ESTATE AGENTS

PROFESSIONAL CONDUCT RULES

THIS DOCUMENT IS A CONSOLIDATION OF STATUTORY INSTRUMENT 200 OF 1987 AND ITS

AMENDMENTS.
The consolidation was done by Mr Guy Pocock of Bulawayo and his generosity in making it available to Council is
acknowledged.

In 1996 a Revised Edition of Laws was published in which all acts were themselves re-numbered and some
received an internal re-numbering of some sections. This applied only to Acts, the subsidiary legislation, the
Statutory Instruments, were left unchanged.

The Estate Agent Act was Chapter 27:05 and has become Chapter 27:17

The original Act and Section numbers are used throughout this document but to assist with references, the
schedule below relates the original to the new numbers. [The first column shows the place in the rules, the
next the reference there shown and finally, the new reference, e.g Line 5of the schedule reads 2 “agent” (b)
55 53 which indicates that in Section 2 at the definition of “agent” (b) the reference to section 55
in Chapter 220 will be section 53 in Chapter 27:17 of the Revised Edition.

Schedule

Section where found number shown new number

Preamble (7) (8)
Preamble 53 51
Preamble Chapter 220 Chapter 27:05
2 “Agent” (b) 55 53
2 “deed of sale” Chapter 139 Chapter 20:05
3 28 29
4(2) 55 53
6(5) Chapter 12 Chapter 7:02
11(b) Chapter 139 Chapter 20:05
17(2)(d) Chapter 303 Chapter 6:04

WARNING
The Statutory Instruments referred to herein are published by and available from the Government Printer.
This transcription has been prepared only as an aid to reference and has been circulated by Council to assist
registered firms but it is not intended to be a replacement of the legislation. Care has been taken to eliminate
error but it is the responsibility of each user to check against the original Statutory Instruments. Estate Agents
Council accepts no liability arising from errors in or the use of this transcription.
 STATUTORY INSTRUMENT 200 OF 1987
[As amended by S.I.’s 72/1988, 130/1989, 131/1991, 360/1991, 169/1992 and 407/1992]
(CAP.220)

Estate Agents (Professional Conduct) Rules. 1987

ARRANGEMENT OF SECTIONS

Section
1 Title
2 Interpretation
3 Appliance
4 Compliance with rules
5 Requirement of good faith
6 Conduct of agents towards each other
7 Conduct of agents towards clients and public generally
8 Posing as purchaser
9 Sole agency where other agents already appointed
10 Acting for prospective purchaser or tenant
11 Protection of purchaser’s interest in deed of sale
12 Share transactions
13 Conclusion of agreements
14 Fees and commission
15 Advertising
16 Property negotiators
17 Disgraceful conduct
18 Savings.

It is hereby notified that the Minister of Justice, Legal and Parliamentary Affairs has, in terms of section 60
of the Estate Agents Act (chapter 27.17), approved the following rules made by the Estate Agents Council.

Title

1 These rules may be cited as the Estate Agents (Professional Conduct) Rules, 1987.

Interpretation
2 In these rules-
“agents” means-
(a) An estate agent registered in terms of the Act;
(b) A company or a partnership practicing or carrying on business as an estate agent in terms of
section 62 of the Act;

“agreement of sale” includes a deed of sale;

“deed of sale” means an agreement of sale by installments described in section 62 of the Deeds
Registries Act (Chapter 139), whether or not it is endorsed in terms of that section.

[‘agreement’ and ‘deed of sale’ definitions inserted by S.I 131/1991]

1.
 “owner” means –

(a) The person registered as the owner of the immovable property concerned at the Deed Registry;
or

(b)
Where the immovable property concerned is-

(i) Owned by a person whose estate is insolvent or is being wound up by a liquidator. Or

(ii) Owned by a person who has died or is a minor or of unsound mind or otherwise under
disability; or

(iii) The subject of a judicial sale;

The trustee, liquidator or creditor, as the case may be, or any duly authorized representative of
such person; or

(c) The purchaser under a deed of sale who is authorized by such deed or in writing by the owner
referred to in paragraph (a) or (b) to dispose of the property in any way, including the further
sale thereof;

(d) In the case of unregistered land, the State.

