Fee cap on a sale
2% each side
Fee cap on a rental
8% each side
This is Part 3 of our five-part series on the Real Estate Agent Authority Act 2020 (the Act), which created the Real Estate Agent Authority (the Authority). Part 2 explained how to register.
The five-part series
- Who must register
- How to register
- The duties of a registered agent (this article)
- Commission and the agency contract
- The consequences of non-registration
Registration is the start, not the end.
The Act and the Real Estate Agent Authority (Registration and Fees) Regulations 2026 (the Registration Regulations) impose duties from the first week. The Registration Regulations contain a Code of Conduct and Practice (the Code). Breaching these duties can lead to fines, discipline and loss of the certificate.
Contracts and fees
An agent may not carry out a transaction for a client without a written contract. The contract must name the property and the transaction, state its period of validity and say whether the agent is the sole agent. Part 4 of this series looks at how the contract affects commission.
The Real Estate Agent Authority (Transaction Fees) Regulations 2026 fix maximum fees.
On a sale
2% seller, 2% buyer
On the total consideration in the deed.
On a rental
8% landlord, 8% tenant
For each of the two parties.
These are maximums, not fixed rates. The Act also allows separate fees for advice and other services.
A working checklist
- Use written contracts that meet the Act. Explain commission, marketing expenses and contractual obligations before the client signs. Advise the client to take legal or technical advice first.
- Show your full name and certificate number in every advertisement, and keep advertisements accurate.
- Display the Code in your offices and on your websites.
- Put all offers to clients in writing and keep copies for at least 12 months.
- Keep a written complaints procedure. Tell the Authority of any complaint, and its outcome, within ten working days.
- Notify the Authority within five working days of any material change in your application details, such as a change of director or beneficial owner.
- Keep accounts of receipts and expenditure for seven years after each transaction. The Authority may order an audit.
- Report any suspicious transaction to the Financial Intelligence Unit within five working days. Failure carries a fine of up to Rs 1,000,000 and imprisonment of up to five years.
- Apply to renew at least 30 days before expiry. A late renewal carries a penalty of 25% of the annual fee, plus 1% for each month or part of a month.
- Report any unlicensed practice to the Authority immediately. Do not use the services of a person who is suspended or removed from the Register.
The Act would also make the Authority the anti-money laundering supervisor, but that provision is not yet in force. The Financial Intelligence Unit remains the supervisor under the Financial Intelligence and Anti-Money Laundering Act.
Discipline
A breach of the Code is professional misconduct. Where the agent is a company, the acts of its directors and officers are treated as the company's acts.
Step one
The Authority may investigate a complaint and must report within three months of starting.
Less serious matters
A warning or severe warning.
Serious matters
May go to a Disciplinary Committee.
Outcome
A breach of the Code may lead to suspension or revocation of registration.
The Authority may investigate a complaint and must report within three months of starting. For less serious matters, it may issue a warning or severe warning. Serious matters may go to a Disciplinary Committee. A breach of the Code may lead to suspension or revocation of registration. A person aggrieved by a decision may seek judicial review.
Next in this series
Part 4 looks at commission and the agency contract.
About the author
Attorney-at-Law | SC Legal
Yeshnah practises in commercial litigation, civil law, employment law, corporate governance, transactional drafting and international commercial arbitration.
operations@scarrimlegal.com
shaheena@scarrimlegal.com
WhatsApp +230 5255 2410
See also our real estate and property practice.
This article is general information. It is not legal advice. Please take advice on your own facts.