SA ESTATE AGENTS APPEAL RULING – GOAL R 220 000
The EAAB is the regulatory authority that can prevent an Agent from trading and can stop an individual from earning a living – yet they cannot manage even the simplest task: issuing an FFC to an Agent in the correct name, within the prescribed time. For years the EAAB has been the bane of many Agents’ lives and invariably it has been the focus of criticism and ridicule from those people who earn a living from selling/renting houses. It’s been said that the EAAB ‘epitomises the worst forms of incompetence, ineptitude and inability’. The internet is rife with complaints about the Boards lack of service delivery, but no one ever does anything about it!
Every year every South African Estate agent must roll the dice when they try to renew their FFC’s with the antiquated and cumbersome EAAB and annually thousands of estate agents fail to get their certificates on time even though they have done everything required of them! In December 2018 the situation got a whole lot worse and thousands of legitimate agents will be banned from making a living through no fault of their own. A Cape Town High Court ruled that an agent/agency isn’t entitled to claim commission if it is not in possession of a valid FFC at the time when the commission is earned, even if the reason for the FFC not being issued is through no fault of the agent/agency, but as a result of an admitted mistake on the part of the Board!
We were the Agency that took the case to court when a competitor refused to pay a very small rental commission even when it was obvious that the Board was at fault. We spent close to a quarter of a million rand on defending the case but the Judge ruled: NO FFC, NO COMMISSION.
There is existing case law in the matter of Crous International (Pty) Ltd vs Printing Industries Federation of South Africa that contradicts our ruling and our legal team is confident that the ruling could be overturned IF we appeal. We have been granted Leave to Appeal and the matter will be heard at the Supreme Court of Appeal.
As it now stands the fact remains as follows: If you as an Agent renew your FFC in time, effect the payment that is required BUT the EAAB fail to issue you your FFC correctly or in time – you cannot claim any commission! The potential loss of commission for those thousands of estate agents that don’t get their FFC’s issued on time as at 1 January 2020 is in the millions of rand. It could happen to any of us.
We are calling on all agents to stand up and defend this case – you can do so by making personal contribution of R200 or more and encouraging your colleagues/principals to do the same.
TOGETHER WE CAN ACHIEVE MORE!
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