Do you know that all estate agents should be qualified and hold a current Fidelity Fund Certificate (FFC) with the governement regulatory body called the Estate Agents Affairs Board? (EAAB). Qualified agents carry their FFC’s with pride, renew them annually and attend on-going training, which they pay for, in order to get their annual Continuous Professional Development points (CPD). Without attaining the required number of points per annum, the FFC will not be renewed.
Many Estate Agents do not register with the EAAB. The consequence of this is that should facts be misrepresented, monies be stolen, etc, causing you financial loss, then you as the Seller or Buyer will not have recourse to the EAAB to refund your loss, as the Agent would not have Fidelity cover in place. It is therefore wise to ask the Agent to provide proof that they are registered with the EAAB by either producing a copy of the FFC, or the ID card that goes with it. As a private individual, you can also log onto the Estate Agency Affairs Board's website where you will find a list of all registered Estate Agents as well as registered Estate Agencies/offices.
Please note that only an Agent who holds a valid FFC may complete the required documentation for an Agreement of Sale. In terms of the regulations, an intern Agent (an agent undergoing their first year of training) who does not hold a full FFC must ensure that a qualified agent,who has held a FFC for more than three years, accompanies them whilst they complete the Agreement of Sale.
The number of registered Estate Agents has decreased from about 88,000 in 2008 to less than 28,000 in 2016 highlighting the fact that most Agents in South Africa are not qualified. It is in your interest to check that your Agent is registered with the Board, as any person who is not registered cannot guarantee a successful transfer of your property. We, at Dormehl Property Group, MIDLANDS, are mindful that for most people the buying or selling of their home represents the largest financial decision of their lives.
Up until 2008, it was very easy for a person to become a qualified Estate Agent. All that was required was for that person to operate as a candidate/intern agent for twelve months or to write the old Board exam. This has now changed, and for the better. All new prospective Agents need to undergo a twelve month apprenticeship as an Intern Estate Agent (NQF4), followed by writing the new Professional Designation Exemption exam. (PDE4) before being considered a full status Agent.
The EAAB also requires that all Conveyancers must comply by only working with Agents that have a valid FFC , thus weeding out any possible fraud and foul-play in the industry. When Conveyancers allow unskilled/unqualified estate Agents to sell property, this means that qualified Agents who have spent time & money to remain qualified and up-to-date, share in the bad reputation that shrouds the industry. So, ask if your Agent & Conveyancer are complying with the regulations? Do you know that an unqualified estate agent is NOT entitled to commission and you can claim the commission back from them.
We at Dormehl Property Group Midlands go further than just being compliant with EAAB regulations, we are also compliant with the other professional real estate bodies such as:
NAMA (National Association of Managing Agents)
REBOSA (Real Estate Agencies Board of South Africa)
IEASA (Institute of Estate Agents of South Africa)
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Remember – if you think hiring a professional is expensive, try hiring an amateur.
Cameron Day – Intern Estate Agent - Dormehl Property Group Midlands.