[‘owner’ inserted by S.I 130/1989 and amended by S.I 131/1991]

Application

3 These rules shall apply to all agents and, for the purpose of section 60 of the Act, to any
person employed by them.

Compliance with rules

4 (1) An agent shall ensure that these rules are complied with and in the case of any
contravention of these rules by his employee, partner or co-director, he shall be held personally
liable unless-

(a) he proves to the satisfaction of the Council that he took all reasonable steps to prevent such
contravention; or

(b) the person who contravened these rules was himself an agent at the time of the contravened.

(2) in the case of a company or partnership practicing or carrying on business as an agent, the
Principal or assistant referred to in section 55 of the Act shall be answerable to the Council for
the purposes of the section.

Requirement of good faith

5. An agent shall act bona fide and in a fiduciary manner towards all persons with whom he has dealings
in his professional capacity.
 2.
Conduct of agents towards each other

6 (1) An agent shall not defame another agent nor act towards him in a manner that is inconsistent with
fairness or strict professional courtesy and integrity.

(2) An agent shall not-

(a) seek any information concerning the particulars of a mandate given to another agent;

(b) if any information referred to in paragraph (a) becomes known to him, use such information to
supplant the other agent concerned or otherwise derive some personal advantage from it.

[Section amended by S.I 131/1991]

(3) An agent shall not solicit the services of an employee of another agent.

(4) [Repealed by S.I 131/1991]

(5) Where a professional dispute arises between agents, the agents concerned shall in the first instance
submit their dispute for arbitration in accordance with the Real Estate Institute of Zimbabwe
Arbitration Rules or, if either of the agents concerned objects to these Rules, in accordance with the
Arbitration Act [Chapter 12].

Conduct of agents towards clients and public generally

7(1) An agent shall give his clients the benefit of his professional knowledge and experience and shall act
in their best interest.
(2) When a person carrying on business as an agent is employed –

(a) to sell, let or otherwise dispose of immovable property, no agent, director, partner or employee of
that business shall-

(i) purchase, lease or acquire any interest in that immovable property for himself or any
company, partnership or anybody in which he has an interest; or

(ii) sell, let or otherwise dispose of that immovable property to

A. any other agent, director or employee of that business or a member of his family; or

B. any company, partnership or other body in which he or a person specified in

subparagraph A has an interest;

(b) to purchase or lease any immovable property on behalf of any person, no agent, director, partner or
employee of that business shall sell, let or otherwise dispose of any interest in immovable property
to such person in which-

(i) he or a member of his family; or

(ii) any other agent, director, partner or employee of that business or a member of his family;
or
 3.
(iii) any company, partnership or other body in which a person specified in subparagraph (i) or
(ii);

has an interest;

without first declaring his personal or other interest in writing to all parties to the contract;

[section amended by S.I 131/1991]

(2) An agent who inquires after a property seeking to buy or rent it for himself shall not thereafter seek
or accept any mandate to sell, lease or otherwise dispose of that property on behalf of another
person within a period of six months from his initial inquiry if, at the time of such inquiry, another
agent held the mandate to sell or lease the property in question.
[section added by S.I 131/1991]

(3) An agent shall not tout for business by way of circular letters or door to door canvassing.

(4) An agent shall not offer any inducement whatsoever to any person to secure instructions, or for
information in respect of property for sale.

(5) An agent shall refuse to act as agent and refrain from accepting or demanding commission in
respect of any transaction in which he has reasonable cause to believe that either of the parties
concerned will be unable, financially or otherwise, to meet his obligations in terms of any contract
likely to result there from.

(6) An agent shall not offer to sell or let, or attempt to enter, any property without the authorization of
the owner or his appointed agent.

(7) Where a person makes an offer to buy or lease a property in respect of which an agent has a
mandate to sell, lease or otherwise deal with the property, an agent shall, unless his mandate
specifically authorizes him in writing to do otherwise-

(a) communicate the offer to his principal as soon as practicable, and

(b) not accept the offer on behalf of the principal before the principal [has] indicated his acceptance
of it.

