Ripped off! by monkey6

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FOR SALE
NORTH BEACH 1.5 bed, pkg, seaview, SIT... R580 000 2.5 bed, frontline, pkg. .......... R950 000 SOUTH BEACH 2 bed, pkg, uShaka view ...... R500 000 ALBERT PARK 1.5 bed, pkg .......................... R380 000 ESPLANADE Bachelor, harbour view. R300 000 neg. 1.5 bed, harbour view ... R480 000 neg.

Call Rene on 083 279 0472 or Gail on 082 925 3991
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Fine to partly cloudy. Wind gentle SE but moderate SW in the evening.

Partly cloudy becoming cloudy with evening showery rain (30%). Wind light SW but moderate SW in the afternoon.

Ri pp e d off!
Corrinne Louw Twenty five percent commission. That's what a 55-year-old domestic worker will be paying an estate agent for a house she has bought in Inanda Newtown A. The woman, a first time buyer, will fork out R 120 000 - R30 000 of which is commission. This rate has been described as "shocking" and "tantamount to stealing" by property insiders. The woman's employer said she was shocked when she realised that the estate agent was charging such a high commission rate. "I know that the industry rate is a maximum of eight percent. This is clearly a rip off of an uninformed consumer." Kwana put it to the estate agent that he was exploiting the seller, a pensioner and an uninformed consumer. He vehemently denied this. "Ignorance of the law is not an excuse and in this case the seller was well informed. I spoke to her in Zulu so she did understand." He added: "Selling a house in a township is risky business." The agency involved in this instance is registered with the Estate Agency Affairs Board (EAAB). In 2004 the 7.5-percent commission charged by estate agents and recommended by the Institute of Estate Agents (IEASA) in their tariff book was scrapped by the Competition Commission. At the time the institute's president, Bill Rawson, said this ruling would open the flood gates for unscrupulous agents to charge whatever they wanted. Since then the rates have not been fixed but the accepted industry rate remained at 7.5-percent with an absolute high of eight percent. The conveyancer involved in the transfer of the house in question refused to comment on the issue. The chairman of the Black Conveyancers Association, Mervin Maistry, said conveyancers had no ethical obligation to step in when cases like this occurred. While he agreed that the commission was high he said it was necessary to look at .,any unique circumstances that might surround the case". Sifiso Msomi is a partner in the conveyancing department of the renowned law firm, Shepstone & Wylie. He was stunned by the 25 percent price tag demanded by the estate agent. "There have been cases that I have seen where estate agents are negotiated down to as low as two percent but to go as high as 25 percent is absolutely shocking." Sipho Risiba of the EAAB said: "An estate agent may be instructed to sell a property without anything being said about commission. It would then be sound business practice for the estate agent to confirm his mandate in writing and also to stipulate the amount of commission payable by the seller should the mandate be fulfilled. "In the total absence of any agreement on the amount of the commission, the amount must be fixed according to the normal rate charged

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Cubs Nursery and School Grad by other estate agents in the area." Kerry Warburg , the chairperson of the Institute of Estate Agents in KwaZulu-Natal , said: "There are no laid-down rules, but the industry rate is around five to eight percent. I did hear about a case in Amamzimtoti where 12 percent was charged, but 25 percent - never."


								
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