Estate Agent Commission Calculator
Estate agent commission in South Africa is negotiable and usually varies between 5 to 7.5%, plus VAT.
Are estate agent commissions regulated or fixed?
The PPRA do not regulate the amount an estate agent should be paid. If your property is optimally priced, situated in a desirable location, and in great condition, an estate agent may consider a reduced commission rate. This is because the likelihood of selling such a property is higher. While it may be tempting to view the estate agent's commission as a cost-saving opportunity, it's advisable not to. Lower commissions can reduce the property professional's marketing budget for your property and might also incentivize them to expedite the sale, potentially compromising the final selling price.
The PPRA do not regulate the amount an estate agent should be paid. If your property is optimally priced, situated in a desirable location, and in great condition, an estate agent may consider a reduced commission rate. This is because the likelihood of selling such a property is higher. While it may be tempting to view the estate agent's commission as a cost-saving opportunity, it's advisable not to. Lower commissions can reduce the property professional's marketing budget for your property and might also incentivize them to expedite the sale, potentially compromising the final selling price.
When is an estate agent commission payable?
The estate agent's commission is secured once all conditional terms in the sales contract, such as obtaining a bond or the buyer selling their current home, have been satisfied. However, the conveyancer, the attorney responsible for transferring the property title to the buyer, serves as a safeguard. They ensure the estate agent's commission is disbursed only after the property's registration in the Deeds Office. Consequently, the seller receives the purchase price and the estate agent receives their commission simultaneously, once the attorney has balanced the transfer account.
The estate agent's commission is secured once all conditional terms in the sales contract, such as obtaining a bond or the buyer selling their current home, have been satisfied. However, the conveyancer, the attorney responsible for transferring the property title to the buyer, serves as a safeguard. They ensure the estate agent's commission is disbursed only after the property's registration in the Deeds Office. Consequently, the seller receives the purchase price and the estate agent receives their commission simultaneously, once the attorney has balanced the transfer account.
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