The best of an Estate Agent to earn commission is enshrined in common law. In general, commission is due once the Estate Agent has execute a client’s mandate, regardless of timeframe or effort it took to do the mandate.
In South Africa, there is no limit to the amount of commission an Estate Agent can charge. In top of the end of the market, this often results in impressive earnings. These facts, combined with public perception that an Estate Agent is usually seen to complete very little in comparison to the handsome rewards received, has encouraged lots of people to join the Estate Agency industry. estate agents Tarporley Finally count there were more than 72,000 Estate Agents registered in South Africa. Although, in practise, not absolutely all are actively working as Estate Agents. Many Estate Agents are active only once the property market is buoyant and go dormant when the market slows down. Nevertheless, they are qualified to act as Estate Agents and may resume activity each time they feel, with the provision which they adhere to the requirements of the Estate Agencies Affairs Act.
Giving rise to commission dispute
Before we go on, it must be noted that most property deals undergo without dispute. However, this does not imply that of the deals that undergo there is no reason behind dispute. Simply not knowing is usually a reason for valid claims not being made, mostly privately of the client. For such cases there is nothing one can do in retrospect, since all wrongs committed by Estate Agents are automatically made right upon date of transfer. You should not repent or visit confession, all sins are simply magically wiped away.
Typically commission disputes arise simply consequently of misconception by the public as to their rights and duties when they offer an Estate Agent a mandate. However, dispute also arises as a result of misconception of Estate Agents as to their rights and duties in performing a client’s mandate. Both forms of misconception may be easily avoided if Estate Agents take more time being “frank” about discussing commission before accepting a mandate. In practise, this does not at all times happen, whether due to forgetfulness, insufficient diligence or due to pressure to have the mandate. Discussion surrounding commission is usually relegated to a mandate form, placed facing the client with the expectation of signing. This document merely serves to capture the essential details and rarely elaborates on definition of terms, rights or duties at length.
While it is sound business practise to record in writing the amount of commission and under what circumstances the mandate will soon be considered fulfilled, some mandates omit small points that aren’t in the Estate Agency favour or the document itself serves to cover “conditions of absence in agreement” covered by common law. As an example, under common law, in the absence of an agreement to the contrary, an Estate Agent isn’t entitled to commission simply because, over a time period, there is a conscientious effort to carry out a clients mandate.