Plett Property October 2011

SELLERS BEWARE OF DOUBLE COMMISSION

In a recent case the Bloemfontein appeals court ruled that the estate agent that supposedly sold a Durban North home was not the effective cause of the sale, and award full commission with interest and legal fees to the suing agency. The seller had already paid the full commission to the agent who signed up the contract. There may be legal recourse against the buyer, but this is a High Court application, so it is likely that the seller will end up paying more than double commission.

Commission is due to the agent who is the “effective cause of the sale”. The agent who first introduces the property to the buyer is usually the effective cause of the sale, but not always. Each case is judged on its own merits, so the outcome is not always as obvious as it may first appear.

This puts the seller in a risky position, especially when more than one agency is marketing the property. Regardless of the buyer’s or estate agent’s actions, and even if the seller is not aware of the buyer using two agencies, the seller can be liable for double commission. It is common for buyers to work with more than one agent, often without the agents’ knowledge.

How can sellers protect themselves against double commission?:

  • The best way to protect yourself is to give a sole mandate to one estate agent.
  • Don't enter into private agreements with a buyer, unless you are sure that the buyer has notseen your property with an agent.
  • When working with multiple agents, make sure that yo know each and every buyer that visits your property and with which agent.
  • If you know a buyer has seen your property with another agent recently, insist on working with the original introducing agent, or at very least, informing that agent. 

We recommend giving a sole mandate to a reputable agent.

 

 

 

 

 

Property of the month:

1
 

What a Home!!!

Designed by architect Paulo Viotti of Vivid Architects and decorated by Suzy Lubner, this playful house is situated in an eco-security estate. Expansive sea views, and 400m from Robberg Beach and Nature Reserve.  Designed to flow easily between living areas, yet able to close off areas depending on weather conditions or to allow children to enjoy themselves separately.  Faclities include a separate family room, generous patios on both sides of the house, a heated pool, pizza oven, cozy outdoor lounge with fireplace, four bedrooms, guest loo, four bathrooms, double garage and a separate flat.  A must see.
Call Hein at 083 701 3159000
Offers on R12,000,000
       

Currently on the market:


Mediterranean Beauty in Poortjies
Offers on R 7 900 000


Captivating 3 Bed Colonial with flat
Offers on R 2 750 000


4 Bedroom Secure Golf Estate Home
Offers on R 4 525 000


Modern Elegance: 3 bedrm, 3 bathrm
Offers on R 3 500 000


Brackenridge Estate Bagain Plot
Asking price R 300 000


Whale Rock Ridge plot wih sea view Offers on R 1 640 000


Central 3 Bed, 3 Bath Apartment
Offers on R 3 400 000


Bargain 17Ha Land in Roodefontein
Offers on R 1 400 000


Renovated; sea view: Natures Valley
Offers on R 3 800 000

For more property visit: www.plettenbergbay.com

Property Statistics:

RURAL PROPERTY REVIEW

Prices in the rural property market in Knysna Regional District (the area around Plettenberg Bay and Knysna) remain under pressure in 2011. While prices continued to climb, the number of sales registered per year dropped significantly after 2005. Then the crash came in 2008, and the total value of sales registered per annum dropped dramatically by 50% in 2009. Things have not improved substantially since then. Farm agents working in the area say that as asking prices are declining, some movement is coming back into the market, but only at what would have been considered bargain prices a couple of years ago.
            A significant registratin in 2010 was R22million for a large farm in the Uplands area near Plett which actually sold in 2005. It consisted of a few portions and had large associated water rights.
The average price for rural property is currently around R3million, but it must be remembered that the market is not homogenous. There are extremes of value between upmarket estates and vacant land next to low-cost housing areas. The entry level for a reasonable vacant smallholding is R1million. The highest asking price in the area is R125million for an upmarket game reserve near Plett.
           The highest price achieved in the rural area so far was R50million for a coastal estate near The Crags in 2006, and second highest was for R47.6million for a cliff-top castle to the West of Robberg Nature Reserve. Both were sold by Hein Pretorius, the principal of Sotheby’s International Realty Plettenberg Bay.

 

 

 

Quote for the day:

"In fact, a fundamental interdependence exists between the personal right to liberty and the personal right to property." ~ Joseph Story

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