What do Selling Agents do?
Real Estate Agents are instructed by the Owner/authorised representative of an Immovable Property, to market and sell it to the public. An Estate Agent has many ways to market the Property. Most Agents market the Property on the internet, using Property Advertising Apps and local newspapers or word of mouth.
Agents also advertise their services so that prospective buyer’s contact them to indicate what properties they are interested in purchasing. It is the Estate Agent’s job to bring buyers and Owners together to sell their properties.
What do Letting Agents do?
A letting Agent is instructed by an Owner to market the property to rent out.
The letting agent attends to the following on behalf of the Owner;
- Screens prospective tenants
- Attends to the ingoing inspection
- Manages communication with the tenants during the lease period
- Arranges for contractors to do necessary work at the property
- Collects the monthly rental
- Attends to the outgoing inspection when the lease period expires and the tenants vacate the premises
The services of a Real Estate Agent is not necessary to comply with the formal or legal requirement of selling or letting a property. If the Seller already has a buyer for the Property or a prospective tenant, using the services of an Estate Agent is not a requirement to enter into an Agreement of Sale or Lease Agreement. An Attorney can draft the agreements for the Owner.
The Attorney that will attend to the transfer of the Property, can draft an Agreement of Sale for the parties.
If the Owner signed a Mandate Agreement with an Estate Agent, then depending on the terms of the Mandate Agreement, the Owner can still be liable for Estate Agent commission even if the Owner was able to find a purchaser or tenant himself.
A good Real Estate Agent can be very helpful in negotiating the finer details of a sale or lease.
On a practical level, Real Estate Agents are valuable during a sale transaction. They assist with the following;
- Arranging with the tenants to vacate the property prior to transfer,
- They arrange for certificates of compliance with the contractors,
- They arrange key handovers between the parties on Transfer Date, and also
- Assist with any practical problems in the buildings on the Property, should the Owners not be available to do so.
The Attorney only attends to the administrative aspect of transferring a property from an Owner to the Purchaser, yet the Estate Agent spends a lot of time and effort to ensure a practical and smooth transition of the Property between the Owner and the Purchaser.
IN CONCLUSION
The decision to appoint an Estate Agent will depend entirely on your own situation and if you practically require the services of an Agent.
Disclaimer: Although I am an attorney by profession, I am not YOUR attorney. This article is for informational and educational purposes only, does not constitute legal advice and does not establish any kind of attorney-client relationship with me. I am not liable or responsible for any damages resulting from or related to your use of this information.