Can I Claim Commission Before Registration Of Property?

#PropertyLaw #EstateAgent #propertysale
In this episode [178], Bruno Miguel Simao of Bruno Simao Attorneys and Nicholas Brodie of SSLR Incorporated discuss whether the commission can be claimed from the seller before registration.
Can commission be claimed from the seller before registration of the transfer of the property?
This video discusses when commission becomes due for property practitioners and the procedure for payment before registration, as well as the risks involved. It also addresses whether it is permissible for the standard OTP to contain a clause stating that commission will be payable before registration upon fulfilment of suspensive conditions.
[01:34]( • Can I Claim Commission... ) The video discusses the legal consequences of fulfilling a sale mandate and when commission becomes due.
- Different types of sale mandates were mentioned, such as open mandates and exclusive mandates.
- The industry norm is to find a willing and able buyer, bring them to the table, and allow them to make an offer.
- Once the deal is concluded and the contract is perfected, the job is considered done and commission becomes due.
[03:07]( • Can I Claim Commission... ) The difference between when a commission becomes due and when it is payable in property mandates.
- Mandates can have terms or clauses that state when the amount is due versus when it is payable.
- The commission is paid to the agent on transfer when the seller receives the funds.
- In some cases, the commission becomes due before registration, but it is not yet payable until a certain point in time.
- The difference between the types of mandates lies in when the commission becomes due and when it is payable.
[04:41]( • Can I Claim Commission... ) Commission for property sales is earned by the auctioneer upon the seller accepting the sale, but it is typically paid to the property practitioner after registration due to cash flow reasons and seller willingness to pay.
- Commission is earned by the auctioneer once the seller accepts the sale.
- In some cases, commission is only paid to the property practitioner after registration.
- Litigation for commission can still be pursued even if the contract is cancelled after fulfilling suspensive conditions.
- Commission is due before registration.
Bruno Miguel Simão of Bruno Simão Attorneys
www.brunosimaolaw.co.za/
[phone]
[e-mail]
Nicholas Brodie of SSLR Incorporated
www.sslr.co.za/
086-100 7757
[e-mail]
#PropertySale
#PropertyPractitioner
#EstateAgent
#PropertyLaw