Who pays the agent, and whose interests they actually represent
Understand who pays real estate agents, what duties they owe you as a buyer, and how to spot conflicts of interest before you instruct them.
You've found a property you like. The agent shows you through, smiles warmly, and says they'd love to help you make an offer. But then you wonder: if the agent gets paid when the sale closes, are they really on your side? And if so, whose side exactly are they on—yours or the seller's?
This question sits at the heart of real estate, and understanding it before you sign anything changes how you negotiate, what you ask, and who you trust.
The money flow shapes everything
In most South African property transactions, the seller pays the agent's commission—usually split between the listing agent (seller's side) and the buyer's agent (your side). This arrangement creates a structural puzzle: your agent earns only when a deal completes, and the buyer's agent and seller's agent typically split the same pool of money. Neither profits from a higher sale price or a lower one; they profit from a completed sale.
That's the first thing to grip: your agent does not benefit financially from negotiating you down. But they also don't benefit from walking away if the price creeps too high or the property has problems. Their incentive is closure, not outcome in your favour.
Some agents work on flat fees or hourly rates instead, which removes the completion-dependent dynamic. Others may represent the buyer under a separate buyer's agent agreement, creating a clearer boundary. These arrangements are less common but worth asking about.
Whose interests are actually represented
When an agent represents you as a buyer, they owe you fiduciary duties—meaning they must prioritise your interests over their own and keep your financial information confidential. They cannot disclose to the seller that you're willing to pay more, that you're desperate to buy, or that you have finance approval for a higher amount. They cannot pressure you into an offer you don't want.
But this duty has real limits. Your agent may also represent multiple buyers looking at the same property, or they may have listed other properties in the area—these are not breaches if disclosed. More commonly, the pressure is subtle: an agent might emphasise urgency (other buyers are interested), downplay problems (the crack is cosmetic), or nudge you toward an offer that's likely to be accepted rather than one that protects your budget.
The key is understanding they cannot be on both sides at once. When your agent also represents the seller—or shares office space and commission splits with the seller's agent—conflicts of interest exist, and you need to know it before you instruct them.
What to confirm before you move forward
Before you let an agent represent you, ask these things directly:
- Are you representing the seller on this property, or any other property I'm interested in?
- If you're not the listing agent, what is your agreement with the listing agent or the agency that listed it?
- Will you disclose to the seller's agent anything I tell you about my budget, my timeline, or my motivation?
- If I ask you to negotiate on my behalf, will you present my offer as written, or will you shape how you present it?
- Are you paid only on completion, or do you work on a different fee structure?
You're not being rude. You're being clear-eyed. A good agent will answer these without defensiveness.
Once you're confident about the structure and the agent's legal duties to you, representation becomes practical. Your agent cannot eliminate the inherent tension of a completion-based fee, but they can be transparent about it, and they can demonstrate through their questions and advice that they're thinking about your position—not just the deal.
When you're ready to instruct an agent, look for one who listens more than they pitch, asks about your constraints and priorities, and explains the trade-offs in options they suggest. On Strove, you can read verified reviews from other buyers they've represented and check their registration details. That evidence, combined with your own assessment, gives you the confidence to move forward knowing where the incentives really lie.
Common questions
- If the seller pays the agent's commission, does that mean the agent works for the seller?
- Not necessarily. Commission source and representation are separate. Your agent can be paid from the seller's pool while owing legal duties to you as their client. However, if the same agent or agency represents both buyer and seller on the same deal, a conflict exists that must be disclosed. Always confirm who your agent represents before instructing them.
- Can an agent represent both me and the seller on the same property?
- Only with full written disclosure and informed consent from both parties. This is a dual agency arrangement and creates inherent conflicts—the agent cannot advocate equally for both sides. Most buyers find it safer to instruct an agent who represents only them on that transaction.
- What should I do if I suspect my agent is prioritising a quick deal over my interests?
- Ask direct questions about their reasoning for any advice (why they think this offer will be accepted, why they're recommending you bid higher than planned). If they can't explain without pressure, seek a second opinion or consider instructing a different agent. Your agent should always prioritise your stated budget and conditions over deal closure.
- Are there alternatives to the standard commission structure?
- Yes. Some agents work on flat fees, hourly rates, or percentage-of-savings models. These are less common but worth asking about, as they can align incentives differently. Discuss fee structures upfront with any agent you're considering.
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