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 Mandate

Definition

The mandate provides the legal basis that allows a manager to manage property belonging to someone else. The master data of the mandate contains all data of the agreement between the property owner and real estate manager, including the owner’s data and bank details.

You enter the objects under third-party management in a separate company code based on the mandate. You use a separate company code for each owner or condominium owners’ association (COA) .

Use

You use a separate company code for each mandate that has been granted, including all of the real estate objects and processes associated with the mandate (see Creating the Mandate Company Code ). You enter the real estate objects that you manage in business entities in this company code. The mandate (and the mandate company code) thereby provides the basis for separation of assets between the owner and the manager, and supports the creation of separate financial statements.

Structure

  • Object Mandate:

    An object mandate is used for managing land or buildings that belong to an owner as a whole. The owner in this case can also be understood as a group of owners, such as joint heirs, but does not include condominium owners’ associations. Object mandate management is basically property management or third-party management without including condominium owners’ association management.

    For more information, see Object Mandate .

  • COA Mandate:

    You use a COA mandate to manage an object that belongs to a condominium owners’ association (COA). The object consists of two parts: the condominiums owned by the individual condominium owners, and common property shared by all owners. The condominium owners’ association grants the manager the mandate for managing this common property, and thereby charges the manager with representing the interests of the condominium owners’ association, including performing COA settlement.

    For more information, see Condominium Owners’ Association (COA) .

Object mandates and COA mandates use different number ranges.

Mandates with the same reference company code use the same controlling area.

Example

For examples, see Example: Third-Party Management .