Agent's Exclusive Mandate

The seller and the real estate agent have conflicting interests in the sale of a property. The seller needs to be able to escape from a situation where the agent is not performing as well as the seller expects. But the agent needs to rest assured that the seller will not terminate the agent's mandate and "rob" the agent of the opportunity to perform to the mandate.

You have probably had a look at the Exclusive Seller's Agent Mandate I posted earlier, so have a look at the "Agent's Exclusive Mandate" below, and see if you can spot the differences:

I/We . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ID No. . . . . . . . . . Tel.. . . . . . . . . . . Fax . . . . . . . . . . . . . Email. . . . . . . . . . . . . . Postal address . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ("the seller") herby grant to . . . . . . . . . . . . . . . . . . Principal . . . . . . . . . . . . . . . . Tel.. . . . . . . . . . . Fax . . . . . . . . . . . . . Email. . . . . . . . . . . . . . Postal address . . . . . . . . . . . . . . . . . . . . . . . . . . . ("the seller's agency") represented by . . . . . . . . . . . . . . . . . . . Fidelity Fund Certificate No.. . . . . . . Tel.. . . . . . . . Fax . . . . . . . . Email . . . . . . . . . . ("the seller's agent") the irrevocable, sole and exclusive mandate to sell Erf/Sectional Title unit . . . . . . . . . . . . . . . . . also known as Street/Complex Address . . . . . . . . . . . . . . . . . . . . . . . . . . . located in suburb . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . of the town . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ("the property") subject to the following terms and conditions:

Mandate Term

The term of this mandate shall be no less than 90 days, and shall commence on the date of acceptance of this agreement by the parties. ("mandate period")

If, during the mandate period, the agent holds a show house, the mandate period shall automatically be extend to 14 days after the show house, if the remainder of the mandate period is less than 14 days.

The mandate period can be reduced or increased by mutual agreement.

This agreement will remain in force indefinitely, despite the mandate period, for all transactions where the purchaser of the property agrees that the agency is the effective cause of the sale.

Asking Price

The agent shall sell the property at the gross value of R . . . . . . . . . . . . , as determined by the seller, or such lesser amount as the seller may be willing to accept.

The agent shall submit all offers received to the seller, regardless of the offer meeting the asking price or not.

Agent's rights and undertakings

During the mandate period, the agent shall have the right to

access the property at any reasonable time, after obtaining the seller's permission, to introduce prospective buyers to the property;
communicate with the municipality and/or governing body of the complex to determine the current balances payable in respect to the property, as well as to obtain any information regarding the property from any person or institution, which the agent deems necessary.
share this mandate with any other real estate agent, in an effort to sell the property, at the agent's sole discretion.

During the mandate period, the agent undertakes to

make the best effort to find a buyer for the property
carry the costs of advertising the property in such media and at such frequency as the agent deems necessary.
communicate with the seller and provide feedback regarding the progress made in terms of marketing and selling the property, such communications to be in writing at the seller's written request.

Commission

The agent shall, at the successful execution of the mandate, be entitled to payment of a commission of 7.5% (plus VAT) of the gross selling price the property was sold for. The commission is payable on the date of registration of transfer of the property in the name of the purchaser.

This commission shall be payable if

the property is sold during the mandate period, whether by the seller or any other person.
the property is sold, by the seller or any other person, to any person introduced to the property during the mandate period, by the seller, the agent or any third party whatsoever, within 90 days after termination of the mandate period. After this period of 90 days after the mandate period, the Common Law Principal of effective cause shall prevail.
the seller appoints any other real estate agent to sell, or attempt to sell, the property during the mandate period.
the seller refuses to accept an offer to purchase the property at the terms set out herein.

Seller undertakings and guarantees

The seller undertakes and guarantees that

the seller shall not appoint any other real estate agent to sell, or attempt to sell, the property.
the seller shall not do, or neglect to do, anything that may prevent the sale of the property, or frustrate or hinder the agent's efforts to sell the property.
withdraw the property from the market before the mandate period expires.
all material defects in the property, whether patent or latent, have been disclosed to the agent, and that the agent has been authorised by the seller to disclose such defects to any potential purchaser.

Terms of the sale

The terms of the sale will be those contained in the Agency's standard Offer to Purchase document, which may be obtained on request. The seller accepts that any offer to purchase the property may contain conditions providing for

the purchaser to apply for a loan to cover the purchase price.
the sale of another property or business of the purchaser.
the seller to provide certification by an accredited entomologist regarding the absence of infestation, (after repairs and/or treatment if necessary).
the seller to provide certification by an accredited electrician that the electrical installations comply with the requirements of the Occupational Health and Safety Act (after repairs, if necessary).

Disputes

If any dispute arises between the seller and the agent, relating to this agreement, such dispute shall be decided by the Arbitration Tribunal ("the tribunal") established by the Estate Agency Affairs Board.

The Constitution and Procedural Rules of the Tribunal ( a copy of which can be obtained from the agent or the Estate Agency Affairs Board) forms part of this agreement.

Special conditions

This agreement constitutes the complete agreement between the parties. Any changes to this agreement shall be made in writing and signed by both parties.

Any indulgence of a breach of any party's rights will not constitute a waiver of such rights.

In case of any breach of this agreement, the costs of any legal action shall be paid in full by the Party in breach.

Other conditions

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The seller confirms that the seller understands the meaning and consequences of the terms and conditions contained in this mandate.

I, . . . . . . . . . . . . . . , the spouse of the seller, herby agree to this mandate and confirm all the terms and conditions contained herein.

Signed at . . . . . . . . . . (place) on . . . . . . . . . . . (date)

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
the seller seller's spouse / witness 1