Estate agent wins commission dispute after US$1,1 million property sale dispute – Nehanda Radio
BULAWAYO – A prominent Bulawayo estate agent has won a significant legal battle, with the High Court ordering Astra Building Centre, a construction company, to pay commission after finding the company attempted to bypass the agent’s entitlement in a US$1,1 million property sale.
The dispute stems from the sale of a commercial property, Stand 949 Bulawayo Township, previously owned by Astra Building Centre (Pvt). Justice Nokuthula Moyo presided over the civil trial, which centred on whether the estate agent had fulfilled its mandate.
Ken Estate Agents, represented by Masiye-Moyo legal practitioners, claimed US$62,975, representing 5% commission and VAT, for their role in introducing the Fortune Dube Family Trust as the eventual buyer.
Astra Building Centre, represented by Tanaka Law Chambers, contested the claim, arguing that a third party, Muzi Nkomo, was instrumental in finalizing the sale.
The court established that Ken Estate Agents had been granted a mandate to find a buyer and had successfully introduced the Fortune Dube Family Trust.
However, initial offers from the trust were rejected by Astra Building Centre. Subsequently, Muzi Nkomo introduced the same trust with a higher offer of US$1.1 million, which was accepted.
Justice Moyo, in his ruling, cited the provisions of the Estate Agents Act (Chapter 27:17), which defines the duties of an estate agent.
The Act states that an agent is entitled to remuneration for “bringing together the parties to the sale or proposed sale, or taking steps to bring them together” or “negotiating the terms of the sale or proposed sale.”
The court found that Ken Estate Agents had indeed introduced the buyer and that their mandate had not been formally withdrawn.
The judge dismissed Astra Building Centre’s reliance on Muzi Nkomo’s involvement, describing his role as unclear and questioning his credentials as a registered estate agent.
Justice Moyo stated that Muzi Nkomo’s involvement appeared to be a deliberate attempt to deprive Ken Estate Agents of their rightful commission.
“Firstly, it is not clear if he is a registered estate agent, his credentials were never placed before the court.
“Secondly, it is not clear whose agent he was, he just got himself into an ongoing transaction to claim its “conclusion” it seems.
“This court finds that Muzi Nkomo is a pseudo character that was just brought in by defendant and Fortune Dube onto the scene to elbow out plaintiff’s entitlement to its commission in the transaction. I say so because it is not clear where he came from, how he came in and why?
“If Fortune Dube had made an offer for US$950 000 and the defendant did not accept it, yet he had more money to offer the seller, whom he already knew, why did he need Muzi Nkomo to do that?
“Clearly, Muzi Nkomo was brought in to defeat plaintiff’s entitlement to its commission, that is why his role and scope are not clear but he suddenly should have gotten the lion’s share of the commission,” Justice Moyo stated in his judgement.
The court also noted the purchaser, Fortune Dube, attempted to interfere in the commission payment process, which further supported the claim that Astra Building Centre, with the assistance of the purchaser, were attempting to minimise the commission payable to Ken Estate Agents.
The judge ruled in favour of Ken Estate Agents, ordering Astra Building Centre to pay the claimed commission, interest, and costs of the suit.
