O-YES Properties | EAAB given strict timeline to get its affairs in order

EAAB given strict timeline to get its affairs in order

The Estate Agency Affairs Board (EAAB) has to get its affairs in order urgently, or face being in contempt of a high court ruling that it is failing South Africa’s Real Estate industry.

In the final judgement in the case brought before the court by the Real Estate Business Owners of South Africa (REBOSA) at the end of January 2021, the court ruled in favour of estate agents still awaiting their Fidelity Fund Certificates (FFCs), with full costs.

Rebosa Chief Executive Jan le Roux welcomed the judgement that “highlights the plight of the average agent”.

“This judgement opens the doors to working closer to the EAAB in order to fix the challenges and to have a closer and better working relationship with our regulator for an enhanced professional future of our industry”.

High Court Judge Fayeeza Kathree-Setiloane has given the regulator a strict timeline to not only issue FCCs to each of the applicants listed in the court application but to also inform those who have been declined, the reasons why the regulator is not approving their application.

 

 

The court also wants full disclosure of the total funds currently held by the EAAB in its suspense account. The EAAB also has 30 days to detail all the approved and declined applications made to the EAAB on or before 31 October 2020 for a FFC for the year commencing 1 January 2021.

Chairperson of REBOSA Tony Clarke says, “Rebosa fully supports the role of the Estate Agency Affairs Act in promoting better transparency, disclosure, accountability and governance in our industry.”

“We simply need the legislation implemented effectively in order for it to have the desired effect.”

The high court ruling also follows a forensic audit of the EAAB Fidelity Fund ordered by the Minister for Human Settlements, Water and Sanitation, Lindiwe Sisulu at the beginning of March.

The scope of the Minister’s audit is expected to cover the last 24 months of Fidelity Fund transactions, investments and processes; EAAB staff appointments; tenders and procurement processes; and legal matters attended and financed by the EAAB

 

Courtesy of Property24 | Jan Le Roux of Rebosa

 

 

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