To formalise an agreement between a real estate professional and an individual - or a company - looking for a property, the search mandate is an essential document.

A contract with a professional

Finding the ideal property when you want to become a homeowner, change your main residence or buy a second home is often a daunting task. Contacting a real estate agent or broker can generally avoid many pitfalls... and a few grey hairs. This involves signing a contract: the search mandate.

In fact, the search mandate is to the buyer what the sale mandate is to the seller. The search mandate is therefore the opposite of the sale mandate. It governs the relationship between the individual or legal entity - the principal - and the real estate transaction professional - the agent. 

What the search mandate includes

Not all search mandates are alike. The contract stipulates the powers delegated to the real estate (or other) agent to proceed with the acquisition of a property. The conditions for exercising this mandate, as well as the costs charged to the principal, including the amount of the fee, must be specified in the contract. The commission may be fixed or depend on the purchase price. However, it is only payable once the final deed of sale has been signed.

For his part, the agent undertakes to look for a property that complies in every respect with the principal's requests. His professional responsibility also imposes a duty to inform and advise. It is also the agent's responsibility to provide for suspensive clauses and to check the "determining factors".

On the buyer's side, if you have signed a search mandate, it is of course out of the question to then deal directly with the seller. The real estate professional could then claim damages well in excess of his commission.