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This warning comes from Berry Everitt, MD of the Chas Everitt International property group, who says some unscrupulous agents are now trying to bulldoze homebuyers into awarding mandates for the sale of their current homes.
"Some agents are now including a clause in sales agreements stating that if a buyer signs an offer to purchase on condition that his own property is sold, the agent will automatically be awarded a mandate to market that property.
Rental agreements
"In some cases the clause even states that the agent will hold the mandate for up to 180 days."
Everitt says in other instances, agents are inserting a clause in rental agreements to the effect that should the owner decide to sell the property, the rental agent managing the property is automatically appointed to market it.
The problem with this is that this practice denies you, the seller the right to deal with your property as you see fit. It interferes with your right to appoint an agent of your choice, based on that agent's marketing skills and resources. This is clearly contrary to the public interest, Everitt says.
Excessive mandates
"The duration of such mandates is also cause for concern. Mandates effective for a period of 180 days, for instance, are excessive, particularly when the consumer did not have a choice in the matter in the first place.
Moreover, many property transactions are concluded on the basis of buyers selling their existing properties to finance a new property.
Everitt stresses that although only a small proportion of agents employ these shady tactics, they are impugning the integrity of estate agents in general and harming the image of the industry.
He also advises consumers to scrutinise sales agreements closely and to insist that any forced mandate clauses are scrapped before you sign on the dotted line.