Apparently 47,480 estate agents out of a total 84,000 agents countrywide are operating without valid fidelity fund certificates. These certificates give estate agents the mandate to operate and protect clients from losing everything as their claims against the estate agents will be invalid. It seems the problem is that over the last three years, estate agencies had failed to keep a record of their trust accounts in terms of the Estate Agency Affairs Act and/or had not submitted their annual audit reports on time.
Certificates were therefore not issued. Yet Kobus Boshoff says that even agencies which had complied with the requirements of the act have not received their certificates. This has been denied by the EAAB.
Article on fin24.co.za