Residential Agent Commissions
It is an offence under the Estate Agents Affairs Board (EAAB) Code of Conduct (Clause 8.2) for estate agents to tell clients that their commission rate is prescribed by law, the EAAB, the Institute of Estate Agents of South Africa (IEASA) or anyone else.
1990 – 2000: –
The IEASA recommended professional fees and commissions for estate agent’s services by publishing a Tariff Book for use by its members. The Tariff book recommends minimum fees, hourly rates an sales commissions to be charged by estate agents who are IEASA member for property administration services. The Tarriff Book recommended a 7.5% commission on residential property sales. The 7.5% rate therefore served as a benchmark in the estate agency industry for residential property sales.
The tariffs were last published by the IEASA.
The IEASA no longer issues any guidelines on estate agent commissions and fees. This practice was discontinued in view of changes in the competition laws which meant that it was anti-competitive.
There are currently no official or unofficial guidelines or tariffs whatsoever.
Estate agents are free to charge whatever commissions and fees they choose.