Setting a selling price and signing the mandate

Private Property South Africa
Cathy Nolan

When you have chosen an estate agent to help you market your home for sale, that agent will use market research methods, along with her knowledge, experience and expertise, to set the best possible selling price (also called the listing price) for your property. Remember that the selling price must be attractive to potential buyers under current property market conditions, and that a professional, accredited agent is the best person to advise you on setting this price.

After the selling price has been agreed on, you will be asked to sign a mandate document (also known as a listing contract) in which you instruct the agency to market your property for sale. In terms of the Consumer Protection Act, this document must be easy-to-understand and not ambiguous.

Be aware that, once this mandate is signed, the contract comes into existence and both parties are bound by the terms and conditions of the mandate. For example, if you reject an offer on your property that matches or exceeds the agreed listing price, you are liable to pay the agent commission on the offer at the agreed rate.


Found this content useful?

Get the best of Private Property's latest news and advice delivered straight to your inbox each week

Related Articles

Giving permission for commission
When sellers sign a mandate for an estate agent to list their home they aren't simply agreeing to allow an agent to sell the property: they are signing a legally-binding document that will, among other things, record the amount ...
Can I cancel an offer to purchase?
A signed offer to purchase is a legally binding document, and the terms and conditions in it have to be fulfilled. Cancelling may have serious financial implications.
Don't renovate until your new home is registered
Undertaking any renovations or alterations to property before it is transferred into your name could be costly if the sale falls through.