The MLS "Marketing Authority" Contract

Many Bloemfontein agents will take extreme measures simply to get a client to sign their exclusive sole mandate contract. However, the public should read these documentations before putting pen to paper. What may seem like just 'some paperwork' could be a binding 3 month sole mandate contract. MLS currently holds an exclusive sole mandate

form that reads "Exclusive Marketing Authority".

 

Should I Sign This Document?

Yes, of course you may sign the MLS Marketing Authority form if you wish to give only agents in the MLS group the right to market your property. Remember, by signing this document you are agreeing to give MLS an exclusive sole mandate. No matter what the agent tells you. The heading of the contract will look like the image below:

If the agent presenting the contract to you doesn't inform you what you are signing for (an exclusive sole mandate) the contract will not be valid as both the Consumer Protection Act and the EAAB's Code Of Conduct will come into play.

The Consumer Protection Act

Consumer Protection ActWe all know that a contract is not binding if the party signing the contract is under the influence of alcohol, forced to sign, declared insane or under aged. However, the CPA (Consumer Protection Act) clearly mentions that the party should be well informed and understand completely what he/she is signing / agreeing upon for (Page 12 - Consumer Right No 4 - Right To Disclosure Of Information).

 

EAAB's Code Of Conduct For Estate Agents

EAAB - Code Of ConductFurthermore, the EAAB (Estate Agency Affairs Board) has compiled a "Code Of Conduct For Estate Agents" where it clearly describes (Clause 5.5.2) that agents/agencies should be honest and ethical in dealing with the consumer/public. If an agent/agency is founded not adhering to the Code Of Conduct For Estate Agents the agent/agency can lose their license to practice real estate duties.

 

So, Can ALL THE AGENTS In Bloemfontein Market My Property?

This is a simple NO! Only agents listed with the MLS group in Bloemfontein will be able to market your property. No other agency may market the property unless they contact an MLS agent first to introduce the property to their client. So in short: No, not all the agents in Bloemfontein can market your property once you sign the MLS "Marketing Authority" contract. No matter what the agent tells you. Period.

Conclusion

There is nothing wrong with giving an MLS firm an exclusive sole mandate. Just make sure that you read and understand the contract before you put pen to paper. Remember, you are not under any circumstances obliged to sign such a document. And if you do, you must receive a copy of that contract/document within 24 hours.