Property Practitioners Act, 2019 (Act No. 22 of 2019)Chapter 8 : Property Practitioners59. Insolvency or liquidation of property practitioner |
| (1) | A property practitioner who— |
| (a) | commits an act of insolvency; |
| (b) | is insolvent; or |
| (c) | is placed under liquidation, whether provisional or final, is immediately disqualified to be a holder of a Fidelity Fund certificate and must within a period of 30 days— |
| (i) | inform the Authority in writing of any matter contemplated in paragraphs (a), (b) or (c); |
| (ii) | refrain from using and displaying that Fidelity Fund certificate; |
| (iii) | inform his, her or its auditor and the bank holding his, her or its trust account in writing about the disqualification; |
| (iv) | cease to perform the functions of a property practitioner; |
| (v) | inform his, her or its clients, employees or employers or any other affected person in writing of that disqualification; |
| (vi) | hand over the administration of his, her or its trust account, together with all relevant information and records, to the Authority; and |
| (vii) | cause any outstanding matters in consultation with any affected person to be taken over by another property practitioner. |
| (2) | A person who fails to comply with subsection (1) commits an offence. |
| (3) | The Authority must wind down the trust account of a property practitioner contemplated in subsection (1) and effect payment of any trust monies in accordance with the rights of affected consumers and other persons. |
| (4) | In the event of insolvency or liquidation of a property practitioner, trust monies in the trust account of that property practitioner do not form part of the insolvent estate. |