(8) An agent shall not disburse any money deposited in a trust account-

(a) in respect of the sale or other disposition of land prior to the fulfillment or contrary to the terms
of the contract for such sale or disposition:

Provided that this paragraph shall not prevent the disbursement of a deposit or installment made
pursuant to a deed of sale, subject to the fulfillment of any condition that may be provided in
the agreement for its disbursement;

(b) to a seller in respect of a sale of land-

4.
 (i) that is owned by the State or a local authority, or in respect or which the State or
local authority has a right of first refusal or any other right or claim, before the State or
local authority concerned signifies in writing to the agent that it approves of the sale;

(ii) that is subject to registered bond, caveat or deed of sale unless the agreement of
sale carries a clause, endorsed by each party to the agreement, acknowledging the
existence and purport of such bond, caveat or deed of sale, and providing for its
cancellation or the fulfillment of the obligations attaching to it;

(iii) Other than a sale of land under a deed of sale, prior to the registration of the
transfer of ownership in that land;

Provided that this subparagraph shall not prevent the disbursement before such
registration.
A. to a seller where the purchaser so consents in terms of a clause in the agreement of sale
of or an addendum to the agreement to which the purchase has especially appended his
signature or initials; or

B. to the legal practitioner of the seller to hold in trust pending such registration.

[Section 7 amended and added by S.I 131/1991]

Posing as purchaser

8. An agent shall not pose, nor engage anyone else to pose, as a prospective purchaser of property in
order to elicit information concerning that property from another agent, or from a member of the
public, nor shall he endeavour to obtain information from other agents or members of the public in
any deceitful or dishonest manner whatsoever.

Sole agency where other agents already appointed.

9.(1) In this section-

“business days” means all days of the week excluding Saturday, Sunday and public holidays;

“special promotion” means any advertisement in the form of an open day, wheresoever located,
held for the purpose of attracting prospective purchasers of immovable property.

(2) Where a prospective seller of immovable property has appointed more than the agent, no agent
shall be entitled to hold a special promotion in respect of that property unless he is so authorized in
writing by the seller for a period not exceeding seven business days.

(3) An agent authorized in terms of subsection (2) shall give written notification by hand to any other
agent who acts for the prospective seller of the suspension of the latter’s mandate not later than four
business days before the commencement of the special promotion.

(4) An agent whose mandate is suspended in terms of subsection (3) shall not be entitled to any
commission from the sale of the property in respect of which he had previously been the agent
unless-
5.
 (a) he concludes the sale thereof within the four days referred to in subsection (3); or

(b) the agent authorized in terms of section (2) failed to give notification in terms of subsection (3);

in which case the first-mentioned agent shall be entitled to the whole commission from the sale.

(5) An authorization in terms of subsection (2) shall not be renewable under any circumstances.

[Section repealed and replaced by S.I 130/1989]

Sole agency

9A. No advertisement indicating that an agent is in possession of a sole agency shall be published
unless the agent has a written mandate conferring a sole agency upon him.

[Section 9A added by 131/1991]

Ascertainment of agency

10(1) Subject to this section, no agent shall seek or accept a mandate from a person in respect of a
property for which he knows or has reason to believe that a mandate of the same nature has already
been granted to another agent, unless-

(a) the agent is offered the mandate without having sought it; and

(b) the person offering it has withdrawn any sole mandate in respect of the property.

(2) Where an agent receives an instruction from a prospective purchaser or tenant to endeavour to
purchase or hire property in respect of which the agent does not have a mandate to sell or lease, the
agent shall –

(a) make known to the prospective purchaser or tenant that he shall be liable to meet all costs,
including agents commission or negotiating fee, unless the owner agrees to share or meet these
expenses; and
(b) approach the owner or lessor and inquire whether he has appointed an agent with a mandate to
sell or lease the property concerned, as the case may be, and where –

(i) the owner or lessor confirms that no other agent has been appointed to sell or lease
the property concerned, as the case may be, the agent may negotiate the purchase
or lease of that property directly with the owner or lessor; or

(ii) the owner or lessor advises that he has appointed an agent or more than one agent
to sell or lease the property, as the case may be, the agent who is the subject of this
Section shall negotiate the sale or lease of the property-

A. through the appointed agent; or

6.
B. where there is more than one such appointed agent, through the agent
nominated by the owner or lessor or, failing such nomination, through any one
 such appointed agent.

