The selling mandate: what you are signing
It is a short contract with substantial effects. We set out what it has to contain and which questions to ask before signing it, including of us.
What the mandate is
It is the written instruction by which the sale of a property is entrusted to an agency. It must state at least the property, the asking price, the term, the amount of the commission and when it falls due. In Italy agency work requires registration with the business register at the Chamber of Commerce: asking for confirmation is an ordinary request.
Exclusive or not
Under an exclusive mandate a single agency handles the property for the agreed period. The same property published by several agencies at different prices and with different photographs presents the market with an offer that does not line up, and the recurring effect is that buyers wait for a reduction.
What is negotiated is the term, against commitments that can be checked: which activities are carried out, where the property is published, and how often a report on viewings and responses is delivered. The length of an exclusive period is judged together with the activities promised: a long term without commitments that can be checked, and a short term with no time to carry them out, share the same flaw.
Term and automatic renewal
Two lines deserve attention: the term, and what happens at expiry. Automatic renewal that continues without a straightforward way to give notice is among the clauses that give rise to disputes. A defined term, with renewal expressly agreed in writing, keeps the effects predictable for both sides.
When the commission falls due
On conclusion of the deal — that is when the offer is accepted and the parties are bound — and not at the deed. It is the least familiar point, because weeks or months pass between the two. Some mandates provide for a later payment date: if that is preferred, it belongs in writing.
The other thing to establish is what the commission covers: professional photographs, publication on the portals, handling of viewings, collection and checking of the documents, assistance through to registration. What is included should be stated, and what is not should be known beforehand. Where an item is handled by a third party — the photography or a measured survey, say — it is worth knowing whether the cost sits inside the commission or stays with the owner.
In short
- The mandate is in writing and states price, term and commission
- The agency is entered in the business register
- Exclusivity: negotiate the term, not whether there is one
- Check automatic renewal and how notice is given
- The commission falls due on acceptance of the offer
- Have it listed in writing what the commission covers
Frequently asked questions
Can I instruct more than one agency?
Yes, where there is no exclusive mandate. The effect on the market is worth weighing: the same property published several times, often at different prices, makes the offer harder to read. If you take that route, the price and the photographs should be identical on every channel.
If I find the buyer myself, do I still pay?
It depends how the mandate is drafted: some exclusive mandates provide for commission in that case too, others do not. It is one of the clauses worth pausing over when reading, and one that can be negotiated before signing.
Do I have to sign a mandate to get a valuation?
Not with us. The valuation is free and separate from any mandate: you can receive it, read it and take no decision at all. A valuation conditional on signing a mandate is not an independent valuation.
Official sources
Note
This guide is general information written by an estate agency. It does not replace advice from a notary, an accountant or the surveyor handling the property. The rules cited are those in force at the date of publication.
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