Only Licensed Estate Agents Can Claim Commission
By Dickson Jere
The owner of prime property in Eureka area of Lusaka was looking for buyer. He engaged the Estate Agent to find buyer for the property. However, a friend of the Estate Agent somehow found the buyer of the property for USD 580,000. The two agreed to share the commission once paid.
After the deal was closed, the Estate Agent was paid his commission. He then took out USD 2,000 and paid his friend as “goodwill” for assisting him find a buyer. His friend was livid. He demanded to be paid USD 13,000, which he claimed was agreed orally between the two. The Estate Agent refused to pay.
The dispute escalated to the Subordinate Court. The Estate Agent was sued for the payment of USD 13,000 which was “agreed” between the two.
After hearing both sides, the Magistrate found as a fact that the Plaintiff (person who sued) was not a registered and licensed Estate Agent under the Zambia Institute of Estate Agents (ZIEA) and therefore not allowed to share profits on such transactions.
“Payment of commission or a share to an unlicensed third party for introducing a purchaser would amount precisely to such prohibited considerations,” the Court ruled.
“The regulatory scheme clearly intends that only licensed estate agents may lawfully earn commission for estate agency work,” the Court said.
The Court noted that even if the existence of such agreement was proved in Court, it can still not be enforced because it was an illegal arrangement.
“Courts cannot lend their aid to the enforcement of an unlawful bargain,” the Magistrate said, adding that the estate agent can be in trouble with ZIEA if he shared the commission with unlicensed persons.
Case citation – Kennedy Fataki v William Zimindo – 2025/CRMP-3355.
Lecture Notes;
1. This case underscores the long-held legal principle that Courts do not enforce illegal contracts. In this case, section 17 of the Estate Agents Act of 2000 and the Estate Agents (General) Regulations, 2026 only allow licensed agents to directly or indirectly earn commission from the estate business.
2. If you are in business of selling and buying property as an agent, make sure you are properly registered and licensed with ZIEA and have a valid certification.
