 okay guys just give me another one minute it's an echo right for you yeah for me yeah so let me just start it now i think it's a zoom issue so i'm gonna close it now and then we'll come in just now um so what are you are you closing the zoom and then coming back yes yes okay so we just wait and we'll bring us back in yeah and welcome to episode 384 of the private property podcast i'm your host was a man don't walk home alone it's the monday edition of the private property podcast in vietnam for the first time welcome to the family you're tuned into the leading property podcast in south africa catering to your property needs remember to go to our facebook or youtube page to catch up all the great episodes that you've already missed out on and all our regular viewers at home whether you're watching us on facebook on youtube or on instagram welcome to it you know how we do every single weekday you're now having an appointment uh at seven p.m where of course i'm always in conversation with a property expert who helps us navigate our property journey and it doesn't matter where you are in your property journey we're certainly here to make sure that you get the best insight trends knowledge that you need in order to make better property decisions and talking about making better property decisions i'm never alone you can of course tune into the great shows that we have right here across private properties social media pages every single weekday at eight p.m it is a monday so you can catch chad on the whom shepherds show and you can catch them again later on in the week on fridays at the same time and it was tuesdays and thursday zumba linova brings you the farming podcast tackling all things agriculture and wednesday's esti clarson brings you the first time home buyers show so do make sure that you tune into the rest of the team every single weekday at eight p.m and also go to our facebook page we've been running an incredible competition we'll be giving away 500 rs and cash every single evening and all you have to do to send a chance of walking away with that cash prize is to share with us some of the great property knowledge and advice that you've picked up while watching the show and you have to make sure that if you've entered you're watching us live so that when we call your name you can certainly uh you know drop us a text in order to claim your prize if i remember the prize money should be sitting uh what is it sitting at the other my colleague's gonna bring it up not sure we're sitting at a 1500 i kind of remember from friday uh we got our winner but he'll certainly bring it up and that's of course what you can look forward to later on on the show so do make sure that you stay tuned you can find myself at zumba linova underscore on twitter as well as on instagram well we're kicking off monday looking at why agents should insist on a written mandate so you're probably wondering okay why what is a mandate uh and this is something that's very applicable especially to people who are looking to sell their property you want to make sure that you have a full understanding of what mandates are the benefits of you know a mandate and why an agent that you approach may want you to have one in place and to help us get a good sense of what this is all about i'm joined this evening by danielle krill who's a senior associate at km from odike and associates danielle good evening and thank you so much for joining us on the show hi good evening thank you so much for having me it's such a pleasure and i think you know let's start with what is a mandate right because i think this is one of those things that uh oftentimes people just wouldn't know uh i mean i was really saying to you of it because so many of us don't sell our properties as often as we typically buy a property so when we talk about a mandate what exactly are we talking about so in as simple terms as possible a mandate is a direction from one party to another party to attend to something on maybe half so in the in the property space um the mandate is between the seller and the agent for the agent to sell the property on behalf of the seller so it's a written it should be a written agreement between the parties and it should stipulate a few things and one being the length of the of the contract so generally it's 90 days because that's about the time that it takes to to fairly market a property and then it would include the selling price and it would also include the commission rate and then it would include any other relevant terms that are required between the parties so the mandate is the direction from me to you do what i needed to do which is sell my property i do want to say to our viewers at home i know that you seem to be having a bit of a technical um you know challenge behind the scenes i see some people struggling to reach us on all his struggle rather initially to reach us on facebook but we're now on we do apologize for that there's something about monday and you know the tech remnants but we are indeed now live across all the platforms thank you so much for your patience and of course dropping us the text to say hey and it's morning where are we we certainly are here and of course kick starting our monday edition of that property conversation now daniel i think when we look at um you know a perspective seller who is in the market for an estate agent before they sign a mandate with somebody perhaps also just explain the different kinds of mandates because you know sometimes you get to your sole mandate or use of mandate perhaps just take us through some of the different kinds of mandates and what do they effectively mean and so you get four types of mandates the first is an open mandate which is a listing of the property with multiple agents and any one of them could sell the property and the one who gets the buyer first is the one who gets paid the commission so that's an open mandate then you get a dual mandate where you've got two agents working on the property to sell it and they split the commission then you get a sole mandate which is one agent only and they are the only ones then who has the right to market and sell the property something to remember with the sole mandate though is that you as the owner potentially could sell the property yourself but you need to be mindful of the wording of the agreement because if it has anything that says that the agent has a sole