Agency mandate and commission: what you are signing
It is a short contract that decides a great deal. Worth reading calmly, and worth knowing which questions to ask before signing it — including of us.
What the mandate is
It is the written instruction by which you entrust the sale of your property to an agency. It must state at least the property, the asking price, the term, the amount of commission and when it falls due. In Italy estate agency requires registration with the Chamber of Commerce: asking for confirmation is legitimate and normal.
Exclusive or not
With exclusivity a single agency works the property for the agreed period. The benefit is not only the agency's: a property listed by four agencies at four prices with four sets of photographs tells the market that nobody is steering it, and the first effect is that buyers wait for the price cut.
The right thing to negotiate is not removing exclusivity but limiting its term, and asking in return for verifiable commitments: what will be done, where it will be published, how often you receive a report of viewings and feedback.
Term and automatic renewal
Look at two lines: how long it runs, and what happens at expiry. Automatic renewal that extends itself with no simple way to give notice is the clause that causes the most arguments. A reasonable term with the option to renew in writing is healthier for both sides.
When the commission falls due
As a rule on conclusion of the deal — that is, when the offer is accepted and the parties are bound — and not at completion. This surprises people most often, because weeks or months pass between the two moments. Some mandates set a later payment date: if that is what you want, it has to be written.
The other thing to look at is what the commission covers. Professional photographs, translating the listing into German, publication on the portals, handling viewings, collecting and checking documents, support through to registration: if they are included, say so; if they are not, you know beforehand.
In short
- The mandate must be written and state price, term and commission
- The agency must be registered with the Chamber of Commerce
- Exclusivity: negotiate the term, not the principle
- Beware automatic renewal without a simple notice clause
- Commission normally falls due on acceptance of the offer
- Have it listed in writing what the commission covers
The questions we are asked most
Can I instruct more than one agency?
Yes, if you have not signed an exclusive mandate. But consider the effect on the market: the same property appearing several times, often at different prices, reads as a property that will not sell. If you take that route, at least insist that price and photographs are identical everywhere.
If I find the buyer myself, do I still pay?
It depends how the mandate is written: some exclusive mandates provide for commission in that case too, others do not. It is one of the two or three clauses worth stopping to read, and worth discussing before you sign.
Do I have to sign a mandate to get the valuation?
Not with us. The valuation is free, written and separate from any mandate: you can receive it, read it and decide to do nothing. An agency that ties the valuation to a signature is selling the signature, not the 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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Would you like to know what your property is worth?
The valuation is free and reasoned: you get the figures and the thinking behind them, with no obligation and no mandate to sign.
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