Selling a property is a big decision. It’s an opportunity to build up a financial reserve, but it can also mean saying goodbye to a place full of memories or moving on to a new stage in your life. It’s a momentous occasion, with consequences and outcomes that affect the cash flow, peace of mind and lifestyle. All reasons that underline the need for proper support when selling a home. Here’s a guide to the essentials of selling a property in the best possible conditions, from how a sales mandate works to the different types of mandate.
How selling mandates work
Selling a property is a high-stakes exercise that often marks a decisive turning point in the lives of property owners. At the heart of this process is the mandat de vente, a legal document that seals the agreement between the seller and their agent, and is the contract around which the entire sales strategy is built. In France, this document is of the utmost importance as it sets out the terms and conditions of the collaboration, defining the rights and obligations of each party.
The elements that must appear in a sales mandate are
The full identity of the principal: the seller(s).
The full identity of the agent: he or she must hold a professional card, known as carte T.
A precise description of the property to be sold.
The sale price.
The agent’s fees and who pays them: the buyer or the seller.
The commission is usually a percentage of the sale price. It is around 5% but can vary from agency to agency.
The length of the mandate.
The professional’s obligations to sell the property.
The obligations of the client.
The type of mandate: exclusive, co-exclusive or simple.
The different types of sales mandate: advantages and disadvantages
The choice of selling mandate depends on the seller’s expectations and situation and is a strategic decision. To help you make the right choice, here are the 3 main types of mandate available to property owners in France.
The exclusive mandate
This is often the most efficient option. The exclusivity granted to a single estate agency guarantees that the agent will work hard to achieve the sale as quickly as possible, thanks to targeted marketing campaigns and a personalised sales strategy. The agency can invest more resources in promoting the property, knowing that it is the only one offering it for sale. However, this contract can be restrictive for the seller, who cannot approach other agencies or sell the property on their own during the term of the mandate. The exclusive mandate can be terminated after 3 months.
The co-exclusive mandate
This offers an interesting balance that allows the seller to retain a degree of freedom. This mandate allows the owner to sell the property directly, while working with a single estate agency. This gives the property greater exposure, while retaining the option of selling without an intermediary. However, this option can sometimes dilute the sales effort, as the agency may be less inclined to fully invest in marketing a property that could be sold without their intermediary.
The simple mandate
This option is characterised by its flexibility, allowing the vendor to increase the chances of selling by entrusting his property to several agencies. In theory, this diversity of agents increases the visibility of the property on the market. However, it can also lead to confusion among potential buyers, who may be confronted with several advertisements for the same property, sometimes at different prices. What’s more, this division of labour can reduce the individual commitment of the agents, each of whom is aware that the property may be sold by a competitor.
In simple terms, an exclusive mandate is recommended for a quick and controlled sale, a co-exclusive mandate is suitable for owners who wish to retain some personal flexibility, and a simple mandate is preferable to maximise the exposure of the property.
Selling your apartment or villa at the best price and under the best conditions requires thought and a good knowledge of the market. By choosing a mandate, the seller is making a strategic choice. But whichever option you choose, the key to a successful sale is to surround yourself with experienced, trustworthy professionals. Would you like advice on putting your property up for sale? Selling with Haussmann
