Inspections and Investigations

Main Focus of the Inspectors

The inspections will concentrate mainly on the following sections of the Act and the Code of Conduct:

Section 26 – which prohibits any person from performing any act as an estate agent unless a valid fidelity fund certificate has been issued  to him/her.

Auditing of the Trust Account

Section 29 read with Section 32 – which prescribe that an estate agent shall in respect of his activities as such keep accounting records   which fairly reflect and explain the state-of-affairs of the trust account.

The accounting records must be audited by an auditor within four months after the date of the financial year-end.

 

Submission of an Auditor’s Report

• Section 32 (4) – an auditor shall transmit a report to the EAAB and submit a copy to the   relevant estate agent.
• Section 32 (5) – the EAAB may, on good cause, order an estate agent to submit an audited statement fully setting out the state of affairs of the trust account

General Findings from Inspections

• Trust accounts not properly designated;
• The audit reports submitted did not reflect the correct position of the business;
• Estate agent/ agent/branch operating illegally;
• Improper conduct where practices which obviously contravene the Code of Conduct;