The provisions of both the Consumer Protection Act (CPA) and the Property Practitioners Act (PPA) must be kept in mind by the agent when acting in terms of a mandate to sell property. Both these pieces of legislation were drafted with consumer protection in mind and imposes penalties on the agent if the provisions are not followed. According to the CPA an estate agent is considered to be a supplier of services and the seller will be the consumer.
The CPA requires that a written mandate be drafted in understandable language and must contain no terms which are unjust, unreasonable or unfair. Where a specific term limits the agent’s liability or risk, such a clause must be brought to the seller’s specific attention. The seller also has the right to quality, prompt and professional service in terms of the mandate.
If a mandate does not comply with the CPA, both the agent and the agency can be reported to the Consumer Tribunal.
