Estate agents in South Africa provide an in-depth understanding of the property market. They assist with negotiations between home buyers and property sellers. They also compile the offer to purchase and other paperwork to effect a real estate sale called a deed of sale. They cost the house buyer nothing, and in fact can help the home buyer save money by working with a home loan bond originator service to secure them the best homeloan deal.
Estate agents are also governed by the Property Practioners Act . The Act offers much-needed protection to consumers by imposing an obligation on Property Practitioners to request sellers or lessors to produce a duly completed and signed mandatory disclosure form. This is a form that disclose all defects on the property that are known to the seller or the lessors and renters.
The Property Practitioners Act replaced the EAAA in 2022. ( Estate Agency Affairs Act ). The Estate Agency Affairs Board then changed it's name to PPRA
Other Obligations of the Estate Agent:
Acting honestly and with fair conduct.
Qualifying the buyer, i.e. obtaining information about the buyer in order to introduce him to the ideal home.
Showing selected properties to the buyer.
Maintaining contact with the prospective buyer.
After-sales service
Complying at all times with the legal and ethical obligations owed to a prospective buyer, regulated by the Estate Agency Affairs Board, i.e.: the duty not to make a misrepresentation, the obligation to disclose material facts, the duty not to prejudice the interests of the buyer, the duty to act with responsible care and skill, the duty not to discriminate against the buyer, the obligation to be ethical regarding the receipt of trust money, the duty not to abuse or unlawfully disclose confidential information.
In Terms of a Seller (or Lessor)…
The estate agent's function is to introduce a willing and able buyer to his client's property, but he also guides a seller through the selling process by:
Advising him on the market value of his property;
Marketing his property effectively;
Assessing prospective purchasers to ascertain whether they are financially able to purchase his property and what their housing needs are;
Advising a prospective purchaser on the suitability of the property for his needs, its general conditions and whether there are any restrictions on the use of the property;
making sure that the offer to purchase document is legally valid and reflects the requirements and intentions of all the parties concerned;
Advising the buyer on financing the transaction and assisting him in arranging such finance;
Liaising with the conveyancing attorneys attending to the transfer of the property