Estate Agency Affairs Act, 1976 (Act No. 112 of 1976)

Regulations

Issue of Fidelity Fund and Registration Certificates

Purchase cart Previous page Return to chapter overview Next page

 

 

The Deputy Minister of Finance and of Trade and Industry, acting on behalf of the Minister of Trade and Industry has, after consultation with the Estate Agents Board, in terms of section 33 of the Estate Agents Act, 1976 (Act 112 of 1976), made the regulations contained in the Schedule.

 

Schedule

 

1.In these regulations words and expressions defined or used in this Act have the meaning assigned thereto.

 

2.Every estate agent excluding an "estate agent" referred to in paragraph (cA) of the definition of "estate agent'' in section 1 of this Act shall--
a)for the calendar year 2000 and annually thereafter pay to the board a levy of--
i)R174 if he or she is an estate agent by virtue of paragraph (a) of the definition of "estate agent" or paragraph (c)(i) of the definition of "estate agent"; or
ii)R100 if he or she is an estate agent by virtue of paragraph (c)(ii) of the definition of "estate agent"; and
b)for the calendar year 1998 and any subsequent year in respect of which he or she applies for the issue to him or her of a fidelity fund certificate, pay to the fund a contribution of--
i)R275 if he or she is an estate agent by virtue of paragraph (a) of the definition of "estate agent" or paragraph (c)(i) of the definition of "estate agent''; or
ii)R110 if he or she is an estate agent by virtue of paragraph (c)(ii) of the definition of "estate agent":

provided that no such contribution will be payable if the estate agent concerned can show that a valid fidelity fund certificate was issued to him or her in respect of any one of the immediately preceding three calendar years.

 

3.An estate agent referred to in paragraph (cA) of the definition of "estate agent" in section 1 of this Act shall pay annually to the Board a levy of R100.

 

4.
1)Every estate agent to whom a fidelity fund certificate or a registration certificate has been issued in respect of a specific calendar year shall, unless he has ceased or will cease before the end of that year to operate as an estate agent and has advised the board of such fact in the prescribed manner, by not later than 31 October of that year, apply to the board for the issue to him of a fidelity fund certificate or registration certificate, as the case may be, in respect of the immediately succeeding calendar year.
2)Any person who intends to commence operating as an estate agent in the course of any calendar year shall apply to the board for the issue to him of a fidelity fund certificate or a registration certificate as the case may be, in respect of the remainder of that year.
3)Any estate agent who carries on business otherwise than as an employee or independent contractor in more than one branch or outlet, shall apply for a separate fidelity fund certificate in respect of each such branch or outlet, irrespective of the trading name or style under which business is carried on in each such branch or outlet and shall display each such fidelity fund certificate to the satisfaction of the board in a prominent position in each such branch or outlet: Provided that each such fidelity fund certificate shall be issued to the estate agent free of charge.

 

5.The applications referred to in regulation 4 shall be accompanied by the levies referred to in regulation 2 or 3, as the case may be, and by the contribution referred to in regulation 2, if applicable.

 

6.An application by any person who applies in terms of regulation 4(2) for the issue to him or her of a fidelity fund certificate or a registration certificate for a certain year shall, if such application is in respect of a period commencing before 1 July of that year, be accompanied by the full amount of the levy and, if applicable, the contribution referred to in regulation 2 or the full amount of the levy referred to in regulation 3, as the case may be: Provided that--

 

1)If application is made on or after 1 July 1999, in respect of the remainder of 1999, such estate agent shall--
a)pay to the board a levy of--
(i)R75 if he or she is an estate agent by virtue of paragraph (a) of the definition of "estate agent" or paragraph (c)(i) of the definition of "estate agent"; or
(ii)R44 if he or she is an estate agent by virtue of paragraph (c)(ii) of the definition of "estate agent"; or
(iii)one half of the levy referred to in regulation 3 if he or she is an estate agent by virtue of paragraph (cA) of the definition of "estate agent" in section 1 of this Act; and
b)pay to the fund a contribution of--
(i)R250 if he or she is an estate agent by virtue of paragraph (a) of the definition of "estate agent" or paragraph (c)(i) of the definition of "estate agent"; or
(ii)R100 if he or she is an estate agent by virtue of paragraph (c)(ii) of the definition of "estate agent":

Provided that no such contribution will be payable if the estate agent concerned can show that a valid fidelity fund certificate was issued to him or her in respect of any one of the immediately preceding three calendar years.

