Non Exclusive Buyer Representation Agreement Template for South Africa

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Key Requirements PROMPT example:

Non Exclusive Buyer Representation Agreement

"I need a Non-Exclusive Buyer Representation Agreement for a UK-based investment company looking to purchase commercial properties in Cape Town, with a focus on retail spaces valued between R10-50 million, starting from March 2025."

Document background
The Non-Exclusive Buyer Representation Agreement is a fundamental document in South African real estate transactions, designed to protect both buyers and agents while maintaining flexibility in the property search process. This agreement is typically used when a buyer wants to retain the services of a real estate agent while maintaining the freedom to work with other agents or pursue properties independently. The document complies with the Property Practitioners Act 22 of 2019 and other relevant South African legislation, including consumer protection laws and FICA requirements. It outlines the agent's duties in property search, viewing coordination, and negotiation assistance, while clearly stating the non-exclusive nature of the relationship. The agreement is particularly valuable in competitive property markets where buyers want to maximize their chances of finding suitable properties through multiple channels.
Suggested Sections

1. Parties: Identification of the buyer (client) and the real estate agent/agency, including full legal names, registration numbers, and contact details

2. Background: Context of the agreement, explaining the buyer's intention to purchase property and the agent's role in assisting with the search

3. Definitions: Key terms used in the agreement, including 'Property', 'Territory', 'Commission', 'Effective Period', and other relevant terms

4. Appointment and Scope: Details of the agent's appointment, emphasizing the non-exclusive nature, and defining the geographical area and property types covered

5. Duration: Term of the agreement, including start date, end date, and any renewal provisions

6. Agent's Services and Obligations: Comprehensive list of services the agent will provide, including property search, viewings, negotiations, and professional advice

7. Buyer's Obligations: Client's responsibilities, including providing accurate information, maintaining communication, and acting in good faith

8. Commission Structure: Details of any fees or commission payable, including payment terms and conditions

9. Non-Exclusive Arrangement: Explicit clarification that the buyer may work with other agents and direct sellers

10. Confidentiality: Obligations regarding confidential information and compliance with POPIA

11. Termination: Circumstances and procedures for ending the agreement

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

Optional Sections

1. Property Requirements: Detailed specification of the buyer's property requirements - used when the buyer has specific criteria

2. Dual Agency Disclosure: Required if the agency might represent both buyer and seller in a transaction

3. International Buyers Clause: Additional provisions for foreign buyers, including Exchange Control Regulations compliance

4. Property Practitioner's Disclosure: Specific disclosures required under the Property Practitioners Act - used when applicable

5. Digital Communication Consent: Specific provisions for electronic communications and virtual services - used when digital services are primary

6. COVID-19 Protocols: Special arrangements and protocols during pandemic conditions - used when relevant

7. Referral arrangements: Terms regarding referrals to other service providers - used when the agency has preferred partners

Suggested Schedules

1. Schedule A - Service Fee Structure: Detailed breakdown of all applicable fees, commissions, and payment terms

2. Schedule B - Property Requirements Checklist: Detailed list of buyer's property requirements and preferences

3. Schedule C - Agency Disclosure Form: Standard form required by South African real estate regulations

4. Schedule D - Buyer's Proof of Funds: Template for documenting buyer's financial capability

5. Appendix 1 - FICA Requirements: List of required documents for FICA compliance

6. Appendix 2 - Property Viewing Record: Template for recording properties viewed with the agent

Authors

Alex Denne

Head of Growth (Open Source Law) @ Genie AI | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Relevant legal definitions
Relevant Industries

Real Estate

Property Development

Property Investment

Legal Services

Financial Services

Construction

Housing Development

Commercial Property

Residential Property

Relevant Teams

Legal

Real Estate Operations

Compliance

Sales

Business Development

Property Management

Contract Administration

Customer Relations

Risk Management

Document Control

Relevant Roles

Real Estate Agent

Property Practitioner

Real Estate Broker

Property Consultant

Legal Counsel

Compliance Officer

Real Estate Principal

Property Manager

Sales Director

Contracts Manager

Business Development Manager

Property Investment Advisor

Agency Principal

Real Estate Operations Manager

Industries
Property Practitioners Act 22 of 2019: This is the primary legislation governing real estate practitioners in South Africa, replacing the Estate Agency Affairs Act. It regulates the conduct of property practitioners, mandatory disclosures, and professional obligations in real estate transactions.
Consumer Protection Act 68 of 2008: Protects consumers' rights and ensures fair, transparent, and honest dealing in service agreements. Relevant for terms and conditions, disclosures, and fair treatment in the buyer representation agreement.
Protection of Personal Information Act (POPIA) 4 of 2013: Regulates the collection, processing, and storage of personal information. Essential for handling client's personal data in the agreement.
Financial Intelligence Centre Act 38 of 2001: Requires real estate agents to perform due diligence on clients and report suspicious transactions. Relevant for compliance requirements in the agreement.
Alienation of Land Act 68 of 1981: Governs the formalities required for property transactions in South Africa. Important for understanding the scope of the agent's duties in facilitating property purchases.
Prevention of Illegal Eviction and Unlawful Occupation of Land Act 19 of 1998: Relevant for understanding property rights and occupation issues that might need to be disclosed or considered in the property search process.
South African Common Law of Contract: Governs the basic principles of contract formation, including offer and acceptance, consideration, and capacity to contract.
Promotion of Equality and Prevention of Unfair Discrimination Act 4 of 2000: Ensures non-discrimination in property transactions and must be reflected in the agreement's terms and the agent's obligations.
Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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