Market intelligence: ​Essential must-know about a search mandate

Using a property finder to help you find your perfect home can save you time and provide access to the increasing number of off-market houses. Here we take a look at why and how you might sign a search mandate with us.

First, know the difference between signing an exclusive search mandate and a simple mandate, and to understand your obligations before you sign the contract.

Unlike a simple mandate, a search mandate is a contract by which you, the buyer, entrusts an agent or property finder with finding you the type of property you want, whether it is a five-bedroom chalet in Crans-Montana or a penthouse apartment in Geneva.

Why use a search mandate?

Because you have tasked someone to find you a specific property, to do the legwork, this will save you time. We will eliminate anything that doesn’t suit your brief. We can also respond very promptly, ensuring you won’t miss out in fast-moving markets.

Because we have great contacts, we will be able to use them to source properties that are being sold off-market – and that is a much larger proportion of homes than it used to be.

Another advantage is that you will have someone who knows you well enough to anticipate your actions – whether that’s making an offer on a property or requesting follow-ups. It might mean suggesting a property you might not have considered – but might suit you best of all.

From commission to sale: a search mandate

What begins with the signing of the contract should hopefully end with us handing you the keys to your dream home.

First we will research. On the basis of your brief we will scour the market for properties corresponding to your criteria. This includes agent websites, portals, social media and good old networking with professional partners and potential vendors.

We will also arrange your visits to see properties once we have vetted them. We will make all best efforts to find you the ideal property.

To ensure that your efforts in searching are not in vain, most mandates require the buyer to provide a financing certificate, reassuring us that you are financially capable of making an offer when the time comes.

We are bound to provide you with all the information which will allow you to make an offer in full knowledge of the facts. If we fail to provide you with any salient information that is relevant to your requirements then we could be in breach of this obligation.

If you wish to put in an offer, we will advise you how to pitch this and handle the negotiation. Once an offer is accepted, we will handle the purchase process, any queries on the legal or structural side, searches, through to signing of the deeds.

What about fees?

Like any contract, a search mandate commits both parties and it is important to know your obligations before signing one.

If we find you the perfect property within the framework of the mandate, you will have to pay the fees set out in the mandate when you complete the purchase. Conversely, if we fail to find you a property at the end of the mandate, you will not owe us anything.

A couple of things to note. Most search mandates specify that the fees are due if you buy a property that has been identified during the validity of the mandate, regardless of whether the mandate ended because it had expired or was terminated.

How long is a mandate? This might be three months to a year depending on how pressing is your search. The timeline can vary, the contract should set out how a mandate is renewed or revoked.

Your obligations as the buyer

To capitalise on the services of a property finder, you should ensure you are reactive, available and transparent. There is no point of your agent securing the first viewing on a home if you cannot visit it for a week, or you do not respond to calls during a bidding war.

Equally, you cannot expect your agent to find you the perfect home unless you convey to them accurately what it is you want, including any pet hates or ‘red flags’. Your ‘do not want’ list is as important – perhaps more so – than your ‘wishlist’. Being flexible to suggestions as your search progresses is key to finding the ideal property.

Conclusion

In summary, the search mandate offers several benefits:

• Efficient Search: The buyer saves time and effort as the agent conducts research and pre-checks properties, eliminating unnecessary viewings.
• Access to Exclusive Properties: The buyer can explore off-market properties not found on public websites or portals, including upcoming listings.
• Expert Advice: The agent provides valuable insights, suggesting options and assessing the suitability and potential risks of properties.

Should you wish to find out more about the search mandate please contact one of our team experts who will be able to assist further in finding your dream home.