Contracts • Mandates
Real-estate contracts and mandates: what they must contain
The agency mandate is the contract by which the owner authorises the agency to sell or rent their property. A clear mandate protects both the agency and the owner, and sets the commission. Below you'll see what a mandate is, what it must contain and which types exist.
What it must contain (short answer)
- The parties: the owner and the agency, with complete identification details.
- The subject: the exact property, with address, area and starting price.
- The commission: the percentage or fixed amount and when it becomes due.
- The mandate's duration and the conditions for renewal or termination.
- The mandate type (open or exclusive) and each party's obligations.
Types of mandate
- Open (non-exclusive) mandate: the owner can work with several agencies at once.
- Exclusive mandate: a single agency intermediates, usually with a higher commission and more marketing effort.
- A buyer/tenant mandate: the agency searches for a property for a client, not for an owner.
Table: open mandate vs. exclusive mandate
Open mandate vs. exclusive mandate
| Criterion | Open mandate | Exclusive mandate |
|---|---|---|
| Agencies involved | Several, in parallel | A single one |
| Marketing effort | Usually lower | Higher, concentrated investment |
| Commission | Often lower | Often higher, but secured |
Common mistakes
- Working on a verbal agreement — you can't prove the commission if a dispute arises.
- Not specifying when the commission becomes due.
- Re-reading and retyping the same contract every time, with errors and inconsistencies.
How 4property helps
- Generate mandates and contracts from templates, with the property and client data pre-filled.
- Track each mandate's duration and get an alert before it expires.
- Documents stay linked to the property and to the CRM lead.