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

Code of Conduct

9. Trust money and interest

 

 

An estate agent--

 

9.1 shall not solicit or influence any person entitled to trust funds in the agent's possession or under his control to make over or pay to the estate agent directly or indirectly any interest on moneys deposited or invested in terms of section 32(1) or 32(2)(a) of the Act;

 

9.2 shall, before he receives any money in trust in respect of a contract of sale or lease, disclose to the parties concerned that unless they agree in writing to whom interest earned on such money must be paid, the interest shall, in terms of section 32(2)(c) of the Act, accrue to the Estate Agents Fidelity Fund;

 

9.3 shall, if any money is invested by him pursuant to section 32(2)(a) of the Act or pursuant to an instruction by the party entitled to the interest on money held in trust by the estate agent--
9.3.1 invest such money at the best interest rate available in the circumstances at the bank or building society where he normally keeps his trust account or accounts; and
9.3.2 pay the full amount of the interest which accrued on the investment to the party entitled to such interest, or the board, as the case may be, subject to any written agreement in this regard between him and such party;

 

9.4 shall not include, or cause to be included, or accept the benefit of, any clause in a contract of sale of immovable property negotiated by him, providing for payment to the seller, prior to registration of transfer of the property in the purchaser's name, of any portion of the purchase price entrusted to the estate agent by the purchaser: Provided that the aforegoing shall not apply if--
a) good cause exists; and
b) the purchaser has prior to his signature of the contract in question, consented in writing in a document executed independently of the said contract, to such payment; and
c) such document contains an explanation of the implications and financial risks of such payment for the purchaser; and
d) such document is signed by both the seller and the purchaser and the estate agent in question.