IS THE MANDATE AFFORDED AN ESTATE AGENT SUBJECT TO THE PROVISIONS
OF THE CONSUMER PROTECTION ACT?

TO ALL EXTENDED BUSINESS PARTNERS

Number

02/2016

When an owner instructs an estate agent to sell his/her immovable property, such appointment is a "transaction" as defined in terms of the Consumer Protection Act 68 of 2008 (hereinafter referred to as CPA).   The owner of the immovable property will be the consumer and the estate agent will be the supplier.  The transaction will be subject to inter alia the following provisions of the CPA:
  • The agent must not be guilty of unconscionable (unacceptable) conduct.
  • The contract terms must be fair and reasonable
  • The consumer (owner) is entitled to expect the supplier (agent) to deliver timely and quality service

Where an estate agent approaches an owner of property seeking a mandate to sell the owner's property, this approach will resort under the definition of "direct marketing" and the owner will be entitled to a 5 day cooling-off period.

The mandate given to an estate agent is thus subject to the provisions of the CPA, however, given the definitions of "Intermediary" the activities of the estate agent are not . These activities are governed by the Estate Agency Affairs Act, 112 of 1976.

For any queries please contact our property law division at the details below:

Allen Stanley West
Tel: 012 425 3549
awest@macrobert.co.za

Daleen Loubser
Tel: 012 425 3489
dloubser@macrobert.co.za

Disclaimer: This newsflash is for general information only and should not be used as legal or professional advice. No liability can be accepted for any errors or omissions, nor for any loss or damage arising from reliance and any information therein