When it comes to selling property, few documents are as important as the mandate agreement between an estate agent and a seller. Yet, mandates are often misunderstood, rushed, or poorly drafted - leading to commission disputes, strained relationships, and even litigation.

At VDM Attorneys, we regularly assist agents with disputes that could have been avoided if the mandate had been clear and legally sound from the start. Here are the five most common mistakes agents make in mandates - and how to avoid them.

1. Failing to Get the Mandate in Writing

📌 Mistake: Relying on a handshake or verbal agreement with a seller.

Without a written mandate, proving your entitlement to commission is extremely difficult. Courts generally require clear evidence of the agreement, and verbal promises are rarely enough.

✅ How to avoid it: Always use a written mandate agreement, signed by the seller, with clear terms that set out your rights, responsibilities, and commission.

2. Confusing Sole and Exclusive Mandates

📌 Mistake: Not fully understanding the difference.

• Sole Mandate: Only one agency may market the property, but the seller can still sell privately.
• Exclusive Mandate: Only one agency may market and sell the property - and commission is due even if the seller introduces the buyer.

Mixing these up leads to conflict and loss of commission.

✅ How to avoid it: Clearly explain the difference to the seller and ensure the mandate spells out whether it is sole or exclusive.

3. Overlapping Mandates with Multiple Agents

📌 Mistake: Sellers appoint more than one agent at the same time without clarity.

This often leads to double commission claims when two agents claim they introduced the same buyer.

✅ How to avoid it: Make sure your mandate specifies whether it is open, joint, or multi-listing, and include a clear definition of “effective cause” - i.e., what qualifies as the agent’s contribution to the sale.

4. Not Defining the Timeframe of the Mandate

📌 Mistake: Leaving the mandate “open-ended” or vague about dates.

If there is no clear start and end date, disputes arise over whether the mandate was still valid when the property was sold.

✅ How to avoid it: Always include specific dates in the mandate. State when it begins, when it ends, and what happens if the property is sold after expiry (for example, to a buyer introduced during the mandate period).

5. Ignoring Compliance and Legal Requirements

📌 Mistake: Using generic templates or outdated mandates.

Mandates that don’t comply with the Property Practitioners Act, Consumer Protection Act, or other legal requirements are risky and may be unenforceable.

✅ How to avoid it: Work with legal professionals to draft mandates that are current, compliant, and tailored to your business model.

️Protect Yourself and Your Commission

Mandates are not just admin - they are the foundation of your right to commission. One weak clause can cost you months of work and thousands of rands in lost income.

At VDM Attorneys, we help agents draft clear, enforceable mandates that protect both their business and their relationships with clients.

📩 Contact us today to review your mandates or assist with commission disputes.