05/12/2025
⚖️ Recent Court Rulings: Sellers vs Estate Agents in South Africa
Several new judgments highlight how easily disputes can arise between property sellers and estate agents — especially around commission, mandates, and introductions of buyers.
The most important ruling confirms that an estate agent may still be entitled to full commission if they were the effective cause of the sale — even when another agent finalises the deal later, or when the mandate period has expired. Clear mandate agreements and proper record-keeping are essential.
Courts also continue to deal with undisclosed property defects, where sellers have been held liable for failing to disclose serious latent defects. These cases highlight the importance of transparency by both sellers and agents to avoid costly litigation.
Key takeaways:
Clearly define commission rights in sole or joint mandates.
The agent who first introduces a buyer may legally claim commission.
Sellers risk liability for undisclosed defects.
Mediation is often faster and cheaper than litigation.
If you are selling, buying, or acting as an agent, ensure your agreements are airtight and compliant with the Property Practitioners Act to avoid unnecessary disputes.
