Mistakes to Avoid When Delegating Mandates Between Agencies

Mistakes to Avoid When Delegating Mandates Between Agencies

The delegation of mandates between real estate agencies represents an opportunity to develop fruitful partnerships, but it also brings its share of challenges. When poorly managed, this collaboration can lead to costly mistakes, compromising mission success and customer satisfaction. In this article, we will identify the most common mistakes that agencies should avoid to ensure smooth management and optimal results. Whether you are a delegating or delegated agency, these errors can have a significant impact on the quality of your service and your professional relationships.

1. Lack of transparent communication

Communication of the fundamental pillars of successful collaboration. When delegating a mandate, agencies must regularly exchange information on the progress of visits, customer feedback, offers received and negotiations.

Common mistake : Not communicating regularly or transparently. Some agencies believe that their partners can guess the progress of actions or do not see the point of communicating at each stage of the process. This can lead to misunderstandings, delays and inefficiencies in the management of the property.

Solution : Make sure communication is fluid and regular. Use collaborative tools and tracking systems to update all relevant information related to the property and prospects in real time. Consider establishing a communications schedule with weekly or biweekly check-ins.

2. Neglecting roles and responsibilities

One of the major mistakes when delegating a mandate is not clearly defining the roles and responsibilities of each agency from the start of the collaboration. This can create gray areas, overlapping tasks, or even conflicts over who is responsible for what.

Common mistake : Agencies do not take the time to clarify what they expect from each other. For example, the delegated agency could take charge of aspects that it does not control or should not do, while the delegating agency could neglect to supervise the implementation of the mandate.

Solution : Establish a clear contract that defines the responsibilities of each party. Every agency needs to know what it is expected to do at each stage of the process, whether in terms of marketing, negotiation or client follow-up. Clarity of roles allows collaboration to be better managed and avoids confusion.

3. Forgetting to formalize the agreement in writing

Although delegation of mandate is common practice, it is essential to formalize the agreement in writing to avoid any ambiguity in the event of disagreement. Some agencies neglect this step and rely solely on a verbal agreement, which can lead to misunderstandings and conflicts.

Common error : The absence of a written contract or the drafting of a contract that is too vague. Without a clear legal framework, it becomes difficult to enforce the commitments of each party, particularly with regard to the distribution of fees or the management of visits.

Solution : Write a detailed contract that stipulates the conditions of the collaboration: the obligations of each agency, expectations in terms of communication, the distribution of commissions and, if applicable, the duration of the agreement. This document must be signed by both agencies before beginning any collaboration to secure the professional relationship.

4. Poor management of fees and commissions

One of the most sensitive questions in a delegation of mandate concerns the distribution of fees . Poor management of this distribution can damage the relationship between agencies and cause unnecessary tension.

Common mistake : Not clearly defining how fees will be shared. This can lead to disputes in the event of a sale or rental of the property, particularly if both agencies consider themselves to have played a key role in the success of the transaction.

Solution : Define in advance, explicitly and transparently, how fees will be distributed between agencies. This can be a fixed percentage, a sharing according to the tasks carried out, or according to the role played in the conclusion of the deal. Make sure that all parties agree and that this is included in the mandate contract.

5. Ignoring the specifics of the property

When delegating a mandate, each property is unique. It is important to fully understand the characteristics of the property you are selling or renting, in order to better target potential buyers or tenants.

Frequent error : Not sufficiently informing the delegated agency about the specifics of the property (type of property, estimated value, condition, etc.). The delegated agency could therefore not adopt the right approach to promote the property or not target the right prospects.

Solution : Make sure you provide the delegated agency with all the necessary information about the property. This includes quality photos, details of specific features and the history of the property, so that the delegated agency can promote it effectively and respond accurately to the requests of potential buyers.

6. Neglecting the relationship with the owner

The relationship with the owner is at the heart of any delegation of mandate. Not keeping the owner informed of the progress of the sale or rental can compromise the collaboration.

Common error : The delegating agency does not put the owner in contact with the delegated agency or does not regularly communicate information on the progress of the transaction.

Solution : Keep an open line of communication with the owner. Even if it is the delegated agency that conducts the visits and negotiates the offers, the delegating agency must keep the owner informed of the visits carried out, the feedback from buyers and the offers received. This will strengthen the owner's trust in the agency and ensure harmonious collaboration.

7. Underestimate the importance of follow-up

Monitoring component of mandate delegation. Once the mandate is delegated to another agency, it is easy to relax and neglect monitoring the actions undertaken.

Common error : Not regularly monitoring the actions of the delegated agency. If the delegating agency does not verify that actions are carried out correctly, it can lead to unsatisfactory results and a slower or less profitable sale.

Solution : Make sure to regularly monitor the progress of the delegation of mandate. This includes checking online ads, managing visits and communicating with prospects. If necessary, adjust strategies or sales approach to maximize the chance of success.

8. Do not anticipate the termination of the mandate

It is possible that a mandate may be terminated during the collaboration. Ignoring this possibility or not providing for termination terms is a common mistake.

Common mistake : Not including termination clauses in the contract. If the collaboration must end, it is important to know how this should happen, what the financial consequences are and the obligations of the parties.

Solution : Include a termination clause in the mandate contract, which stipulates the conditions and terms of termination, as well as the consequences on fees and commissions. This helps avoid disagreements if the agreement is broken.

In summary, to ensure successful delegation of mandate, it is imperative to avoid certain common mistakes that can compromise the quality of collaboration between agencies. Regular and transparent communication, formalization of the agreement, clear management of fees and a relationship of trust with the owner are key elements for smooth management of the mission. By paying attention to these aspects, agencies can maximize their chances of success and provide a quality experience to their clients.