TRUST ACCOUNT OF AND INVESTMENT OF TRUST MONIES BY AN ESTATE AGENT
1) Every estate agent shall open and keep one or more separate trust accounts, which shall contain a reference to this section, with a bank and such estate agent or his or her employee, as the case may be, shall forthwith deposit therein all trust money held or received by or on behalf of such estate agent and the name of such bank and the number of each such trust account shall forthwith be notified to the board.
a) Notwithstanding the provisions of subsection (1), any estate agent may invest in a separate savings or other interest-bearing account opened by him with any bank, building society or any institution or class of institution designated by notice in the Gazette by the Minister in consultation with the Minister of Finance, any monies deposited in his trust account which are not
immediately required for any particular purpose.
b) Any savings or other interest-bearing account referred to in paragraph (a), shall contain a reference to this subsection.
c) Interest on monies deposited in a trust account referred to in subsection (1), and on monies invested in terms of paragraph (a), shall, subject to the express terms of the mandate in question, which shall be in writing, be paid to the fund by the estate agent concerned.
d) The board may in the prescribed circumstances refund to an estate agent a prescribed portion of the interest paid by such estate agent to the fund in terms of paragraph (c).
e) Trust money in an account invested in terms of paragraph (a) or deposited in terms of subsection (1) shall be retained by the estate agent in question in that account until the estate agent is lawfully entitled to it or instructed to make payment therefrom to any person.
3) Every estate agent shall -
a) keep separate accounting records of all monies deposited by him in his trust account and of all monies invested by him in any savings or other interest-bearing account referred to in subsection (2)(a);
b) balance his books and records relating to any account referred to in paragraph (a) at intervals of not more than one month, and cause them to be audited by the auditor referred to in section 29(b), within four months after the final date of the financial year of the estate agent concerned.
c) administer the accounts referred to in subsections (1) and (2)(a) in the prescribed manner.
4) Any auditor who does an audit contemplated in subsection (3)(b), shall forthwith after completing such audit, transmit to the board a report in the form from time to time determined by the board, in regard to his findings, and a copy thereof to the
relevant estate agent.
5) Notwithstanding the provisions of subsection (3), the board may, on good cause, at any time order any estate agent by notice in writing to submit to the board within a period stated in such notice, but not less than thirty days, an audited statement fully setting out the state of affairs in respect of the matters referred to in section 29(a).
6) The court may, on good cause, upon application by the board or any other competent person, prohibit any estate agent to operate in any way on his trust, savings or other interest-bearing account referred to in subsection (2)(a) and may appoint a curator bonis to control and administer such trust, savings or other interest-bearing account, with such rights, duties and powers as the court may deem fit.
7) If -
a) the board under the provisions of this Act -
i) refuses to issue a fidelity fund certificate to any estate agent who applied therefor; or
ii) has withdrawn a fidelity fund certificate issued to any estate agent; or
b) any estate agent ceases to act as Such; or
c) any estate agent becomes subject to any disqualification referred to in section 27, the estate agent concerned shall wind up his trust, savings or other interest-bearing account in the prescribed manner and pay out in the prescribed manner the amount
standing to the credit of any such account to the persons entitled to it.
8) The amount standing to the credit of the trust, savings or other interest-bearing account, referred to in subsection (2)(a), of any estate agent, shall not form part of the assets of such estate agent or, if he was a natural person and has died or has
become insolvent, of his deceased or insolvent estate.