Press Release - EAAB offers reprieve for estate agents with historical debt
14 February 2020
EAAB offers reprieve for estate agents with historical debt
JOHANNESBURG – Estate agents who failed to notify the Estate Agency Affairs Board (EAAB) that they are no longer practicing have received a welcome reprieve that will allow them re-entry in the property market space.
To date 87 estate agents have benefitted from a special re-admittance practice note issued in June last year which ultimately allows estate agents who have historical penalties to re-enter the industry after fulfilling certain requirements.
EAAB Chief Executive Ms. Mamodupi Mohlala says practice note ETD022019 was issued following huge interest from estate agents who did not comply with the Estate Agency Act regulation which stipulates that all estate agents wanting to discontinue practice should notify the board in writing.
In essence, the reprieve allows for estate agents who have not applied for renewal of their Fidelity Fund Certificates (FFC’s) for three years or more to apply for re-admittance. Estate agents will have to pay a minimum of R1,000 for acknowledgment of historical debt in terms of outstanding FFC fees and will have to sign an undertaking to pay off the debt over either six, twelve or sixteen months. The debt incurred over a three year period amounts to R16 200 for principal agents and R8 640 for full status agents and interns.
For example, full status agents and interns who apply for re-admittance under the practice note will have to pay the R1,000 acknowledgement of debt which will be deducted from the R8 640. The remaining R7 640 can them be paid off in instalments of up to 16 months.
Once this agreement has been signed, all estate agents will have to pay their annual FFC fees before 31 October each year.
In terms of the Estate Agency Affairs Act all registered estate agents are required to be in possession of a valid FFC to be able to trade.
Ms. Mohlala urges estate agents to take up this offer to allow them to gain meaningful employment in the property sector.
To apply for re-admittance, interested estate agents can contact the EAAB call centre on 087 285 3222 or visit the EAAB offices at 63 Wierda Road East and Johan Avenue, Wierda Valley, Sandton, Johannesburg.
For more information contact
Communications and Stakeholder Engagement Specialist
About the EAAB
The Estate Agency Affairs Board (EAAB) was established in 1976 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. The Estate Agency Affairs Board (EAAB), which has been reporting to the Minister of Trade and industry since 1976, was transferred to the Department of Human Settlements on 17 May 2012 by Proclamation of the President of the Republic of South Africa.
About the Property Practitioners Act
In October 2019, The Property Practitioners Act of 2019 was signed into law by President Cyril Ramaphosa. The Act repeals the Estate Agency Affairs Act and is aimed at improving the functioning of the property market, ensuring professional standards which includes regulating the buying, selling and renting of land and buildings and puts in place comprehensive monitoring mechanisms.