Recommended wording for use in your contracts



It appears that some estate agents are still referring to IEA Tariffs in their documentation despite being notified that tariffs have been abolished and all references are to be removed from all contracts. Herewith recommended alternative wording to assist you in this regard. REMOVAL OF REFERENCE TO IEA TARIFFS FROM DOCUMENTATION (as originally circulated to IEA members 15 May 2004) AGENT’S COMMISSION – Possible clause Example of previous wording: The Seller shall pay the Agent commission calculated according to the recommended tariff of the Institute of Estate Agents in the jurisdiction of the Property, plus VAT in respect of this sale. Such commission shall be due to the agent upon fulfilment of the suspensive conditions contained herein and shall be payable on registration of transfer or upon cancellation of this Agreement. New wording The Seller shall pay the Agent commission of R_______________ (______%), plus VAT in respect of this sale. Such commission shall be due to the agent upon fulfilment of the suspensive conditions contained herein and shall be payable on registration of transfer or upon cancellation of this Agreement. LEASE AGREEMENTS – Possible clauses Old: The Landlord agrees to pay the Agent a monthly collection fee and a letting fee in terms of the recommended tariff of the Region of the Institute of Estate Agents of South Africa having jurisdiction over the area where the building is situated New: The Landlord agrees to pay the Agent a monthly collection fee and a letting fee of R________________________ Old: Should the rental be collected by the Landlord himself from the commencement of this Lease, then the Landlord shall only pay the Agent a letting fee in terms of the tariff of the appropriate Region of the Institute of Estate Agents of South Africa New Should the rental be collected by the Landlord himself from the commencement of this Lease, then the Landlord shall only pay the Agent a letting fee of R__________________