In general, an estate agent has earned his/her commission when:
- the agent was mandated and held a valid Fidelity Fund Certificate;
- the purchaser was, when the contract was signed, willing and able to purchase the property;
- the seller and purchaser entered into a binding agreement;
- the agent was the effective cause of the sale; and
- all suspensive conditions in the agreement have been met.
This may appear straight forward enough, but snags arise in practice. A purchaser could have been introduced to a property by one agent, but only decided to buy and sign an agreement when he subsequently visited the home when another agency held an open house. Or the purchaser decides to buy after the expiry of the period mentioned in the agent’s mandate.
Contact a conveyancer at STBB with any questions and to avoid being held liable for double commission.