The Estate Agency Affairs Board (EAAB) was established in 1977 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 through 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 a Fidelity Fund, the Estate Agents Fidelity Fund (Fidelity Fund), in the interest of the public and estate agents registered with the EAAB.
Enforcement Department is responsible for Inspections and Investigations, Disciplinary and Claims. The core function the EAAB is to enforce industry compliance through effective regulation. The EAAB is therefore responsible for ensuring that all 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 the 15 July 2008.
To ensure full compliance with the Estate Agency Affairs Act of 1976, the EAAB must conduct regular inspection of all registered estate agents. Failure to comply with the regulatory requirements will lead to an estate agent being taken through a disciplinary process. The EAAB is empowered by law (Act 112 of 1976) to protect consumers against unscrupulous estate agents and those agents who generally do not follow the code of conduct. Therefore, the EAAB has the responsibility to process all claims lodged against the Fidelity Fund by members of the public as a result of misconduct by estate agents.
The Estate Agency Affairs Board (EAAB) has with effect from 17 May 2012 been relocated from the Department of Trade and Industry to the Department of Human Settlements which will, henceforth, be the Executive Authority of the EAAB. This move, which has been in the offing, for some time, is welcomed by the EAAB which hopes to cement fraternal ties...
It may, at the outset, be recorded that the Estate Agency Affairs Board (EAAB) was, with effect from 17 May 2012, relocated from the Department of Trade and Industry to the Department of Human Settlements which now constitutes its Executive Authority. It should be emphasised, furthermore, that the EAAB is an entirely self-funding entity which...
The Act provides for certain instances where the liability of the fund to compensate is excluded. These instances follow
The only loss that may be recovered from the fund is actual pecuniary loss and not, for example, compensation for inconvenience.
One of the primary mandates of the Estate Agency Affairs Board (EAAB) is to regulate, maintain and promote the standard of conduct of estate agents, having due regard for the public interest.
The Estate Agency Affairs Act provides for the establishment and control of the Estate Agents Fidelity Fund which fund is controlled and managed by the Board.
June 13, 2011
The reason behind the establishment of the Fund
The Fund is applied to reimburse persons who have suffered pecuniary loss by reason of theft of trust money by an estate agent (Section 18).
June 13, 2011
Monies entrusted to an estate agent in her/his capacity as an estate agent.
Pursuant to section 18 (1) of the Estate Agency Affairs Board Act the purpose of the Fund is to reimburse persons who have suffered pecuniary loss under certain defined circumstances. These circumstances are listed as follows...
If the Board settles a claim against the fund in full or in part all rights and remedies of the claimant against the parties responsible for the loss pass to the Board to the extent of the settlement in terms of section 21 of the Act. The claimant, thus, loses all further rights of action against the estate agent or person responsible for the loss...
Claims must be lodged by way of an affidavit from the claimant setting out the circumstances giving rise to the claim.