Regulation 34.3.1 issued in terms of the Practitioners Act 22 of 2019 regulates the requirements for a sole and exclusive mandate.
According to the Act, a sole mandate must be a written agreement, signed by the seller, and include the expiry date of the mandate. The estate agent is also required to explain the legal implications of the mandate to the seller and must be in possession of a valid Fidelity Fund Certificate issued by the PPRA.
The Act also stipulates that the mandate must include the scope of services to be rendered by the estate agent, the type and duration of the mandate, and all terms relevant to the mandate such as the purchase price, estate agent’s commission, and any other specific terms applicable to the mandate. Failure to adhere to this will result in a voidable mandate that can be cancelled by the seller at any time.
Property Professionals should be vigilant in this regard.