Estate agents in trouble

Posted On Tuesday, 19 October 2004 02:00 Published by eProp Commercial Property News
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Consumers will be the winners after the Competition Commission's decision on Friday to prosecute the Institute of Estate Agents for price-fixing and contravening the Competition Act

Menzi SimelaneThe commission said the institute had "indirectly" fixed the prices of services provided by estate agents, depriving consumers of competitive prices.

The institute recommends fees for estate agents' services by publishing a tariff book for use by its members.

The book suggests minimum fees, hourly rates and sales commissions to be charged by estate agents (who are members of the body) for property administration services, sales of immovable property, sales of businesses and negotiating leases.

The tariff book recommends a 7.5% commission on residential property sales, which has become a benchmark in the real estate industry, said a statement from the commission on Friday.

Menzi Simelane, the head of the Competition Commission, says that, because of the book prices, competition had become non-existent in the industry.

 

Last modified on Tuesday, 10 June 2014 08:22

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