Making Property Regulation Accessible to All
ISSUING OF FIDELITY FUND CERTIFICATE
Any person intending to practise as an Estate Agent in the course of that financial must apply to the Board to be issued with a valid Fidelity Fund Certificate for the rest of that financial year. Valid Fidelity Fund Certificate are also issued to the following persons:
• Any existing estate agent intending to continue as a legally registered estate agent
• Any estate agent who wishes and qualifies to be a full status and a principal estate agent,
• Any person who is a full status agent and wished to open up an estate agency firm
• Any Attorney who wishes to act as an estate agent under the attorney act.
In order to apply for registration with the EAAB to be issued with a valid Fidelity Fund Certificate, the estate agent must supply the following:
For Individual application:
• A fully completed and signed application forms
• Certified I.D copy, or
• Certified copy of passport if not a South African
• Valid work permit if not a South African
• Letter of employment signed by the Principal of the firm confirming employment of the
• Required payment
• Certified I.D copy or Copy of passport and work permit if non Southern African
• Ck document if it’s a cc and Cm document if it’s a company
• Letter (Partnership) of agreement
• Bank Letter confirming that the trust account has been opened, in terms of section 32(1) of Act 112 of 1976
• Auditor’s Letter (auditor must be registered with the IRBA)
• Letter of franchise if applicable
• Required payment
It is a requirement that all foreign national applying to the Board to be issued with a valid Fidelity Fund Certificate submit together with their applications valid work permit clearly indicating their involvement in the sales or dealings of property.
THE EAAB EDUCATION FRAMEWORK
The new outcomes-based educational framework for estate agents which came into operation on 15 July 2008 ensures that theory and practical experience complement one another to provide a head start to success by introducing newcomers as painlessly as possible to the exciting new career that awaits them.
INTERN ESTATE AGENTS
• All new estate agents must serve a compulsory one-year internship period under the supervision of a qualified estate agent with three years of practical experience.
During the internship, the intern is required to:
• Keep a logbook (‘Portfolio of Evidence’) reflecting their activities during the internship period.
• Complete the Further Education and Training Certificate: Real Estate.
Interns may be certified after being trained through an accredited education provider or by way of the Recognition of Prior Learning route.
The completion of the Further Education and Training Certificate: Real Estate or the National Certificate: Real Estate is a prerequisite for admission of the estate agent to the Professional Designation Examination (“PDE”).
New entrants wishing to act as principal estate agents must be certified against the National Certificate: Real Estate.
THE PROFESSIONAL DESIGNATION EXAMINATION
The PDE is the final test of the estate agent’s ability. Successful candidates will be awarded a certificate of professional recognition by the Board.
A continuing development programme will also be implemented.
THE DISCIPLINARY PROCESS
LODGING OF A COMPLAINT AGAINST AN ESTATE AGENT
In order to lodge a complaint against an estate agent:
• The complaint must submitted be in writing
• The full particulars of both parties must be supplied
CONSIDERATION OF COMPLAINT AND INVESTIGATION
Once the complaint has been lodged, the Board will:
• Acknowledge receipt of the complaint
• Notify the complainant with a written response within thirty days.
• The matter shall be considered by the Board.
The Board may decide to:
• Investigate further,
• Withdraw the charge,
• Mediate between the complainant and the agent, or
• Charge the agent.
CHARGE AGAINST AN ESTATE AGENT
A charge filed against an estate agent must:
• Be in writing
• Contain an exposition of the agent’s conduct.
• Be delivered by hand or through registered post.
Disciplinary Committee of Inquiry:
• Summonses and subpoenas will be sent to the relevant parties.
• The Chairperson and two committee members will conduct the proceedings.
• The case presenter or prosecutor will present the cases.
• Legal representation is permitted.
DECISIONS OF THE DISCIPLINARY COMMITTEE
If the Committee finds the agent guilty as charged:
• The agent will be subject to a reprimand and a fine
• A compensatory award of up to eighty per cent of the fine imposed may be awarded
• The agent’s Fidelity Fund Certificate will be revoked.
If the accused wishes to appeal:
• The appeal must be delivered in writing within 30 days of the inquiry.
• A deposit of R1 000 is required for the transcript.
• The disciplinary committee will provide written reasons for the judgement.
Once the appeal has been reviewed, the Board may:
• Confirm, amend or reverse the decision
• Remit the matter for further hearing
• Confirm or suspend the penalty imposed, or
• Revise the penalty;
If the appeal is successful, the deposit of R1 000 will be refunded in full.
INSPECTIONS AND THEIR FOCUS
• Validating the agent’s Fidelity Fund Certificate. [Section 26]
• Reviewing the agent’s account audits. [Section 29 read with Section 32];
• The EAAB may order an estate agent to submit an audited statement.
GENERAL FINDINGS FROM INSPECTIONS
• Typical findings following an inspection:
• Trust accounts not properly designated.
• The audit reports submitted did not reflect the correct position of the business.
• Estate agent/agent/branch operating illegally
• Improper conduct where practices which obviously contravene the Code of Conduct
THE CLAIMS PROCESS
THE ESTATE AGENTS FIDELITY FUND
Monies paid to the Fidelity Fund include:
• Annual contributions
• Income derived from investments
• Monies recovered on behalf of the fund
• Interest paid according to section 32(2)(c) of the Act
• Any other money accruing to the fund.
CLAIMS AGAINST THE FUND
A claim must be submitted within three months of the claimant becoming aware of loss.
• The claimant has six to furnish the proof required.
• The claimant must pursue all other rights of action and legal remedies
• Claims are submitted to the Claims Committee for recommendation to the Board.
RECOVERIES AND LITIGATION
RECOVERIES – CIVIL PROCEDURE
The Board is responsible for rectifying the actions of an estate agent or agency’s malpractice. This includes reimbursing buyers who have suffered losses due to an estate agent's actions.
• All claims and fines must be submitted to the Recoveries section of the Compliance Department.
RECOVERIES – CRIMINAL PROCEDURE
• Confirmed theft of trust monies will be reported to the SAPS.
• If guilty, a compensatory award may be granted to the plaintiff in favour of the Board.
LITIGATIONS FOR OR AGAINST THE BOARD
• The process of litigation for or against the Board must be handled through an external attorney.