Section 1 – An estate agent is any person, who
for the acquisition of gain on his own account or
in partnership in any manner hold himself out as a
person who directly or indirectly advertises that he/
she, on instruction of, or on behalf of any other person,
performs the following acts in respect of immovable
property or a business undertaking:
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Buys or sells property;
Negotiates to buy or sell property;
Canvasses or undertakes or offer to canvass for
a lessee or lessor for rental of property;
Publicly exhibits a for sale or to let of property;
Collects or receives any money payable on
account of a lease of immovable property or
business undertaking; or
Renders any other service which the Minister of
Human Settlements may specify by means of a
notice in the government gazette.
What is the
ESTATE AGENTS
FIDELITY FUND
and its purpose?
Estate Agency Affairs Board
Block A & B
63 Wierda Road East
Wierda Valley, Sandton
Tel: 087 285 3222 www.eaab.org.za
WHAT IS THE ESTATE AGENTS FIDELITY FUND
AND ITS PURPOSE?
The establishment of the fund (section 12)
Purpose of the Fidelity Fund (claims)
The Estate Agency Affairs Act provides for the
establishment and control of the estate agents Fidelity
Fund, which is controlled and managed by the Board.
The fund derives its income from the following sources:
The fund was established for the following
purposes:
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Estate agents annual contribution; and
Investments and interests paid to the fund
Claims policy statement
The Act provides that the Board is to receive and
investigate lawful claims lodged by the general public
in respect of theft of trust monies by an estate agent
and must settle every lawful claim made against the
fund subject to certain exception viz; section 18(3) and
section 19 (1) and 19(4).
The claims are only investigated after finalisation of a
disciplinary inquiry against the estate agent concerned.
The claims process must comply with the requirements
in terms of the Act, followed by payment subject to
the consideration and recommendation of the Estate
Agency Affairs Board (EAAB) Claims Committee for
final approval by full EAAB Board.
The Board has a duty and a responsibility to ensure the
growth and sustainability of the fund and its solvency.
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To reimburse persons who have suffered financial
loss as a result of theft of trust monies due to
dealing with an estate agent;
Payment of an insurance premium;
Payment of expenses involved in the control and
management of the fund;
Public awareness programmes;
Scope of the claims and the application of the
Act
Section 32(1) - Failure of a principal estate agent to
open and keep a separate trust account with a bank;
Section 32(2) - Failure of the estate agent forthwith
to deposit all monies held or received on behalf of any
other person into the trust account;
Section 32(2) (e) - Failure on the part of a principal
estate agent to retain the trust money in his trust
account until he was lawfully entitled or lacted to make
payment;