Sole Mandates
The entire project is aimed to help agents dominate the area via Sole Mandates…
This is the most IMPORTANT focus point.
The principal will later explain to the agents just WHY the Homecare team MUST ensure that the agents onboard remain in the industry… In short, the team employed by the Homecare Board who are tasked to help Child Protection Branches and Caretakers of Bedridden patients are paid out of donations we receive from the principals…
We can therefore not allow that the principals do not make profit due to opposition outselling them…
Relying on Open Mandates is a HUGE Gamble...
The most important contract that can protect the agents is the Sole Mandate Contract… We need to protect the cash-flow of the company and this will only be possible when the team negotiate the correct Sole Mandates.
We recommend to the principals that a specialize team of agents should be trained to negotiate these mandates…
We also provide training on the selection of properties for Sole Mandate purposes.
In Short:
The objective is to negotiate a 6-month Sole Mandate on a property… Most agents negotiate 3 months and often homeowners only allow 30 days.
We train agents not to commit that the agency will sell the Sole Mandate… We only commit to manage and reduce business risks, in order to help the homeowner, get as much as possible.
Remember that we train agents to sell the entire team… With regards to Sole Mandates, the Conveyance Administrator should be sold.
There are a few closing lines that agents will learn about. One argument that agents must talk about is the risk of selling a property, where the property eventually does not transfer into the buyer’s name… It happened that a homeowner sold his property via an agent and after 4 months, the entire process to market the property started all over.
Agents should point out that the property might be sold to a person who already sold his property and that funds out of the previous transaction is required to ensure that this transaction can register…
The problem is that the agent never knew that this transaction is only one of several transactions that needs to line up. We were involved where more than 8 transactions were linked to each other.
We train agents to negotiate a 6-month Sole Mandate with special clauses in the contracts.
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During the first month, the property will be marketed by the agency alone at the asking price the homeowner requested if he/she was not willing to drop the price to the suggested price the agency recommend.
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The second month, still agency alone at a marketing price between what client wanted and what agency recommended
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Third month, agency alone at suggested price.
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Fourth month, Principal invite one opposition company, already predetermined to help market the property at 50% commission split. Principal will on a specific date invite other principal formally via telephone conversation and e-mail, where homeowner will be included in mail.
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Fifth month, Principal invite two additional agencies, bringing the group to four companies marketing the property. Agency will keep 25% of commission and opposition will receive 75% of commission if they sell property during that month.
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Sixth month, Principal invite two additional agencies, bringing the group to six companies marketing the property. Agency will keep 10% of commission and opposition will receive 90% of commission if they sell property during that month.
With these negotiations, the agents explain that the Conveyance Administrator is involved in helping the homeowners.
One of the clauses states that there will be no client that will be introduced to the property without a pre-approved bond certificate.
Furthermore, clients that want to buy the property on the condition that the client’s property must be conveyed into another person’s name will not immediately sign an Offer to Purchase document. They are instructed to sign an Option to Purchase document and the Offer to Purchase will only be signed after the Conveyance Administrator had time to follow up with all the attorneys involved on transactions lower on the ladder.
The Conveyance Administrator will provide a written document after he/she was able to confirm with all the Attorneys involved in all the transactions that are linked to the client that it will be safe to sign the Offer to Purchase document.
The homeowner must know that risks involved in marketing his/her property will be managed. More detail will be supplied to the Stock Controllers.
Suzaan Le Roux
Conveyance Administrator
Support from Homecare Stock Controllers
Agents will be able to offer additional support to homeowners when they negotiate Sole Mandates.
Agents will at the ned of the website read that we expect from an agent to purchase at least R1 500 of his/her personal groceries via the Extra Grocery platform. Agents do not donate, they only purchase groceries via the platform… more detail later.
When the Homecare team provided the property, we expect that the agent will donate 5% of the commission. This is compulsory.
We however want to ensure that the agents succeed in the Sole Mandate Negotiation.
Agents will be allowed to inform the homeowner that the company decided to involve the Homecare team in marketing the Sole Mandate. The involvement requires that the agency will donate 15% of the commission on the transaction towards the Homecare Foundation.
The Homecare team provide services to earn at least 5% on properties that went on Sole Mandate structures. We help agents to secure a safer working environment. If we supply the property and it goes onto a Sole Mandate, we negotiate 5%. This will be the maximum donation we negotiate. The Homecare team will pay the 10% commission out towards the agent by loading the agent’s grocery gift cards with the amount due.
We already mentioned how important the agency is to the Homecare Board. We need stability within the principal’s team.
The Homecare team will raise more than R55 million per month out of other income streams, thus allowing agents to get the 10% out of the transaction is in our view worth the effort.
The Sole Mandate agent will during the negotiation inform the homeowners that the Homecare Stock Controllers will mail the homeowner after they received the photos of the property.
The Homecare Stock Controller will after he/she received the photos, mail the homeowner and thank him/her for allowing the agent the Sole Mandate. We will thank them for the opportunity to enable the Homecare Foundation a possible donation.
We will notify the homeowner that we will ask the companies in our network if they perhaps know about any person that might be interested in the Sole Mandate. This include all the companies that work in the property section. (Building companies etcetera)
The extra effort will help the agents to secure the Sole Mandates with ease.
It will be the weapon that will ultimately abolish the enemy!
