1.Numerous sellers give mandates to multiple agents simultaneously to sell their property and end up with the danger of paying double agents commission.

2. Have you as the seller mandated multiple agents to market and ultimately sell your property and the following transpired? – Agent A introduced the buyer to your property and thereafter the same buyer decides to purchase the property through Agent B.

3. The question is to which agent must the commission be paid: Agent A who introduced the buyer or Agent B who sold the property?

4. The law stipulates that the agent will only be entitled to commission when:

4.1 The agent duly performed in terms of the mandate; and

4.2 The agent has a valid fidelity fund certificate issued at the time of the sale.

5. The due performance of the mandate depends on the terms of the mandate. However, in the absence of contrary terms, it entails the following:

5.1 An introduction by the agent of a purchaser to the seller;

5.2 That the purchaser was, when the contract was signed, willing and able to purchase the property;

5.3 That a valid contract of sale was concluded;

5.4 That the introduction was the effective cause of the contract.

6. It is therefore important that the sellers consider their risks before entering into a mandate with multiple agents in order to protect themselves against the risk of paying double commission.

7. Should you need advice before you accept an Offer to Purchase in order to avoid paying double agents commission or if double agents commission is claimed from you, please feel free to contact one of our friendly attorneys to assist you.

Lloyd Wegerle
Attorney BCom (Law)(UP), LLB (UP)