right or a sole mandate and it specifically has those words in it then it's not a sole mandate it's a sole and exclusive mandate which means they are exclusively allowed to market and sell that property so those are the four types open dual sole and sole and exclusive and I mean I think Daniel when we look at those four different types of mandates and we've got a seller who you know has never sold their property how can they best kind of determine what kind of mandate would best suit their needs what kind of things today prospective seller be thinking through before deciding on the kind of mandate that they want to sign with either you know one agent or of course multiple ones in the event of an open mandate yeah so in the industry it's widely regarded as the best option to go with a sole mandate the reason for that is often with a dual mandate or a open mandate you've got more than one agent working on the property so they're not potentially putting in as much effort as they could or spending as much of their marketing budget or advertising budget as they could because they're not the sole agent so generally it is accepted or it's advised that you should go with a sole mandate you're going to have a more effective effort and attempts at selling the property you are going to pay commission only once there is a possibility with other with the other types of mandates where they could be commissioned paid to more than one agent plus with a sole mandate you've got a fixed rate yeah you'll get a competitive comprehensive and good quality service from a sole mandate versus a open mandate and there's most importantly with a sole mandate there's a lot of accountability and safety in that you've got an agreement with one person you know what to expect they know what to expect from you everything is in writing because sole mandates must be in writing whereas other types of mandates don't have to be and you've got that safety net like you do with any contract this is a real contractual relationship a serious one because you're selling a property and you want to have that safety net in place so advisable would be a sole or a sole and exclusive mandate I am this evening in conversation with Danielle Creel who's a senior associate at KM Ramudiki and associates looking at why agents should insist on a written mandate and I can already see some of the love that we're getting on our Facebook page from our viewers at HomeMinsibleTelesi watching Kosofumelo, Abeta Albertine, Happiness Manulega, Farana Siddiqui I see you watching and dropping those screen hearts who absolutely do love the love keep it coming I want to so go for a quick break and see who the lucky winner of that cash prize I see my colleague that put up it's a thousand five hundred rands if I saw properly on the screen that is up for grabs remember if you call your name you have to drop us a message in order to claim your prize let's see who this evening's lucky winner is and the lucky winner this evening is Utabo Pala Tabo Pala congratulations to you walking away with that one thousand five hundred rands in our daily competition right here on the private property podcast with myself as we continue our conversation with Danielle Creel but I want to go through some comments as we run this competition of some of the entrants that some of you at home already sent to remember to go to the pinned post on our Facebook page and share with us some of the great property insight and knowledge that you've picked up and that's how you set a chance of walking away with that cash prize we've got Urus and Tuan and saying I just love the home shopper show every time I watch the show I remember MTV Cribs Chad is doing an awesome job hashtag your spacey rules thank you so much to the chat um uh Rose I know that Chad certainly does appreciate that and of course you can catch a measure on this evening at 8 p.m and we've also got oh Cosmos Nubin who says investing in property is a wise move in one's lifetime going for such needs uh professional advice and that free or that's free of charge and thank you to private property and Unolevo Guinina says that property is the best investment and when buying a property must not deposit the money into the seller's account you must involve lawyers of course that's a very big one never never never uh you put money during the middle of a property transaction uh to even the agents account or the sellers account there are transferring attorneys that are there and they've got uh you know a trust account that is of course got fidelity cover so it's surely going to happen you know that you're not going to lose out on your money I've got a comment here coming through from um Teartu Munya saying according to the code of conduct of the state agency a Facebook uh uh board and open can be verbal and I think that's what Danielle had said that uh you know typically the sole mandate is one that's written uh the sole and excuse me that's the one that you write down but an open mandate certainly can be verbal and Danielle I mean when we look at um you highlighted earlier on that oftentimes you know a mandate would typically last about 90 days what happens in the event way you've given an exclusive and sole mandate to an agent and you as a seller and and the wording of it is such that really whoever becomes um or whoever finds the property the agent is going to get commissioned from it so really as the as the seller you shouldn't be trying to solicit you know a buyer by yourself but what happens if in that 90 day period you as a as a seller you somehow find your own um you know buyer and somehow want to uh no longer honor the you know the contract that you essentially entered into and what what kind of steps or what would typically happen in situations like that okay so in a situation like that um the seller is essentially revoking a mandate so they've given you this sole mandate to solve my property and now they've either found their own buyer with a sole mandate remember I said you that is an option as long as the wording of the of the mandate allows that um in which case the the the finding of a new buyer would terminate that agreement um if for example the the agent isn't doing their job or that they're unhappy with the type of buyers that they're bringing you the it's too low the selling prices that all the the offers are too low then you can revoke your mandate and you can say