tiktok���˰�

The Real Estate Agent Commission Agreement is a crucial document in South African property transactions, establishing the professional relationship between property owners and registered property practitioners. This agreement becomes necessary whenever a property owner wishes to engage an estate agent to market and sell/lease their property. It must comply with the Property Practitioners Act 22 of 2019 and related regulations, which replaced the earlier Estate Agency Affairs Act. The document typically includes commission structures, marketing obligations, mandate duration, and mandatory disclosures. It protects both parties' interests by clearly defining commission triggers, payment terms, and service expectations, while ensuring compliance with South African property law and professional standards. This agreement is particularly important as it forms the legal basis for the agent's remuneration and sets out the scope of their authority to act on behalf of the property owner.

1. Parties: Identification of the property owner (the Principal) and the estate agent (the Property Practitioner), including their full details and registration numbers

2. Background: Context of the agreement, including the property owner's intention to sell/lease the property and appointment of the estate agent

3. Definitions: Key terms used in the agreement, including 'Commission', 'Property', 'Effective Date', 'Mandate Period', and 'Successful Transaction'

4. Appointment and Authority: Formal appointment of the estate agent and scope of authority granted

5. Property Details: Complete description of the property, including physical address, registration details, and title deed information

6. Duration of Mandate: Period for which the agreement is valid, including start and end dates

7. Commission Structure: Detailed explanation of commission calculation, percentage rates, and payment terms

8. Agent's Obligations: Specific duties and responsibilities of the estate agent, including marketing commitments and professional conduct

9. Property Owner's Obligations: Responsibilities of the property owner, including provision of information and access to the property

10. Payment Terms: Specific conditions for when commission becomes due and payable, including payment timeline

11. Termination: Circumstances under which the agreement can be terminated by either party

12. Disputes: Process for handling disagreements between parties

13. General Provisions: Standard contractual clauses including notices, entire agreement, and governing law