A sales mandate is a written agreement between you as a homeowner and a real estate agent, in which you authorize the agent to sell your property. It sets out the terms regarding the duration, the commission, the agent’s authority, and the conditions under which the agreement ends. Anyone looking to sell a home would be wise to read this agreement carefully before signing. In this article, we answer the most frequently asked questions about the sales mandate.
What are the key components of a sales mandate?
A sales mandate must include at minimum the following elements: the identity of both parties, a description of the property, the asking price, the commission, the duration of the mandate, and the termination terms. Together, these components form the foundation of the working relationship between you and the agent.
In addition to this basic information, a sales mandate typically also includes agreements about:
- The marketing strategy — which channels the agent will use to promote your property
- The presentation — whether professional photography, floor plans, and listing copy are included
- The agent’s authority — can they negotiate independently, or do you have final say on every offer?
- Liability — what happens if something goes wrong during the sales process?
- General terms and conditions — most agents apply standard terms that govern the mandate
Read each section carefully. Vague language about the agent’s authority or unclear cost agreements can lead to disputes down the line.
How is the commission determined in a sales mandate?
The commission is the amount you pay the agent upon a successful sale. In the Netherlands, commission is typically expressed as a percentage of the sale price, and this percentage is freely negotiable. There is no legally fixed rate.
In practice, selling agents commonly charge between 1% and 2% of the sale price, excluding VAT. Some agents work with a fixed fee instead of a percentage. Which option works out better depends on the expected sale price and the services included.
When reviewing the commission, pay attention to the following:
- Is the commission inclusive or exclusive of VAT? In the Netherlands, a 21% VAT rate applies to agent commissions.
- What exactly is covered by the commission? Photography, advertising costs, and drafting the purchase agreement are not always included.
- Does the commission apply even if the property isn’t sold? Some mandates include a cancellation fee if you terminate the agreement early.
Compare multiple quotes before making a decision. The cheapest agent isn’t always the best choice if it means losing out on services that can make a real difference in the sale.
How long does a sales mandate typically last?
A sales mandate generally runs for three to twelve months, depending on what you agree with the agent. In practice, a six-month period is a common starting point, which can be extended if the property has not yet been sold.
The actual time it takes to sell depends on factors such as the property’s location, the asking price, the condition of the property, and current market conditions. In a competitive market like Amsterdam, a property can sometimes find a buyer within weeks. In quieter regions or at a higher asking price, it may take considerably longer.
Tip: Agree in the sales mandate on what happens if the property has not sold by the end of the term. Does the mandate renew automatically, or does it expire by default? Clarifying this upfront prevents confusion later on.
Can you terminate a sales mandate early?
Yes, in most cases you can terminate a sales mandate early, but there may be costs involved. The exact terms are set out in the mandate itself and in the agent’s general terms and conditions.
Many agents require a notice period of one to four weeks. If the agent has already carried out active work — such as organizing viewings or conducting negotiations — they may be entitled to compensation for those efforts. In some cases, the full commission may apply if a prospective buyer introduced by the agent was already in the picture at the time of termination.
When terminating, always check:
- Which notice period applies
- Whether a cancellation fee is applicable
- What happens to any ongoing negotiations or prospective buyers the agent has introduced
Always terminate the mandate in writing and keep a confirmation from the agent.
What is the difference between an exclusive and a non-exclusive sales mandate?
With an exclusive sales mandate, you give one agent the sole right to sell your property. With a non-exclusive mandate, you are free to engage multiple agents at the same time or actively seek buyers yourself.
Exclusive sales mandate
The agent knows they are the only one selling the property. This gives them greater security and, as a result, more motivation to commit fully to the sale. Exclusive mandates often come with a more comprehensive marketing strategy. The downside is that you have less flexibility as a seller if you are unhappy with the approach.
Non-exclusive sales mandate
You retain more freedom and can have multiple parties working on the sale simultaneously. However, this also has drawbacks: agents invest less when they know they could lose the mandate to a competitor. There can also be disputes about which agent is entitled to the commission when multiple parties are involved.
In most cases, an exclusive mandate with a high-performing agent delivers a better selling experience than engaging multiple parties at the same time.
What should you pay close attention to before signing a sales mandate?
Before signing a sales mandate, there are several points that deserve extra attention. A signature is easy to put down, but the consequences can be long-lasting if the mandate contains unclear terms.
Pay particular attention to the following:
- The post-termination clause — this stipulates that the agent retains the right to commission if a buyer they introduced goes on to purchase the property after the mandate has ended. Check how long this period lasts.
- What is exactly included — ask for a detailed description of all services covered by the commission
- The asking price and sales strategy — do you agree with the proposed asking price and the way the property will be presented?
- The limitation of liability — most agents limit their liability to the amount of the commission or the amount covered by their insurance
- The complaints procedure — how do you file a complaint if you are dissatisfied, and within what timeframe?
Take the time to read both the mandate and the accompanying general terms and conditions. If anything is unclear, ask for clarification before you sign.
How we help you sell your home
At Urban Homies, we guide you from start to finish through the process of selling your home. We start with a property valuation and a thorough analysis of market conditions, so that together we can determine a realistic asking price and a targeted sales strategy. We then ensure a strong presentation with professional photography and a tailored listing.
What you can expect from us:
- Personal contact with a dedicated advisor throughout the entire process
- Transparent agreements on commission, duration, and termination
- Support during negotiations and with the purchase agreement
- Aftercare following the signing at the notary
Want to find out what we can do for you? Get in touch with us for a no-obligation conversation about selling your home.
