Proposed estate agent license fees for 2003



Estate agent license fees for 2003 are set to rise by between 20 to 25 percent, if the Minister of the Department of Trade and Industries (DTI) approves an application by the Estate Agency Affairs Board (EAAB). The increase would raise fees to R430 for principals and R250 for non-principals. Estate Agency Affairs Board CEO Stanley Moshidi says the request is based on "ever increasing costs and inflationary pressures." "Even if these increases are granted our research has indicated that these amounts are still considerably less than the levies payable in respect of other industries and professions. Indeed, it has been estimated that the Board will spend R610 per individual estate agent next year. The Board is also liaising with the DTI on the urgent finalisation of the Board's proposed regulations governing the filing of appeals against the findings and/or sentences of committees of inquiry. Moshidi wants to introduce a more streamlined and user-friendly appeal system, but one that will comply fully with natural justice and the constitution. Significant progress has been made on the issue with good co-operation secured from the DTI. The Board is also in discussion with the banking sector with the purpose of eliminating delays in the opening of trust accounts and more especially the avoidance of closure of dormant trust accounts without giving notice to the estate agent holder. Moshidi says First National Bank has created an entirely new package catering for estate agents with these constraints in mind. He is hopeful the initiative will extend to other financial institutions. The board is also addressing the issue of estate agents maintaining trust accounts with financially distressed financial institutions. Moshidi says agents should be aware that claims cannot be made against the Fidelity Fund for trust shortages suffered by an estate agent as a result of financial problems with the bank. On the positive side the Board intends acknowledging the much-valued contribution made to the industry by estate agents who have continually held a fidelity fund certificate for a period of 20, or more years. Although the act precludes the Board form waiving the payment of levies in respect of such persons the Board intends recognising their industry contribution with a Certificate of Merit. * IEASA national president Bill Rawson has branded the proposed EAAB fees increase as "unfair" and against the spirit of the government's inflation target of six percent. He also believes the Board should have consulted with the industry before setting the proposed amount of increase. Article: 20 September 2002 RodneyHayter The Property Professional On-line Edition 52 email: hayter@icon.co.za