Why you should go through your estate agent’s credentials

It’s critical to check your real estate agent’s credentials these days because  there’s always a possibility that you may be doing business with a non-registered estate agent. “Did you know that if your agent doesn’t have a valid Fidelity Fund Certificate (FFC), you don’t have to pay them a commission for selling your home? If an agent fails to produce an FFC that is still valid at the time when the commission is due, sellers can legally deny payment of the agent’s commission,” explains Regional Director and CEO of RE/MAX of Southern Africa, Adrian Goslett.

According to Goslett, at the end of 2017, it was announced that there were about 50,000 doing business in the country without valid documents. “Throughout last year, there was a call for the EAAB to clamp down on these illegally operating agents. Yet, the problem seems to persist, particularly in small towns such as Postmasburg in the Northern Cape and Hartbeespoort in the North West,” says Goslett.

He adds that consulting with “an estate agent who isn’t registered with the EAAB puts sellers at risk of working through somebody who may or may not be up to date with all the necessary requirements in handling property transactions”. Goslett further adds that “part of being registered and having a valid licence with the EAAB means that you are earning enough CPD (continuing professional development) points and have passed your PDE (professional designation examination). This protects consumers against dealing with somebody who claims to have knowledge of the industry but doesn’t.”

The money received from the issuing of FFCs is used to cover consumers’ damages for dishonest real estate agents who have illegally taken money from their clients. The EAAV said one of the fund’s purposes is: “To reimburse persons who have suffered financial loss as a result of theft of trust monies due to dealing with an estate agent”.