I no longer want you to sell this property for me but you must bear in mind that the contract that you've signed the mandate is king as with any other contract so if there are clauses there with really with regards to terminating and there may be some kind of damages payable you need to just bear that in mind but it is possible to do and it's not an unusual thing and I think wouldn't I mean do you find that sometimes sellers want to even backtrack for instance uh when it comes to the commission because what I've what I've found what I've seen and it's not as common because I mean we know that by the time uh an agent has found you know the potential buyer uh conventions have already gotten um you know in place they would have seen the contract that she signed so they know how much provision to make for the estate agent in terms of the proceeds of the sale of that particular property but have there been instances where sometimes a seller then wants to let's say the the the rate where the commission rate was you know sitting at 7% and they suddenly want to decrease it to you know less than that are there instances where sellers have wanted to do something like that look I'm sure they want to but once you sign that mandate and that's one of the benefits of a sole mandate or a solid exclusive mandate is the commission is fixed if it's if you've agreed to 5% or 7% or whatever it is that is what this agent is going to make out of the sale if you want to adjust that or change that in any way you have two options the one is that you if you can get the agency to read to it you can obviously have that changed from the original main registry agreement in the the other way is to reach the agreement basically and with that which is not advisable you open yourself up to damages and the agreement is there for a reason and you need to stick to it so if you want to make a change it's either by agreement or you're going to reach that agreement and then you open yourself up to damages and you know one of the things that we need to always be mindful of is you don't want to you know backtrack on your contractual obligations at all I mean even paid from you know when you sign an offer to purchase that you don't want to find yourself changing your mind and so as much as we emphasize from the you know purchase aside that by the time you sign that OTP need to be very clear that this is indeed a property that you you know you want to you're not going to simply trying to backtrack similarly to you know the seller you can't want to change the terms of you know a contract that you've now entered into because as you say they certainly are repercussions and and I think it's also just a bit poor form as as a you know as a as a as a seller to be doing such because you pretend to find that by then an agent has actually put in the work it has already listed your property and so you wanted to kind of backtrack if anything is can often be you know to almost the agent working backwards I want to come back with a comment here coming through from a tiang to me I say if the seller decides not to sell the property can he cancel the sole mandate without having to pay damage so you put it on the market and you as the seller decide actually I don't I'm not actually don't want to sell anymore and are there any you know monies that the seller would well form a seller in this context would have to pay so the seller can revoke that mandate at any time and decide I don't want to sell property and they would probably be most likely to be some sort of clause in the mandate is if you do that then you may be able for some of the advertising costs the marketing costs that have already gone into it so it will depend where in the process you have decided to work for example the seller as an agent is about to buy them a seller then they mark it with their advertiser and had an open house they put a lot of effort into it then obviously there is some financial issues you know I'm sorry to interrupt you the sound that we're getting from your side is very distorted for some reason towards the still end of the conversation I know that I am slightly struggling to to hear you and I know that the viewers will probably also be struggling to hear you I want to see if we're able to get just a last comment from you in terms of the last tip for our sellers in particular because I think agents know what they're doing this is their day to day you know role just one final tip for the viewers at home when it comes to mandates and working with their agents I'm actually back into you as well but what I was saying is that if you're going to revoke your mandate just bear in mind that there may be some costs that will be involved with that depending on when in the process you decide to revoke and unfortunately we're going to have to do today I'm so glad that that last sentence we actually were able to get it in but really having a bit of a bad connection day with Danielle at the tail end of our conversation but I know we'll definitely have a back on the show in the future Danielle thank you so much for joining us this evening on the private property podcast and that is Danielle Creel who's a senior associate at APN from Decay and Associates wrapping up the Monday edition tech gremlins and all of the private property podcast with myself as I'm doing my kumaila that's how we started right so many of us in Jobe this morning woke up with no water I'm very lucky we actually still have water but I know that many people unfortunately did not have water I remember to turn off your Giza don't use the water in the Giza and then leave your Giza on that's a very very very big help has that you're also going to probably burn your Giza when the water comes back so do make sure that you do that and we're going to wrap this up I'll be back on your screens tomorrow you may hopefully the tech gods are going to be on our side and I'm going to have any issues but I leave you the capable hands of Chad with the home shopper store at 8 p.m for myself as I'm doing my kumaila I'll be back tomorrow and my colleague has just alerted me we unfortunately do not have a claim of the 1500 rand meaning that we've got a roll over and 2000 rands is up for grabs tomorrow well that's it for myself as I'm going to walk my long I'm back again tomorrow and of course do you have yourselves a great evening so hope you're staying home and staying safe