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.
To be a sound and trusted world class regulator that is responsive to and surpasses its stakeholder expectations.
Our mission is to ensure that the integrity of the transaction between the estate agent and consumer is of a high standard by regulating, protecting, guiding and enhancing the conduct of the real estate agents’ profession in South Africa.
After comprehensive consultation and interaction with relevant stakeholders, both internal and external, within the estate agency environment, it was agreed that the following values will underscore the Board’s behaviour as it strives to achieve the ideals encapsulated in its vision and mission, namely:
- Integrity: the quality of adhering to the highest moral principles and professional standards;
- Responsibility: the authority to make decisions independently and to be accountable for actions taken;
- Excellence in service delivery: to exceed client expectations in service delivery;
- Communication: the effective exchange of information in such a manner that there is a mutual understanding;
- Participation: the involvement of all relevant stakeholders in what the EAAB does;
- Transparency: to remove all barriers to and the facillitation of free and easy stakeholder access to the boards operations;
- Professionalism: maintaining performance standards and expectations within the industry; and
- Target driven: to have an operational bias toward tangible delivery.
STRATEGIC OBJECTIVES AND GOALS
To improve compliance with the Estate Agency Affairs Act and Financial Intelligence Centre Act;
To build capacity of key stakeholders and professionalise the estate agency sector;
To ensure that that the Fidelity Fund is financially sustainable;
To ensure that the EAAB operations are efficient and effective;
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.
The following investment strategies have been identified:
Key Success Factors
STRATEGIES TO FINANCE THE OPERATIONS OF THE ORGANISATION