The Estate Agency Affairs Board (EAAB) was established in 1976 in terms of the Estate Agency Affairs Act, 112 of 1976 (“the Act”), with the mandate to regulate and control certain activities of estate agents in the public interest; and for incidental matters.
The EAAB regulates the estate agency profession by ensuring that all persons carrying out the activities of an estate agent as a service to the public are registered with the EAAB. A fidelity fund certificate, which is to be renewed each year, is issued as evidence of such registration and confirmation that such person is legally entitled to carry out the activities of an estate agent.
A core function of the EAAB is to manage and control the Estate Agents Fidelity Fund in the interest of the public and estate agents registered with the EAAB.
To maintain and promote the standards of conduct of estate agents;
- To manage the registration of qualified applications of estate agents;
- To issue fidelity fund certificates;
- To manage the educational and examination standards of the estate agents;
- To regulate the activities of estate agents;
The mandate of the EAAB is built on five key regulatory pillars, namely Registration, Education, Inspection and Investigation, Disciplinary and Claims and its industry supervisory role in terms of the Finance Intelligence Centre Act.
The core function of the EAAB is to enforce industry compliance through effective regulation. The EAAB is therefore responsible for ensuring that all qualifying estate agents are issued with a valid fidelity fund certificate (FFC) on time in order for them to trade legally.
The EAAB is also responsible for the professionalisation of the industry by ensuring that every person trading as an estate agent acquires the right qualifications as prescribed in the legislation that came into effect on 15 July 2008.
The EAAB is listed as a Public entity in terms of the Public Finance Management Act (PFMA) Act 1 of 1999.This legislation places responsibility on the Board of the organisation, as the accounting authority, to manage the resources in a manner that encourages efficiencies and accountability for the use of public funds. A key responsibility is to present to the Executive Authority with an annual Strategic plan for a rolling three year period.An additional responsibility conferred on the EAAB is to be supervisory body in terms of the Financial Intelligence Act.
Meetings of the Board
The board shall meet for the first time at a time and place determined by the Minister and thereafter at least once in each financial year at such times and places as the chairman or, in his absence, the vice-chairman may determine.
The chairman or, in his absence, the vice-chairman may at any time of his own accord or at the written request of not fewer than six members convene a special meeting of the board.
A notice convening a special meeting of the board shall state the purpose of such meeting.
The quorum for any meeting of the board shall be six members thereof.
The decision of a majority of the members of the board present at a meeting of the board shall constitute the decision of the board, and in the event of an equality of votes on any matter, the person presiding at the meeting in question shall have a casting vote in addition to his deliberative vote.
No decision taken by the board or act performed under the authority of the board shall be invalid merely by reason of a vacancy on the board or of the fact that any person not entitled to sit as a member of the board, sat as a member of the board at the time the decision was taken or the act was authorised, if the decision was taken or the act was authorised by the majority of the members of the board present at the time and who were entitled to sit as members of the board.
Staff of board and designation of inspectors
The work incidental to the carrying out of its functions by the board, shall be performed under its directions and control by persons appointed by the board on such conditions and at such remuneration as the board may determine.
The board may designate persons appointed in terms of subsection (1) and any other persons whom he may deem fit, to perform the functions of inspectors under this Act subject to its control.
Objectives of the board
Having due regard to the public interest, the objects of the board shall be to -
a) maintain and promote the standards of conduct of estate agents; and
b) regulate the activities of estate agents.
Powers of the board
The board shall, in addition to any other power conferred upon it by this Act, have the power -
a) to appoint committees, of which persons other than members of the board may with the approval of the Minister be members, to advise the board on any matter in respect of which the board possesses any power;
b) to frame and publish, with the approval of the Minister, a code of conduct which shall be complied with by estate agents and to take such steps as may be necessary or expedient to ensure such compliance;
c) to encourage and promote the improvement of the standard of training of and services rendered by estate agents;
d) to receive any application for exemption from the provisions of this Act and to submit such application to the Minister;
e) in general to take such other steps and to perform such other acts as may be necessary or expedient in order to achieve its objectives.