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24/11/2020 | Sell my property

The different sales mandates: what you need to know before to sign

The different sales mandates: what you need to know before to sign

A sales mandate is a contract signed between a real estate agent and an owner. This contract sets out in writing the obligations and rights of each one of the parties for the transaction and specifies the steps taken by the real estate agent in order to sell the property. Note that Swiss law does not require any written contract, although this is still widely recommended and practiced because oral agreements can lead to unpleasant surprises. In Switzerland, there are several types of sales mandates. The two main ones being the simple mandate and the exclusive mandate. We will present them to you with their advantages and disadvantages. The seller obviously chooses the one that best suits his needs.

The simple sale mandate

You’re entrusting your property to a real estate agent (or a real estate agency) but isn’t giving him/her exclusive rights. You’re keeping the possibility of mandating other agents to sell it. By not putting all of your eggs in one basket, you’re increasing your chances of selling quickly. The advantage of such a contract is that you are not dependent on a single agent. The downside is that the agent does not have the exclusivity of the sale, he will perhaps not put all his energy in the sale of your property since he is not alone in the business and is not sure, therefore, to receive remuneration for his work. Moreover, your property will likely be presented differently by several agents. This can cause it to lose credibility and its selling price may ultimately decrease.

The exclusive sale mandate

In the case of an exclusive mandate, you’re entrusting the sale of your real estate to a single agent and you’re not keeping the right to sell it yourself if you find a buyer, except by agreement decided with your agent and specified in the sale mandate. The advantage of such a mandate is that the agent is alone on the sale of your property for a time that will have been determined in advance (a few weeks / months / 6 months renewable from 3 months to 3 months) and that he/she will therefore put all his/her resources and energy on this deal in order to find a buyer as quickly as possible. The downside is that this mandate binds you to a real estate agent for a period of time without you being able to act if you realize that things are not going well or if you are not satisfied.

Two missions: finding a buyer and negotiating 

For a real estate agent, the first mission is to find a buyer for your property. He is therefore responsible for promoting your property to leads and possibly organize visits. The other mission is to conduct negotiations with potential buyers so that you get the best price for your property and to accompany you until the deed is signed at the notary. In most cases a real estate agent performs both functions.

The real estate agent’s commission

This is the commission he/she will get for the work he/she did when he/she sold your property. It corresponds to a certain percentage which depends on the sale price of the property. Swiss law does not define this percentage. This is a crucial element that must be clearly defined in the sales mandate.

Take the time to read your contract

The contract between you and the agent must be carefully drafted. The two parties must decide on the essential elements of the contract: what exactly will the agent do (indicator agent or negociator agent, in general both), what will the amount of remuneration be in the event of a sale and how long will the mandate be. As stated above, there is no legal requirement for a written contract but it is highly recommended. Should it be pointed out that a mandate contract cannot be drawn up and signed on the back of an envelope?… It deserves your full attention. Take the time to read and read it again to avoid any further litigation.

Take advantage of our network of partner agents to sell with confidence

Lookmove works with experienced real estate professionals rooted in their territory. We have chosen them for their ability to provide sellers (and buyers) with high quality services. Our partner real estate agents are trustworthy people who will put all their know-how at your disposal so that you can sell your property quickly and well.

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