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Mandate & Instructions

Applicable Legislation

Act Section What It Governs
Code of Conduct (PPA) §2 Must act in the best interest of the client; disclose conflicts of interest
Code of Conduct (PPA) §4 Mandate agreement must be in writing and signed before rendering services
PPA §48 Keep proper records of mandates and instructions
CPA §22 Written agreements must be in plain and understandable language
CPA §50 A franchise, lease, or long-term agreement may trigger cooling-off rights
CPA §16 Consumer has right to choose — cannot be forced into a sole mandate without understanding alternatives

✅ Compliance Checklist

  • Written mandate agreement is in place before any services are rendered (showing property, marketing, etc.)
  • Mandate clearly states:
  • ✅ Type of mandate (sole, open, multi-listing)
  • ✅ Duration of the mandate
  • ✅ Commission structure — percentage, flat fee, or both
  • ✅ What triggers commission (introduction of willing and able buyer, offer acceptance, or registration of transfer)
  • Mandate is in plain language — consumer can understand without legal training
  • Conflict of interest is disclosed in writing — e.g. if you or a family member have an interest in the property
  • Client is offered the choice between sole and open mandate — not pressured into a sole mandate
  • Mandate terms are explained to the client — including early-termination penalties if any
  • Copy of signed mandate is given to the client
  • Any variation to the mandate is in writing and signed by both parties
  • Dual agency (representing both buyer and seller) is disclosed and written consent obtained from both parties

❌ Prohibited Actions

  • ✗ Starting to market or show a property without a signed mandate
  • ✗ Oral mandates — must be written and signed
  • ✗ Extending a mandate unilaterally — only the client can instruct extension
  • ✗ Claiming commission on a "sole mandate" that was actually an open mandate — misrepresentation
  • ✗ Acting for both parties without both parties' written informed consent (Code of Conduct §2.2)
  • ✗ Undue pressure or influence to sign a mandate — CPA unconscionable conduct

⚠️ Warning Flags

  • "We have a gentleman's agreement" — oral mandates are not enforceable. Get it in writing.
  • Digital mandates: electronic signatures are valid under the Electronic Communications and Transactions Act, but you must ensure the signatory is who they claim to be (FICA cross-check).
  • Sole mandate auto-renewal clauses — must be prominently disclosed; the client must actively opt in, not be auto-renewed by default.
  • Multi-listing mandates — the client must understand that other agencies may also market the property and how commission is split.