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. 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.
THE MANDATE OF THE EAAB
The primary mandate of the EAAB
(a) Regulate, maintain and promote the standard of conduct of estate agents having due regard to the public interest;
(b) Issue Fidelity Fund Certificates to qualifying applicants;
(c) Prescribe the standard of training of estate agents;
(d) Investigate complaints against estate agents and institute disciplinary proceedings against offending estate agents where required; and
(e) Manage and control the Estate Agents Fidelity Fund;
Additional to primary mandate of the EAAB
Financial Intelligence Centre
The EAAB is the Supervisory Body of the estate agency profession pursuant to the Financial Intelligence Centre Act and is obliged to take all steps required to prevent, alternatively, identify and report on, money laundering and terrorist financing activities in the estate agents’ sector.
The expanded mandate of EAAB in respect of National Development Plan 2030 Vision and Trajectory is reflected in outcome number 8, which refers to sustainable and improved quality of household life. With respect to MTSF sub-outcome 2, the department of human settlements is required to ensure a sustainable residential property market. Based on this governmental strategic priority, EAAB recognises its role in supporting the following:
- Intensify homeownership induction programmes for the affordable housing market
- Establish transactional support for affordable housing market
- Monitor and reporting transactions in the secondary housing subsidy market
- Conduct analysis and disseminate information on property trends and values in the affordable housing market
- Develop policy and administration systems that support individual transactions in the secondary housing market
- Facilitate the regular backlog of title deeds to form part of the housing development.
Our Vision is that of a transformed, professional and well-regulated real estate sector in a spatially integrated society.
Protect - Through education, awareness, building and information sharing, we strive to protect the interests and dignity of the property consumer public and their security of tenure.
Regulate - We regulate the property profession by establishing norms and standards, educating, licensing, the enforcement of regulations and standards for industry role-players and the administrationof the fidelity fund.
Transform - As the leaders of the sector, we drive the transformation of the property market to facilitate equitable economic growth through broad participation.
The following values will underscore the Board's behaviour as it strives to achieve the ideals encapsulated in its vision and mission, namely:
- Integrity: We pledge adherence to the highest moral principles and professional standards through mutual respect amongst us, our shareholders and our stakeholders;
Excellence: We commit to, at all times acting professionally, delivering on our mandate and exceeding the expectations of our shareholder and all the stakeholders we serve;
Communication: We accept the responsibility of enabling and facilitating a free flow of information between ourselves and all our shareholders and stakeholders, especially the public, and to respecting their views at all times;
Transparency: We declare for all to know that, as a matter of principle, our interactions with all our shareholders and stakeholders, will be conducted in an open fashion and that we will be accountable for our actions;
The EAAB is a schedule 3A public entity in terms of the Public Finance Management Act, 1 of 1999. The EAAB must always remain aware of, and comply with, legislation impacting on its functioning. Other relevant legislation includes, but is not limited to:
- The Constitution of the Republic of South Africa
- The Estate Agency Affairs Act, 112 of 1976
- The Public Finance Management Act, 1 of 1999
- The Preferential Procurement Framework Act, 5 of 2000
- The Financial Intelligence Centre Act, 38 of 2001
- The Labor Relations Act, 66 of 1995
- The SA Qualifications Authority Act, 58 of 1995 and
- The Skills Development Act, 97 of 1998
- The Promotion of Administrative Justice Act, 3 of 2000
- The Promotion of Access to Information Act, 2 of 2000
- The Prevention of Corrupt Activities Act,12 of 2004
- Protection of Personal Information Act, 4 of 2013
- Sectional Title Schemes Management Act, 8 of 2011
- The National Credit Act, 35 of 2005
- The Consumer Protection Act, 68 of 2008
- Community Services Ombud Services Act, 9 of 2011
- Broad Based Black Economic Empowerment Act, 53 of 2013
Section 32A of the Estate Agency Affairs Act was replaced as unconstitutional on the 26th of February 2016. There were no further changes to the legislative mandates. It should, however, be noted that the EAAB, along with the Department of Human Settlements, are in the process of preparing the Property Practitioners Bill for promulgation which, when concluded, will repeal the current Estate Agency Affairs Act.
INTERNATIONAL RELATIONS PROGRAMME AND STRATEGY
A critical role in ensuring a positive regulatory environment to manage the risk to encourage foreign direct investments. The EAAB activities also assist government in managing the risk of money laundering through property transaction.