Stefan obtained his LLB degree from Stellenbosch University and is an admitted Attorney of the High Court of South Africa. He joined STBB as part of the Claremont litigation department and practices in commercial and general litigation, with a focus on contractual, property, rental and eviction disputes.

Thought of the Week | Selling Mandate Clauses In Rental Agreements

Some estate and rental agencies include clauses in their standard lease agreements providing the agency with an exclusive sole mandate to find a buyer for the property should the landlord wish to sell the property during the existence of the tenancy. This is prohibited by the EAAB’s Code of Conduct and would not be enforceable.

What is allowed and enforceable is to create an ordinary open mandate in this manner from which the estate agency can eventually benefit. As the Consumer Protection Act applies to the relationship between landlords and agents and requires open and fair dealing by service providers, the agency should point out this clause to the landlord, failing which it may constitute grounds for the landlord to deny that he is bound by that provision.

Let STBB assist you with your lease agreements. Contact us at STBB.