During May 2024, the Durban High Court adjudicated a dispute between an estate agent and lessor of a property, where the lessor argued no commission is due to the agent as no amount was expressly agreed upon.
In the case of Golden Rewards 120 CC t/a Remax Marine v M3 Holdings (Pty) Ltd, an agent was instructed to find a lessee for a commercial property under a verbal mandate, which was later confirmed in writing.
The agent found a tenant, negotiated the lease terms and submitted a draft lease agreement to the lessor for acceptance. After the lessor signed the lease agreement, they denied owing the agent any commission since they never agreed on the amount.
The court confirmed that the existence of a mandate was proven and there was substantial performance by the agent in terms of the mandate and as such, confirmed that the agent was entitled to commission.
The court awarded commission based on the average rate in the area.