Wakefields Real Estate (Pty) Ltd v Attree and Others

The appellant, Wakefields Real Estate (Pty) Ltd, an estate agency, introduced Mrs Fiona Howard to the property owned by Mr and Mrs Attree in Durban North during March 2005. Howard viewed the property twice through Wakefields’ agent, Ms Walker, and expressed strong interest but initially did not proceed due to financial constraints and the high asking price. Subsequently, after the Attrees reduced the price and granted a sole mandate to Remax Estate Agents, Mrs Howard was contacted by Mrs De Marigny of Pam Golding Properties, who informed her of the reduced price. An offer was prepared by Pam Golding and accepted by the Attrees. Commission was paid to Pam Golding and shared with Remax. Wakefields claimed commission on the basis that it was the effective cause of the sale. The KwaZulu-Natal High Court dismissed Wakefields’ claim, finding that Wakefields was not the effective cause of the sale. Wakefields appealed to the Supreme Court of Appeal.

The appeal was upheld with costs. The High Court’s order dismissing Wakefields’ claim was set aside and replaced with an order directing the defendants to pay Wakefields commission of R232 560 plus interest at 15.5% per annum from 11 October 2005, together with costs of suit. The cross-appeal relating to costs was dismissed with costs.

The case clarifies and reinforces South African law on when an estate agent is regarded as the effective cause of a sale in situations involving multiple agents. It confirms that the initial introduction of a purchaser to a property can constitute the effective cause even if another agent later finalises the transaction, thereby providing important guidance on commission disputes in property transactions.