Estate Agency Affairs Act, 1976 (Act No. 112 of 1976)RegulationsTrust Account of an Estate Agent and Investment of Trust MoneysNotice R. 1472 of 1977 |
The Minister of Economic Affairs, after consultation with the Estate Agents Board, has made the following regulations in terms of section 33(1)(j), (k) and (I) of the Estate Agents Act, 1976 (Act No. 112 of 1976):
| 1. | In these regulations, unless the context otherwise indicates— |
means the Estate Agents Act, 1976 (Act No. 112 of 1976);
includes the Schedule thereto;
means the balance standing to the credit of any person in the books and records of an estate agent, representing amounts held or received on behalf of such person, less any amount paid out in terms of a mandate from such person and less any commission and collection fee due to such estate agent up to the date of balancing.
2.
2.1
| 2.1.1 | An estate agent shall cause the accounting records intended in section 29(a) and 32(3)(a) of the Act to be audited in accordance with the provisions of section 29(b) and 32(3)(b), by the auditor intended in section 29(b), within four months of the date stated by him as the end of the financial year of his estate agency business in his application for the issue to him of his vaild [sic] fidelity fund certificate. |
| 2.1.2 | The date intended in regulation 2.1.1 shall not be altered by an estate agent without the prior written consent of the board having been obtained. |
| 2.1.3 | The report to be submitted to the board in terms of section 32(4) of the Act shall be in the form specified in the Schedule to these Regulations. |
[Regulation 2.1 substituted by Notice No. R. 948 of 1981]
| 2.2 | If the auditor is unable to furnish an unqualified report in the form of the Schedule hereto, the fact thereof and the reasons therefor shall be fully set out in the report transmitted by him in place thereof which shall otherwise be as far as possible in the form of the said Schedule. |
| 2.3 | Every auditor who has commenced or carried out an audit in terms of sections 29(b) and 32(3)(b) of the Act shall without delay report direct to the board if— |
| 2.3.1 | it comes to his notice that at any date the aggregate of the amounts of the funds in an estate agent's trust account kept in terms of section 32(1) of the Act, together with any funds available in a separate savings or other interest-bearing account kept in terms of section 32(2)(a) of the Act and any trust moneys held according to the estate agent's books of account and accounting records in cash on hand, is less than the total of the trust balances shown in the trust account in the ledgers of the estate agent; |
| 2.3.2 | any material queries concerning the accounting systems, accounting records, the books of account or entries therein or the trust account, savings account or interest-bearing account referred to in 2.3.1 which he has raised with such estate agent have not been fully and promptly dealt with to his satisfaction. |
3.
| 3.1 | After the occurrence of an event contemplated in section 32(7) of the Act— |
| 3.1.1 | no moneys shall be withdrawn from or paid out of the trust account or savings or other interest-bearing account in question without the consent in writing of the board; |
| 3.1.2 | the estate agent concerned shall— |
| 3.1.2.1 | if it is an event contemplated in section 32(7)(b) of the Act, forthwith notify the board in writing thereof; |
| 3.1.2.2 | as soon as may be practicable in writing notify the bank, building society or institution referred to in section 32(2)(a) of the Act with which he keeps the trust account or savings or other interest-bearing account in question of the occurrence of any such event and also that in future no moneys may be withdrawn from or paid out of any such account without the consent in writing of the board: Provided that the board itself may at any time so notify such bank, building society or other institution; |
3.1.2.3 as soon as may be practicable in writing furnish the board with the name of the persons entitled to any moneys in any such account, the amount to which any such person is entitled and the reasons therefor;
| 3.1.2.4 | having complied with the requirements of regulations 3.1.2.1, 3.1.2.2 and 3.1.2.3 and with the consent in writing of the board, pay to the persons referred to in regulation 3.1.2.3 and to such other persons who in the opinion of the board are entitled to any moneys in such accounts, out of such accounts the moneys to which they are entitled. |
| 3.2 | If after payment in accordance with regulation 3.1.2.4 a balance remains in any of the accounts in question, the board shall publish in the Gazette and in two newspapers circulating in the district in which the estate agent concerned acted as such, a notice stating that there is such a balance and inviting persons to lodge, within 30 days after the date of such notice, with the board in writing any claim which they may have to such balance or part thereof. |
| 3.3 | If no person has proved any claim in terms of regulation 3.2 to the balance in question or any part thereof, the estate agent concerned shall be entitled to such balance, or after payment of any part of such balance to any person who has proved that he is entitled thereto in terms of regulation 3.2 the estate agent concerned shall be entitled to the remainder. |
| 3.4 | After all the moneys in the accounts in question have been paid in terms of this regulation to the persons entitled thereto, the estate agent concerned shall wind up such accounts and in writing notify the board thereof. |
4.
| 4.1. | Any interest received by or credited to an estate agent in respect of any period ending on the last day of February in each year and payable to the fund in terms of section 32(2)(c), shall be paid regularly and promptly but in any event not later than the last day of May in that year, to the fund or its nominee. |
| 4.2 | The board may, in terms of section 32(2)(d), refund 50 per cent of all interest paid to the fund in terms of regulation 4.1, to such estate agent. |
[Regulation 4 substituted by Notice No. R. 1415 of 1981]
| 5. | For the purpose of balancing his books and records in terms of section 32(3)(b) of the Act an estate agent shall at intervals of not more than one calendar month extract a list of the balances standing to the credit of any person and shall keep the lists of such trust balances for not less than three years from the date of which the same were extracted. |
[Regulation 5 amended by Notice No. R. 2418 of 1980]