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The Commission Agreement (Real Estate) is a critical document in South African property transactions, used when a property owner engages a real estate agent or agency to market and sell/lease their property. This agreement type is essential for compliance with the Property Practitioners Act 22 of 2019 and other relevant South African legislation. It outlines the scope of the agent's authority, commission structure, marketing responsibilities, and compliance obligations. The document typically includes specific provisions for trust account management, FICA compliance, and consumer protection requirements. It's particularly important as it provides legal protection for both parties and ensures transparency in the commission arrangement, while adhering to strict regulatory requirements specific to the South African real estate sector.

1. Parties: Identification of the Property Owner and the Estate Agent/Agency, including registration numbers and license details as required by the Property Practitioners Act

2. Background: Context of the agreement, including brief description of the property and the owner's intention to sell/lease

3. Definitions: Definitions of key terms used throughout the agreement, including 'Property', 'Commission', 'Effective Date', and 'Successful Transaction'

4. Appointment and Duration: Terms of the estate agent's appointment, including whether exclusive or non-exclusive, and the duration of the mandate

5. Property Details: Comprehensive description of the property, including physical address, registration details, and size

6. Agent's Obligations: Detailed listing of the estate agent's duties, marketing commitments, and service standards

7. Owner's Obligations: Property owner's responsibilities, including providing accurate information and reasonable access to the property

8. Commission Structure: Detailed explanation of commission calculations, rates, and payment terms

9. Payment Terms: Specific conditions for when commission becomes due and payable, including any deposit requirements

10. Marketing and Advertising: Agreement on marketing strategies, costs, and responsibilities

11. Compliance Provisions: Compliance with relevant legislation including FICA, POPIA, and Property Practitioners Act

12. Termination: Conditions and procedures for terminating the agreement

13. General Provisions: Standard clauses including notices, governing law, dispute resolution, and entire agreement