(3) For the purpose of negotiating with another agent in accordance with subparagraph (ii) of paragraph
(b) of subsection (2), an agent shall obtain a prospective purchaser’s or tenant’s instruction in
writing or accept the instruction by notification in a registered letter.

(4) Where an agent opens negotiations with another agent referred to in subparagraph (ii) of paragraph
(b) of subsection (2), and he has reason to believe that the agent concerned is not conveying the
terms of his offer timeously or efficiently, he-

(a) may convey his offer directly in writing to the owner or lessor, giving reasons why he chose to
deal directly with the owner or lessor; and

(b) shall, at the same time that he proceeds in terms or paragraph (a), send a copy of the offer to the
other agent.

(5) Where an agent seeks to secure a mandate to sell, lease or manage a property, he shall first inspect
the property to establish whether there are any ‘For Sale’ notices or any other notices indicating that
the mandate in respect of that property is held by another agent.

(6) Subject to subsection (7), an agent shall cease to make any further inquiry to secure a mandate in
respect of a property-

(a) that is affected by a notice referred to in subsection (5); or

(b) during the period for which, to the knowledge or belief of the agent, another agent holds the
mandate in respect of the property.

(7) If-

(a) to the knowledge of the agent, the mandate of the other agent indicated by a notice referred to
in subsection (5) has been terminated; or

(b) the mandate sought by the agent is different from that held by the other agent;

the agent may make further inquiry to secure a mandate in respect of the property-

(i) upon obtaining written confirmation from the date when the agent of either of the facts
referred to in paragraph (a) or (b); or
(ii) after a period of seven days from the date when the agent sought the confirmation referred
to in subparagraph (i) and has not received it.

[Section 10(1) to (7) amended by S.I 131/1991. Section 10(6) and (7) amended by S.I 169/1992]

Protection of purchaser’s interest in deed of sale

7.
11. In any purchase by way of deed of sale, an agent shall bring to the attention of the purchaser-
 (a) the mortgagee’s rights in respect of the property; and
(b) the protection that can be afforded the purchaser by endorsing the title deed of the property as
provided in the Deeds Registry Act (Chapter 139), in the event of the insolvency or liquidation
of the seller.

[Section amended by S.I 131/1991]

Share transaction

12. An Agent who negotiates a sale of property by transfer of shares shall-

(a) arrange for the final contract of agreement to be prepared by a legal practitioner or Chartered
Accountant or a member of the Institute of Chartered Secretaries and Administrators; or

[Chartered Secretary inserted by S.I 130/1989]

(b) ensure that any agreement to be entered into is sufficiently detailed so as to record all the terms
agreed by the parties, including safeguards for the protection of both parties due to the peculiar
nature of the sale.

Conclusion of agreements

13. An agent shall-

(a) as far as practicable, in concluding an agreement of sale or lease-

(i) seek to have the agreement signed expeditiously by both parties;

(ii) secure the purchaser’s or lessee’s signature before requesting the seller or lessor to
sign;
and;

(b) on the conclusion of an agreement of sale or lease, or as soon as possible thereafter, make
available to each of the parties concerned a copy of their agreement.

Fees and Commission

14(1) An agent shall charge the appropriate fee in accordance with the minimum scale of fees set out in
the Schedule unless, on acceptance of the mandate, he advises his client that a higher fee than that
contained in the Schedule is to be charged, and his client, in writing-

(a) agrees to such higher fee; and

(b) acknowledge the fact that such fee is above the minimum scale laid down;

Provided that the client concerned shall be deemed to have agreed to and acknowledged the matters
referred to in paragraphs (a) and (b) if, on the acceptance of the mandate from the client the agent-

(i) bring to the attention of the client the fact that the fee charged by the agent is
higher than that provided for in the Schedule; and
8.

(ii) notifies the client by registered letter of the fact referred to in subparagraph (i);
 [Section amended and proviso added by S.I 130/1989]

(2) An agent may, with the written consent of his client, charge a fee higher than, or additional to, that
agreed at the time of accepting the mandate if, during the fulfillment of his mandate, any extra
expense is incurred or additional service is rendered that was not contemplated at the time the
mandate was accepted.

