Abstract
M.Com.
The purpose of this study is to consider the financial advice an
estate agent should give the purchaser and seller of a house in
order to allow the parties to have a clear understanding of the
financial implications of the sale. Entering into an agreement
of sale in respect of personal property, with specific reference
to housing, has to be one of the biggest single investments of a
person's life. Should a person make such a decision without
having sufficient advice concerning the financial implications,
making a mistake could have far-reaching results. That is why
it is in the best interests of the country that both parties
should receive comprehensive financial advice.
Not all estate agents are able to provide professional financial
advice to purchasers and sellers of houses. The main reason for
this is insufficient agent training. In addition to this,
agents are allowed to close deals between purchasers and sellers
for a year before writing an examination according to law. Purchasers
are generally uninformed about sale transactions and
what is more, usually respond to advertisements encouraging them
to purchase a home of their own at low monthly instalments. The
hidden cost items are not always revealed to the parties to a
sale agreement.
An estate agent is not an "agent" in the true juridical sense of
the word,because he cannot close a deal on behalf of his principal
(who instructs him).