Property sales mandate

A mandate to sell is a bilateral contract between the seller, the owner of a property, and a real estate professional to whom the seller entrusts his/her property for sale. It contains in particular the identity of the parties, the description of the property, the price, the remuneration and the duration of the contract. It can also provide details of the commercialization conditions.

Like any contract, it implies reciprocal commitments:

The owner guarantees that he/she has the right to sell his/her property and to entrust a mandate to sell to a professional and he/she must communicate all useful information for the marketing of his/her property and declare that this information is accurate.
The authorized representative will do everything possible to find a buyer in accordance with the conditions set out in the mandate.

Whereas it is mandatory in many countries, it is not yet imposed in the Principality of Monaco, even though it is highly recommended. Indeed, in practice, it gives a legal frame and precise the relationship between the seller and his/her authorized representative in order to avoid any subsequent conflict. Thus, the authorized representative will be able to carry out the mission granted with total peace of mind.

Several types of sales mandate exist and depending on the form chosen, they entail different obligations.

Type of sales mandate	Definition	+	-
Simple	The seller remains completely free to entrust the sale of his/her property simultaneously to several authorized representatives, or to sell it directly. Only the authorized representative who connected the seller and the buyer, and who initiated and carried out the negotiations, will finally be remunerated.	Possibility for the seller to deal directly or with several authorized representatives of his/her choice.	Loss of control over the marketing of the property (risk of disparate information between authorized representatives, over-media coverage of the property). Risk of later conflicts between authorized representatives. Limited involvement of authorized representatives.
Exclusive	The authorized representative appointed by the seller is the only one able to commercialize the property. All requests concerning the property will be addressed to him.	Greater financial investment, particularly in advertising developed by the authorized representative. Human investment with a fully dedicated and more motivated team. A climate of trust for the authorized representative who can work efficiently and fearlessly, particularly with regard to the disclosure of information relating to the property to other intermediaries or advisors. A single point of contact for the seller who centralizes all requests and visits and has full control over the information relating to the property. Efficient media strategy for the property.	Essential choice of the sole representative. Lack of freedom for the seller. Market research can be more limited.
Co-exclusive	This is the same principle as the exclusive mandate but this exclusivity is shared between two or more authorized representatives. The conditions for sharing remuneration will be agreed between the representatives.	Same advantages as for the exclusive mandate.	Same disadvantages as for the exclusive mandate. Risk of tension between the authorized representatives.

In the very special village that Monaco represents, the supply is extremely limited despite the considerable number of professional players acting on the marketplace. The exclusive or co-exclusive mandate to sale then appear to make perfect sense for the following reasons:

Market research is qualitative and not quantitative. The number of potential buyers is limited due to the amount of the price and a real strategy must be defined in order to avoid over-mediatizing and popularizing the property in the media. Especially since the media and prescribers used are very few in number, contrary to large countries.
Considering the value of the properties advertised, the marketing must be of high quality. This requires a slick product presentation as well as a perfect knowledge of the property. A filtering of prospects must also be ensured.
The vast majority of transactions are carried out in collaboration with other players of the market. This means that all the players, even without a mandate to sale, can still propose the property to their clients. Moreover, the authorized representatives protected by their mandate to sale will have no fear of disclosing to the competitors the requested information necessary for a potential association.

Valeri Agency is perfectly familiar with this very special environment and takes part very regularly in real estate transactions. If you are planning to sell your estate or if you simply wish to find out more about the value of your residential or commercial property, our agency is at your disposal to assist you.

Newsletter