agents. This can be beneficial if the developer wants the property to be seen by as many potential buyers as possible. The downside is that the developer will have to pay commission to each agent that brings in a buyer, which can add up quickly. Open mandate may also have less control over the marketing and sale.
  • Exclusive Mandate: An exclusive mandate or sole mandate offers the chance to work with just one agent. This can simplify the sale process and save money on the commission fees. However, it does limit the overall exposure to potential buyers. Such a process can extend the time period involved with a sale. 

Open vs Exclusive Mandate: Which One’s Better?

It is difficult to determine which kind of real estate mandate is most suitable as various elements, including the property’s type and site, market conditions, and the landowner’s personal preferences, must be considered. An open mandate can expand the property‚Äôs reach to likely customers while an exclusive mandate may provide a single agent or agency with more focused promotional activities. 

Ultimately, it is the decision of the proprietor to weigh up the benefits and drawbacks of both mandates and make a judgment on which best meets their requirements.

Advantages of Open Mandates

There are many advantages to having a real estate sole selling, including:

  • Focused Marketing Efforts: Agents or brokers can create targeted advertising and promotional materials, and work with the property owner to come up with the best possible strategy for selling the home.
  • More Control Over the Selling: Agents can manage the entire process from start to finish, including real estate project launch, advertising, showings, negotiations, and even post-sale follow-up. Additionally, because the agent is solely focused on selling the property, they are typically able to sell it faster and for a higher price than if it were listed with multiple agents.
  • Greater Exposure to Potential Buyers: To reach a broader audience of qualified and interested prospects, the agent or agency can use its professional network, database, and marketing tools.
  • Higher Chance of a Successful Sale: Coupled with the above benefits, the property receives more marketing exposure with a sole mandate as it will be listed on multiple real estate portals and in the agent’s office. This gives buyers a better chance of seeing the property and making an offer.
  • Personalised Service & Support: Real estate mandate companies can provide the property owner with a more personalised and dedicated service. The service includes regular updates, feedback on the marketing and selling or renting processes, and expert advice and guidance on maximising the property’s value.


Real estate mandates are an essential part of the real estate industry and must be considered when entering into any transaction. It is important to fully understand all relevant laws, regulations, and contractual obligations involved to ensure that buyers and sellers are protected throughout the buying process. Investing in real estate may seem daunting at first, however taking the time to research different mandates will ultimately pay off.