No estate agent shall--
| 8.1 |
stipulate for, demand or receive directly or indirectly any remuneration, commission, benefit or gain arising from or connected with any completed, pending or proposed contract of sale or lease which is subject to-- |
| 8.1.1 |
a suspensive condition, until such time as that condition has been fulfilled; or |
| 8.1.2 |
a resolutive condition, during the time that the transaction may fall away as a result of the operation of the said resolutive condition: |
Provided that the aforegoing shall not apply if--
| a) |
good cause exists; and |
| b) |
the party liable for the payment of the remuneration, commission, benefit or gain has expressly consented in a written document executed independently of the contract in question, to such payment at any time, notwithstanding the fact that the said contract is subject to a suspensive or resolutive condition, as the case may be; and |
| c) |
such document contains an explanation of the implications and financial risks for such party of such payment; and |
| d) |
such document is signed by such party and the estate agent in question; |
| 8.2 |
convey to his client or any other party to a completed or proposed transaction in which he acted or acts as an estate agent, that he is precluded by law from charging less than a particular commission or fee, or that such commission or fee is prescribed by law, the board or any institute or association of estate agents or any other body; |
| 8.3 |
introduce a prospective purchaser or lessee to any immovable property or to the seller or lessor thereof, if he knows, or has reason to believe, that such person has already been introduced to such property or the seller or lessor thereof by another estate agent and that there is a likelihood that his client may have to pay commission to such other, or to more than one, estate agent should the sale or lease be concluded through his intervention: Provided that the aforegoing shall not apply if the estate agent has informed his client of such likelihood and obtained his written consent to introduce such party to the property or the seller or lessor thereof; |
| 8.4 |
include, or cause to be included, or accept the benefit of, any clause in a mandate or in a contract of sale or lease of immovable property, providing for payment to him by the seller or lessor of immovable property, of any remuneration, commission, benefit or gain arising from or connected with a contract of sale or lease, regardless of the fact whether the purchaser or lessee is financially able to fulfill his obligations in terms of the said contract: provided that the aforegoing shall not apply if-- |
| a) |
good cause exists; and |
| b) |
the seller or lessor has, prior to his signature of the contract or mandate (as the case may be) consented in writing in a document executed independently of the said mandate and contract, to such payment; and |
| c) |
such document contains an explanation of the implications and financial risks for the seller or lessor of such payment; and |
| d) |
such document is signed by both the estate agent and the seller or lessor; |
| 8.5 |
include, or cause to be included, or accept the benefit of, any clause in a contract of sale or lease of immovable property negotiated by him, entitling him to deduct from any money entrusted to him (in terms of the contract, any remuneration, commission, benefit or gain arising from or connected with such contract: Provided that the aforegoing shall not be so construed so as to prohibit an estate agent from making such deduction when such money is actually paid over by him to the party entitled thereto and such party is in terms of the said contract liable for the payment of such remuneration, commission, benefit or gain. |
Contingency Fees Act, 1997
