A Property24 reader asks:
A Property24 reader says she has decided not to sell her property and asks how and what the implications are if she cancels.
I have a sole mandate on my property which I wish to cancel as I have decided not to sell my property anymore. The agreement was signed on the 2 April 2014.
Please can you advise on how to cancel this and what the implications will be.
Jaco Rademeyer, from Jaco Rademeyer Estates, responds:
A mandate (instruction) need not be in writing, it can be given verbally. However, a sole mandate must be in writing.
A sole mandate (also called a sole agency) is a contract between an estate agent and a principal (seller) whereby the principal agrees, firstly, to appoint that specific estate agent to sell his property and, secondly, not to appoint another estate agent to sell his property until the period for which the sole mandate has been given has expired.
When you sign a contract or a mandate you are legally bound to the terms of the contract, or as in this case, the mandate.This does not mean that you cannot withdraw the instruction, there are, however, certain penalties that may occur when you withdraw your mandate. The seller, however, needs to first check the terms of the written sole mandate agreement.
If an estate agent has been given an irrevocable mandate for a certain period the principal commits breach of contract should he revoke the mandate unlawfully before the expiry date thereof.
Mere appointment as a sole agent does not mean the mandate is irrevocable. If it was agreed that the mandate would be irrevocable for a certain period the principal would be liable for any damages suffered by the agent if he unlawfully revokes the mandate. A mandate which is not stated to be irrevocable can be cancelled without notice by the person who conferred the mandate.
Sole mandate forms normally used by estate agents invariably stipulate that the sole mandate is irrevocable for a certain period. This means that during the course of the mandate the principal is not entitled to sell through another estate agent, and may not revoke the sole mandate and/or then sell through another estate agent, without being liable to pay damages to the estate agent or first estate agent.
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