Question:
I recently made an offer to purchase a house and all that’s left for me to do is to sign with the lawyers.

However, I have now been told by another agent that she has a sole mandate and therefore the right to stop everything. The owner says she decided to sell through another agent as the agent with the sole mandate was delaying the sale of her house.

Can you please explain to me how this actually works and who has rights with regards to the house?

Answer:
Actually, the issue does not really involve you. If the seller signed a sole mandate with an agent, but then gave it to another agent who was successful then the seller is liable for two sales commissions.

This dispute will probably have to be arbitrated. Technically, the sole mandate that the seller signs has to list all the things that the agent will do to sell the home. For example, they would undertake to advertise the property in various publications and arrange for it to be a show house.

If the agent was remiss, say for example they did not do show days, market the home at the right price or advertise the property then he or she would be in breech. The owner would have the right to terminate the mandate if the conditions were not adhered to.

The owner would simply write a letter detailing why they were terminating the mandate. If the agent does not offer a counter argument then the seller would deem the mandate to be cancelled. It is, however, open to interpretation. If a seller wants to terminate a mandate they should register the letter or send an email and cc the dealer principal. It should include a response time. For instance, no response in a week will imply that the agent accepts the termination.

Unfortunately some mandates are rather skimpy on the facts and quite biased towards the agent. So, like any other legal document, one should read everything and add extra clauses if necessary.

That being said, your side of the deal is intact and the registration should go through as normal. If the agents draw you into the fray tell them you will be making an official complaint to the EEAB (Estate Agents Affairs Board). The agent with the sole mandate can sue the seller for commission, but they cannot stop the sale of the house.