Certain Cape Peninsula estate agents are operating, closing deals and collecting commissions despite not having the obligatory fidelity fund certificates, says Leon Bosman, of Rawson Properties’ Fish Hoek franchise.

“Although all sorts of arguments are given as to why this should be overlooked, the plain truth is that such agents are acting illegally,” says Bosman. “The law on this matter is clear: agents have to be registered with the Estate Agencies Affairs Board and only by doing this can they qualify for fidelity fund certificates.”

If clients appoint agents who don’t have certificates, they are totally exposed to risk. Under these circumstances there can be no redress or insurance cover through the EAAB for any misconduct or misappropriation of funds.

Bosman says the EAAB does not police the issue of valid fidelity fund certificates: it waits for complaints from the public and then acts against offenders.

“By this stage the damage will have been done and the EAAB is toothless. I think the board has to address this issue as soon as possible.”

He says the Cape Town municipal officials based in Plumstead are not helping in this matter because they frequently issue show board stickers to agents whose certificates are not up-to-date. Some have even received show board stickers on certificates dated 2008.

“If the municipalities complied with the law this would be a perfect catch net for those operating illegally - but they are not doing this. Once again an ideal opportunity is being lost to govern the property industry more efficiently.

“Clients who do sell their homes through unregistered agents are entitled to withhold or claim back their commission payments once they discover what has happened.

“For their own sakes, clients who appoint any agents should always ask to see their fidelity fund certificates and should definitely not award mandates or let the agent sell their properties without one.”