(3) Subject to subsection (4), where the Schedule referred to in subsection (1) prescribes a fee for any
service provided by an agent, or for any expense incurred by him, the agent shall not-

(a) charge less than such fee; or

(b) waive payment of such fee in circumstances where it becomes payable.

(4) An agent may, with the consent of the Council, waive in whole or in part any fee prescribed in the
Schedule for services rendered or expenses incurred on behalf of a religious, charitable or other
body or organization approved by the Council.

(5) An agent shall not share commission with any person who is not an agent unless such person is
employed by him or is otherwise engaged in his practice.

(6) In an agreement of sale in which it is stipulated that the purchaser shall pay the agent’s commission,
the amount payable-

(a) to the agent as commission; and

(b) to the seller less the agent’s commission’ shall be disclosed-

(i) in the agreement of sale; or

(ii) by the agent to the seller in writing;

and subsection (i) shall apply as if the purchaser were the client of the agent.

[Subsection 5 amended by S.I 131/1991]

(7) No agent shall receive commission from both the seller and the purchaser in respect of the same
transaction unless the agent obtains from them prior written agreement to that effect.

(8) In this section, ‘fee’ includes any charge for out-of-pocket expenses prescribed by the scale referred
to in subsection (1)

Advertising

15(1) An agent shall ensure that all advertisements in any media are restrained, dignified, factual and in
no way likely to bring [the] profession into disrepute.

(2) An advertisement by an agent in any media shall include the name and style of his practice.

(3) An advertisement by an agent shall not be permissible if it contains-

9.

(a) any comparisons with other agents;

 (b) inducements in contravention of these rules;

(c) a photographic display of any principal, assistant, property negotiator, associate or member of
staff in the practice of an agent.

(4) Subject to the consent of the parties concerned, an agent may, under the name of his practice,
publish in a newspaper a short factual statement of a sale of property he has transacted.

(5) An agent or any person employed by him may-

(a) consent to be interviewed in his professional capacity by any media;

(b) publish an article in a non-professional journal or newspaper bearing either his professional
designation or his name;

(c) write a letter in his personal capacity for publication in a non-professional journal or newspaper
bearing either his professional designation or his name;

Provided that the name of his practice or of his employer, as the case may be, shall not be
mentioned.

(6) An agent shall not, under his name or that of his practice, circulate free copies of property market
reports or other articles on professional subjects except to his clients or at the specific request of
other persons.

(7) An agent shall not place any “For Sale of “Sold” notice on any property without the consent of the
owner thereof.

Property negotiators

16. An agent shall only employ a person as a property negotiator who is regularly engaged on a
full-time, mornings-only or afternoons-only basis, and such person shall conduct his business from
the registered offices of the agent.

Disgraceful conduct

17(1) An agent who contravenes or attempts to contravene or fails to comply with any of the provisions
of these rules shall be guilty of disgraceful conduct for the purpose of Part IV of the Act.

[Section amended by S.I 131/1991]

(2) For the purpose of Part IV of the Act, the following acts shall, in addition constitute disgraceful
conduct on the part of the agent-

(a) engaging in any business practice that brings or is likely to bring discredit to the profession of
estate agency;

10.
 (b) the commission of any act of professional negligence;

(c) conviction of an offence of such a nature as would, in the opinion of the Council, bring
discredit to the profession of estate agency;

(d) the commission of an act of insolvency in terms of the Insolvency Act (Chapter 303), unless the
agent can show that his insolvency was caused by circumstances beyond his control’

(e) contravention of any provision of the Act, or of any by-law, rule, regulation or order made in
terms of the Act.

(f) failure to reply fully in writing within fourteen days, or such longer period as the Council may
grant at the request of the agent concerned, to any correspondence addressed to an agent by the
Council that requires a reply.

[Paragraph (1) added by S.I 130/1989]

18. Nothing in these rules shall prevent the Council from taking action against an agent in respect of an
act committed before the date of commencement of these rules which constitutes an of disgraceful
conduct in terms of these rules.

11.