[Question] new rules for estate agents

[StephanieB]

I would like to know what the position is with estate agents. I know a small estate agent operating on his own. He has a trust account but does not use the trust account at all. Now it seems as if the new rule is that all estate agents books even if they are just a one man show have to have their books audited which of course costs a lot for someone trying to keep the business going with things looking like they do in the property market.
Will really appreciate your input regarding this.

[adrianh]

I sure hope they have to have trust accounts and their books audited...Way too much fraud taking place.

[Blurock]

They can only commit fraud if you pay a deposit into their trust account. But why would you do that...?

[Dave A]

They can only commit fraud if you pay a deposit into their trust account. But why would you do that...?

It's particularly common with shareblock transactions as these transfers don't involve a conveyancer.

[Blurock]

It's particularly common with shareblock transactions as these transfers don't involve a conveyancer.

...and we know the risk of purchasing a property on shareblock.

[DeonT]

Hi Stephanie. Any estate agency must open keep one or more trust account/s in terms of section 32 of the Estate Agency Affairs Act. The size of the agency makes no difference to this. Section 29 of this Act also requires the estate agent/agency to keep proper books of account for its business and trust account, and the estate agency must also have these sets of accounts audited on an annual basis.

Hope this helps.

[samanthaflax02]

The Estate Agents Act 1979 regulateswork as an estate agent. Its purpose is to make sure that real estate agents act in the best interests of clients, and that both buyers and sellers are treated honestly, fairly and promptly.

Here are two things you need to remember:

if your agent don't comply with the law, you could be banned from working as an estate agent
if he ignore a ban, he could be prosecuted and fined.