 

2)If application is made on or after 1 July 2000 and on or after 1 July of every subsequent year, for the remainder of 2000 or the remainder of every subsequent year, as the case may be, such estate agent shall--
a)pay to the board a levy of--
(i)R87 if he or she is an estate agent by virtue of paragraph (a) of the definition of "estate agent" or paragraph (c)(i) of the definition of "estate agent"; or
(ii)R50 if he or she is an estate agent by virtue of paragraph (c)(ii) of the definition of "estate agent"; or
(iii)one half of the levy referred to in regulation 3 if he or she is an estate agent by virtue of paragraph (cA) of the definition of "estate agent" in section 1 of this Act; and
b)pay to the fund a contribution of--
(i)R275 if he or she is an estate agent by virtue of paragraph (a) of the definition of "estate agent" or paragraph (c)(i) of the definition of "estate agent"; or
(ii)R110 if he or she is an estate agent by virtue of paragraph (c)(ii) of the definition of "estate agent":

Provided that no such contribution will be payable if the estate agent concerned can show that a valid fidelity fund certificate was issued to him or her in respect of any one of the immediately preceding three calendar years.

 

7.Any change in the amount of the levies and contributions payable in respect of any year shall be published in the Gazette not later than 31 August of the preceding year.

 

8.
1)If the board is satisfied that the applicant concerned is not disqualified in terms of section 27 of the Act and that the requirements of regulations 4 and 5 have been complied with, the board shall issue to the applicant a fidelity fund certificate in the form of Annexure A hereto or a registration certificate in the form of Annexure B hereto, as the case may be, which shall be valid until 31 December of the year to which the application relates.
2)The words 'Candidate/Kandidaat' shall be printed in a conspicuous manner an any fidelity fund certificate issued to a person who in terms of Government Notice No. R.1469 of 29 June 1990 has been exempted from complying with the standard of training prescribed by Government Notice No. R.1409 of 1 July 1983.

 

9.
1)Any company or close corporation operating as an estate agent is hereby exempted from the payment of the levy and the contribution referred to in regulation 2, provided a fidelity fund certificate has been issued to each of its directors, or members contemplated in paragraph (b) of the definition of estate agent in section 1 of this Act.
2)Notwithstanding the provisions of subregulation (1), such company or close corporation shall in its own name apply in terms of these regulations for the issue to it of a fidelity fund certificate.
3)A fidelity fund certificate referred to in subregulation (2) shall be issued free of charge and shall to the satisfaction of the board be displayed in a prominent position on the premises of the company or close corporation concerned.

 

10.The holder of a fidelity fund certificate or a registration certificate shall inform the board within 14 days of any change in the information supplied to the board at the time of applying for the issue to him of such certificate and, if the information appearing on the certificate is no longer applicable or has changed, such certificate shall forthwith be forwarded to the board for appropriate amendment thereof or for the issue of a new certificate in substitution therefor.

 

11.Every fidelity fund certificate or registration certificate issued in terms of these regulations shall remain the property of the board.

 

12.
1)If a fidelity fund certificate was issued to an independent contractor or any person referred to in paragraph (c)(ii) of the definition of "estate agent" in section 1 of this Act, and such person ceases to be employed by or associated with the employer mentioned in such certificate that employer shall, within 14 days of such person ceasing to be in his employ, or to be thus associated, return such certificate to the board together with a letter informing the board of such fact and, if such information is available, stating with whom that person is taking up employment or becoming associated.
2)The provisions of subregulation (1) shall mutatis mutandis apply to a registration certificate issued to any person referred to in paragraph (cA) of the definition of "estate agent" in section 1 of this Act.
3)If the employer concerned is unable for any reason to return the certificate as required by subregulation (1) or (2), as the case may be, the employer shall within 14 days of the termination of employment or ceasing to be associated, inform the board of that fact, stating the reasons why it is unable to return such certificate as well as furnishing all available information concerning the whereabouts of such employee or independent contractor.

 

13.A written request to the Board to furnish the reasons for refusing to issue a fidelity fund certificate or a registration certificate to the person making such request shall be accompanied by an amount of R115.

 

14.Government Notices R.956 of 24 May 1977, R.989 of 1 June 1977, R.1779 of 31 August 1978, R.605 of 23 March 1979, R.2500 of 13 November 1981, R.1787 of 20 August 1982, R.2071 of 23 September 1983 and 1935 of 30 August 1985 are hereby withdrawn.

 

[Note: The amounts payable under regulation 2(a), 3, 6 and 13 include Value-Added Tax]

 

Annexure A is the Estate Agents Fidelity Fund Certificate.

 

Annexure B is the Registration certificate issued to an Estate Agent referred to in paragraph (cA) of the definition of "estate agent" in section 1 of the Estate Agents Act, 1976 (Act No. 112 of 1976).