Rental Mandate for the purposes of finding a suitable tenant for the property
Rental Mandate
1. Schedule
1.1 The Agency:
1.2 The Agent: StevenJustinSaulJessie
1.3 Landlord:
1.4 PassportID No:
1.5 Physical Address:
1.6 Cellular Number:
1.7 Email Address:
1.8 Bank:
1.9 Name of account holder:
1.10 Account Type:
1.11 Account number:
1.12 Transfer Reference:
1.13 The Property Address:
1.14 Required Rental:
1.15 Including:
1.16 Excluding:
1.17 The Damage Deposit:
1.18 The Utilities deposit :
1.19 Bedrooms:
Bathrooms :
Garages or Parking Bays:
Living Areas :
1.20 Maximum Occupants:
1.21 Available from:
1.22 Minimum Lease Period:
1.23 Smoking: yesno
1.24 Pets: yesno
1.25 Rental escalation: Negotiable but not more than 8% p.a.
1.26 Agents Commission: One months rent incl VAT
1.27 Agents Renewal Fee : 2 % of the value of the new contract excl Vat (Clause 6.1.4 )
2. Nature of Mandate Agreement
I, the Landlord, as the owner of the Premises set out in the Schedule, nominate Grounded Property Professionals to be my Agent from the date of signature of this Mandate for the term set out in clause 7 of this Mandate for the purposes of finding a suitable tenant for the property.
3. Rights and Duties
3.1 The Agent is tasked with finding a suitable Tenant to lease the Premises from the Landlord. In so doing the Agent is responsible for the following:
3.1.1 Advertising, marketing and otherwise exposing the Premises to potential Tenants;
3.1.2 Arranging for potential Tenants to view the Premises and to have access to the Premises at all reasonable times for this purpose;
3.1.3 Negotiating and drawing up the subsequent Lease Agreement with potential Tenants
3.1.4 Performing all vetting, including but not limited to credit, affordability, employment and other reference checks on potential Tenants who have applied to lease the Premises;
3.1.5 Informing the Tenant of all rights and duties in terms of the Lease Agreement including the Tenant’s duties to pay Rental on time and to look after the Premises;
3.1.6 Initiating and performing the incoming inspection of the Premises and recording all existing damages or defects to the Premises;
3.2 The Landlord agrees to the erection of a To Let board at the premises providing it complies with the municipal by laws.
4. Commission & Fees
The landlord agrees to the following commission and fees to be paid to the agent for the provision of the following services:
4.1 Procurement Commission
The Agent is entitled to a Commission from the Landlord of one month's rent (Value Added Tax at the standard rate included)
4.2 Renewal Commission
4.2.1 The Agent is entitled to a Commission from the Landlord of 2% (excluding Value Added Tax thereon at the standard rate) upfront, on the value of the full Lease renewal period (which is calculated by taking the value the renewal period times by the percentage payable) for renewing the lease.
4.2.2 It is specifically recorded that, should the tenant renew the Lease or conclude a further lease agreement after the termination or cancellation of the Lease with or without the assistance of the Agent; then the Agent will be regarded as the effective cause of the conclusion of the renewal or further lease agreement. The Agent will be entitled to payment of commission by the Landlord as specified above. This fee will be payable for a maximum of 2 years after the initial period.
5. Sale of the Premises
5.1 If the Tenant signs a Sale Agreement with the Landlord at any time during the period of Lease Agreement or any renewal of the Lease Agreement or within 12 (Twelve) months after the Lease Agreement has terminated; then the Agent will be regarded as the direct reason that the sale took place and will be entitled to payment, by the Landlord, of Commission equal to 4.0 % (Plus Value Added Tax thereon).
5.2 The Landlord agrees that when the premises is for sale, and a Sale Agreement is concluded, that the Agent will be notified by the Landlord if the sale occurs at any time during the period of Lease Agreement or any renewal of the Lease Agreement or within 12 (Twelve) months after the Lease Agreement has terminated
6. Breach
6.1 In the event that either Party breaches the terms of the Mandate, and:
6.1.1 the provisions of section 14 of the Consumer Protection Act 68 of 2008 (“the CPA”) apply and such Party remains in breach of such term for a period of 20 (Twenty) Business Days after despatch of a written notice calling upon the Party to remedy such breach; or
6.1.2 the provisions of section 14 of the CPA do not apply and such Party remains in breach of such term for a period of 7 (Seven) calendar days after despatch of a written notice calling upon the Party to remedy such breach; then the innocent party shall be entitled at his sole discretion and without prejudice to any other rights in law to either claim specific performance in terms of this Mandate or to cancel this Mandate forthwith and without further notice claim damages from the defaulting Party.
7. Term
This Mandate will terminate on the payment of the Commission stipulated in clause 4.1 and the Agent’s liability will end, provided that he has duly exercised his duties in terms of clause 3. Should any further disputes arise between the landlord and tenant after termination of this mandate, the Agent cannot and will not be responsible for any dispute resolution.
8. Limitation of Liability
Neither Party shall be held liable for any loss, damage or injury which either Party may suffer unless such loss, damage or injury is due to the breach of this Mandate, gross negligence of the defaulting party or the defaulting Party breaching the provisions of the CPA.
9. Notices & Domicilium
9.1 Any letter or notice given in terms of this agreement shall be in writing and shall:
9.1.1 if delivered by hand be deemed to have been duly received by the addressee on the date of delivery;
9.1.2 if posted by prepaid registered post be deemed to have been received by the addressee on the 5th (Fifth) Business Day following the date of such posting; and
9.1.3 if transmitted by facsimile or email be deemed to have been received by the addressee 1 (One) calendar day after dispatch.
9.2 For purposes of the above clauses, the contact details are:
9.2.1 The Landlord, as referred to in item 1.3 of the Schedule; and
9.2.2 The Agent, as referred to in item 1.2 of the Schedule.
9.3 Notwithstanding anything to contrary contained herein, a written notice of communication actually received by a Party shall be an adequate written notice or communication to it notwithstanding that it was not sent to or delivered to its chosen domicilium citandi et executandi.
10. General
10.1 No changes to this Mandate will be valid unless reduced to writing and signed by both Parties.
10.2 The Landlord and the Agent agree that this Mandate contains everything agreed to between them.
10.3 If any provision of this Mandate becomes or is found to be unenforceable or unlawful, the remainder of this Mandate will not be affected and the offending provision shall be severable from the remainder of the Mandate. The remaining provisions shall remain to be of full force and effect.
10.4 Not limiting the inherent jurisdiction that any other court may have, the Parties consent to the jurisdiction of the Magistrate’s Court for the purpose of any proceedings in terms of or incidental to this Mandate, notwithstanding that the amount claimed or the value of the matter in dispute may exceed such jurisdiction.
11. Special Conditions :
FICA documents to be delivered to the Agent immediately following the conclusion of this mandate
Financial Intelligence Centre Act, 2001, all accountable institutions which includes estate agents have a duty to know their clients and keep a record of the identity, address and income tax documents.
Where the landlord is a Natural Person :
• RSA ID Document/Passport
• Proof of Current Address
• Proof of SARS Income Tax Number
Where the landlord is a juristic person :
• Company Registration Document
• Resolution of Members/Directors/Trustees
• ID, Proof of address and tax number of all Members/Directors and or Trustees
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