Property Practitioner Mandates – An Overview

A recent article on Business Tech outlined how the economic impact of the Covid-19 pandemic may actually open up the housing market for lower-income families to become first time homeowners. Interest rates have decreased, transfer duty is exempt for properties up to R1 million rand and for those still gainfully employed, procuring a bond may now finally be possible. 

Conversely, now may be just the right time to list your property if it is in the R500 000.00 – R1 500 000.00 segment to attract these potential first-time homeowners. Keep in mind, however, that you will need to be relatively negotiable with your price as the housing market has been directly affected by this pandemic resulting in a slowdown of activity in the housing sector. 

So, where do you start when selling your home?

The first step is often to contact an estate agent to view your home and help advise you regarding a suitable, market-related listing price. Estate agents are soon to be known as property practitioners in terms of the new Property Practitioners Act 22 of 2019 when it comes into effect on a date still to be proclaimed by the President. 

To instruct a property practitioner to list your home, you must enter into a written mandate with that property practitioner. It is important to note that there are a few different types of mandates that you can choose to enter into. 

  • Shared/Open Mandate: These mandates allow you to instruct any number of property practitioners to list, market and sell your property. 
  • Sole Mandate: With this mandate you may only instruct one property practitioner to list, market and sell your property. You may, however, still sell your own property unless the property practitioner also has an exclusive mandate.
  • Exclusive Mandate: With this mandate, only the property practitioner instructed may list, market and sell your home. You are also excluded from selling your own home during the period the exclusive mandate is in effect. 

Mandates are valid for a specific period of time as determined by the seller, for instance a period of 60 or 90 days. Deciding how many property practitioners to instruct to help sell your home is very important as you want to strike the right balance between attracting many qualified buyers quickly without over-exposing your property online. Generally, it is best to consider mandating between 1 to 3 property practitioners. 

As a member of 3%.com Properties, Yolanda Barnard Attorneys can assist in the listing, marketing, sale and transfer of your property. Our in-house Property Practitioner, Simoné Basson is ready to assist you for only 3% commission, plus VAT. Visit our 3%.com Properties tab for more information, to view our listings and to contact us for assistance.

Reference: https://businesstech.co.za/news/property/390699/this-is-how-much-you-will-pay-on-a-r500000-home-loan-in-south-africa-right-now/ (accessed 28/04/2020)