Hi Reader 👋

This week's edition of Law in a Coffeeshop is Sponsored by BKD AUDITORS. (More on them at the end.)

Stop everything and read this BEFORE signing that estate agent mandate!

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Did you know an estate agent needs a mandate from you, the Seller/Owner, to sell your property?

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And there are serious rules and regulations attached to that mandate. Miss one, and your mandate could be invalidated!

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Here’s a quick 101 on some of the must-haves for your mandate:

1. It must be writing, not verbal! 📝
2. Your signature needs to be on it. 🖊
3. Make a note of the expiry date, it has to be there. 📅
4. Your estate agent’s commission or fees should be clearly stated. 💰

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Now, let’s take a quick detour to answer a common and tricky question:

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Can a mandate be signed electronically?

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The world of contracts and electronic signatures can be a bit of a maze, but let’s try to simplify.

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According to the Code of Conduct of the Property Practitioner’s Act (the big boss of estate agent rules and regulations):

• Section 34.3.1.3.1 reads (paraphrased by me) clients can validate a mandate by signing it, either in traditional ink or by electronic signature, as authorized by the Electronic Transactions and Communications Act (ETCA).”

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Dipping our toes into the ETCA, we find that it greenlights the use of electronic signatures. However, it bans it for certain types of agreements like deeds of sale or an OTP/sale agreement for immovable property.

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Simplifying all this legalese, my thoughts & conclusion is: Yes, you can use your e-signature for a mandate!

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But when it comes to the agreement of sale for your property, stick to pen and paper.

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Stay informed and avoid any surprises by knowing what’s expected of you.

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Thanks for reading!

Have a great week!

~Francois ☕

Sponsored by BKD AUDITORS

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BKD Auditors is a multidisciplinary audit/accounting/tax/advisory firm. They seek to add value to their clients through building long-term relationships allowing them to design tailored solutions while giving them the peace of mind that their financial compliance needs are taken care of.

Use this link to contact them now: https://www.bkdo.co.za/​

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Click here to subscribe: https://francois-vorster.ck.page​

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