Is an Estate Agent bound by any professional code?
ll estate agents are subject to the Code of Conduct framed in terms of the Estate Agent’s Act, focussed primarily on the relationship between estate agents and the consumer.
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Is an Estate Agent’s commission negotiable?
There is no tariff regulating commission and, while most agents use the commission tariff recommended by the Institute of Estate Agents, this is purely voluntary (7% of purchase price).
The Code of Conduct regulating the professional ethics for estate agents prevents an estate agent form stating to a party that he is precluded by law from charging less than a stated commission.
After our superb service, do you really want to negotiate on our commission?
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Is Vat payable on commission?
The VAT act requires that any company earning a gross income of more than R200 000 per annum be registered as a “vendor” and therefore pay VAT. In most cases this would apply to Estate Agencies, therefore 15% VAT is payable on our commission.
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When can an agent take commission form a deposit paid by the purchaser?
At common law an estate agent would earn commission on the conclusion of a valid and enforceable agreement of sale and the fulfilment of all the suspensive conditions therein.
The estate agent’s Code of ‘Conduct disallows a provision in the agreement of sale providing for the payment of estate agents commission, irrespective of whether or not the suspensive conditions have been fulfilled.
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What is Movable Property?
If the movable is completely incorporated into the immovable property, it becomes part of the building erected thereon and therefore part of the immovable property.
The test to be employed to ascertain whether the movable has been attached in such a way as to render it part of the immovable is to establish whether it forms an integral part of the immovable and that a separation thereof would involve substantial injury either to the immovable property or to the movable accessory.
It is important to note that loose standing kitchen and study units remain movable albeit that visually they appear to be an integral part of the property. If the purchaser intends to submit an offer to purchase, which incorporates these features, this must be stipulated specifically in the Agreement of Sale. The same provisions apply to swimming pool cleaning equipment, wendy houses, etc.