IEASA National - News

Compliance Issues   Article Date :7 Oct 2005 Information highlighting the many things that estate agencies need to do to keep on the right side of the law THE COMPLIANCE COLUMN Owning an estate agency is no longer simply about selling and renting out clients' properties. There are legal requirements to be complied with, and they increase with every passing year. So do the penalties for non-compliance. As a service to principals - and especially those whose firms are brand new – herewith information highlighting the many things that estate agencies need to do to keep on the right side of the law. However, this column can be no more than a pointer in the right direction: for detailed information you should visit the relevant websites, consult attorneys and accountants and the authorities concerned, and attend any workshops and seminars which the Institute of Estate Agents provides from time to time. BASICS FOR A NEW ESTATE AGENCY FIRM (COMPANY, CC, TRUST, OR SOLE TRADER). Register with the Estate Agency Affairs Board: § open a trust account at your bank § appoint an auditor to audit the trust account § obtain a fidelity fund certificate for the firm and each principal § obtain a fidelity fund certificate for each agent and showhouse sitter as you employ him/her. Website: www.eaab.org.za Register with the SA Revenue Service: § as a taxpayer § as a VAT vendor § as an employer for PAYE, UIF and skills development levies payments (if you employ staff or agents). Website: www.sars.gov.za Register with your municipality: § obtain a permit to allow you to display showhouse signs § check if you need to register for RSC levy payments. Financial Intelligence § devise procedures ("internal rules") for complying with the Financial Intelligence Centre Act § compile a manual of those procedures - you can obtain a model manual from the Estate Agency Affairs Board (not from the IEA) § train your staff and agents in the procedures § appoint a compliance officer to ensure that everyone follows the procedures § verify the identity of each new client, i.e. seller or landlord, before concluding the transaction or establishing the business relationship § keep the verification documents on file for five years after the transaction or relationship has ended § report to the FIC any transaction which you know or suspect is "suspicious or unusual" e.g. it involves money-laundering or tax evasion, or may be associated with terrorist activities Website: www.fic.gov.za Government Gazette 27580 (20 May 2005) Promotion of Access to Information Act: § compile an Access to Information Manual - you can buy a model manual from the IEASA § submit a copy of the manual to the SA Human Rights Commission § publish the manual on your website (optional). Website: www.sahrc.org.za Skills development levies Please note that as from 1 August 2005, if your firm's annual payroll (commissions, salaries and wages) is less than R500 000, it will no longer have to pay skills development levies to the Services SETA. FOR RENTAL AGENCIES Rental Housing Act The Act places various obligations on landlords, and on agents who act on their behalf. They must: • give the tenant a written lease, at the tenant's request • inspect the premises with the tenant before he/she moves in, to compile a list of existing damage and defects • give a copy of the list to the tenant (attach it to the lease document if there is one) • if the premises are being let furnished or partly furnished, give the tenant a list of the furnishings (attach it to the lease document, if there is one) • give the tenant an itemised receipt for each payment made, e.g. deposit, rental • hold the tenant's deposit in an interest-bearing bank account • give the tenant, on request, a statement of the interest that has accrued on the deposit • inspect the premises with the tenant a few days before he/she moves out, to establish if any damage has been caused during the tenancy • refund the deposit, less the cost of any repairs, within the time limits laid down in the Act. Reference: Rental Housing Act (Act 50 of 1999) Register with the Council for Debt Collectors: (if you're going to collect rentals or body corporate levies, as distinct from merely receiving them) § obtain a registration certificate for the firm and each principal § obtain a registration certificate for each person (other than an administrative assistant) whom you employ to collect debts Website: www.debtcol-council.co.za Institute of Estate Agents - Regional Offices IEASA National:Tel: (021) 531-2074 Fax: (021) 531-2931 Email: kate@cape.ieasa.org.za Border: Tel: (043) 748-1156 Fax: (043) 748-2839 Email: irsasapo@iafrica.com Central Gauteng: Tel: (011) 482-2017 Fax: (011) 482-6027 Email: nirsacentral@mweb.co.za KZN Durban & Coastal: Tel: (031) 207-7330 Fax (031) 207-7362 Email: realtors@saol.com Eastern Gauteng: Tel: (013) 667-9307 Fax: (013) 667-9652 Email: ior@mweb.co.za Northern Gauteng: Tel: (012) 362-4725/4 Fax: (012) 362-4726 Email: lynettem@netactive.co.za Pietermaritzburg & Interior: Tel: (033) 394-2205 Fax: (033) 394-7010 Email: ieasapmb@lantic.net South Eastern Cape: Tel: (041) 364-2805 Fax: (041) 364-2807 Email: secir@mweb.co.za Western Cape: Tel: (021) 531-3180 Fax: (021) 531-2931 Email: info@cape.ieasa.org.za CLICK HERE TO RETURN TO THE MAIN NEWS PAGE