Estate Agencies Affairs Board
Category Life & Style - EAAB
Louise Gibson, MD of Comprop, advises buyers and sellers to select their agent with care....
The dip in the property market has meant that over the past 12-18 months only the top or most experienced property agents have continued to thrive. With the promise of the long-awaited upturn in sight, increasing numbers of estate agents can once again be seen buzzing along our roads with buyers and renters in tow hunting for that that ideal home or business location. But few buyers, or sellers for that matter, think to ask the estate agents for their Fidelity Fund certificate. In other words, are they operating legally and in compliance the Estate Agency Affairs Act, 1976?
It is surprising how few consumers are aware of this legislation and the protection offered to the public in utilising a registered agent to facilitate their property transactions. It is illegal to operate as an estate agent practitioner in South Africa without being registered with the Estate Agency Affairs Board (EAAB), who are responsible for issuing the requisite Fidelity Fund Certificates (FFC). Albeit the EEAB has always only granted FFC's subject to estate agency firms and agents meeting certain criteria, in the interest of regulating, maintaining and promoting the professional standard of conduct of estate agents, the minimum requirements have now become far more stringent.
All estate agency firms and agents have until December 2011 to comply with the new minimum educational qualifications, whereby they have to be certified against the relevant qualifications for non-principals and principals respectively. Estate Agents may only be exempt from these qualifications if they are in possession of an accredited level of tertiary education.
The EEAB has granted a three months'; amnesty period, terminating on 15 July 2011, for illegally operating estate agent practitioners to legalise their status, failing which they will have to close their businesses.
Firms and their agents who are not in possession of their FFC's are furthermore not entitled to any remuneration in respect of the rendering of an estate agency service until such time as a valid FFC has been issued by the EAAB.
To further the professional status of estate agent practitioners the EAAB will also be introducing a system of continuing professional development whereby agents will have to earn a prescribed number of points by attending recognised courses to keep them abreast of the property industry. If you are in any doubt as to the credibility of your agent, you can log onto the EEAB website www.eeab.org.za and check whether they are in fact operating legally and in possession of a valid FFC.
Author: Louise Gibson
