Estate Agents Amendment Act
REPUBLIC OF SOUTH AFRICA
GOVERNMENT GAZETTE
STAATSKOERANT
VAN DIE REPUBLIEK VAN SUID-AFRIKA
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CAPE TOWN, 23 MAY 1980
KAAPST AD, 23 MEl 1980 [No. 7011
DEPARTMENT OF THE PRIME MINISTER . DEPARTEMENT VAN DIE EERSTE MINISTER
No. 989. 23 May 1980. No. 989. 23 Mei 1980.
It is hereby notified that the State President has assented to the following Act which is hereby published for general information:- ·
No. 57 of 1980: Estate Agents Amendment Act, 1980.
Hierby word bekend gemaak dat die Staatspresident sy goedkeuring geheg het aan die onderstaande Wet wat hierby ter algemene inligting gepubliseer word:-
No. 57 van 1980: Wysigingswet op Eiendomsagente, 1980.
Please note that most Acts are published in English and another South African official language. Currently we only have capacity to publish the English versions. This means that this document will only contain even numbered pages as the
other language is printed on uneven numbered pages.
GOVERNMENT GAZETTE, 23 MAY 1980 No. 7011 3
ESTATE AGENTS AMENDMENT ACT, 1980 Act No. 57, 1980
GENERAL EXPLANATORY NOTE:
I J Words in bold type ·in square brackets indicate omissions from existing enactments. · · Words underlined with solid line indicate insertions in existing enactments.
ACT To amend the provisions of the Estate Agents Act, 1976, relating·
to definitions; to provide for the designation ofinspectors by the Estate Agents Board; the appointment of an executive committee by the Board; relating to the costs of investiga· tions by the Board; the liability of the Estate Agents Fidelity Fund; the issue of fidelity fund certificates to persons not having certain standards of training or practical experience or who are or were directors of certain companies; the power of the court to withdraw fidelity fund certificates in certain circumstances; improper conduct by certain directors of certain companies; the penalties which may be imposed for improper conduct; the periods within which appeals may be lodged against certain decisions of the Board; the refund of certain interest to certain estate agents; and the auditing of certain accounting records; to determine the duties and powers of inspectors; relating to the carrying on of the business of an estate agent at residential premises; and the penalties which may be imposed for c~rtain offences; and to provide for matters connected therewith.
(;ffrikaans text signed by the State President.) (Assented to 5 May 1980.)
BE IT ENACfED by the State President, the 'senate and the House of Assembly of the Republic of South· Africa, ·as
follows:-
1. Section 1 of the Estate Agents Act, 1976 (hereinafter referred Am~ndment of 5 to as the principal Act), is hereby amended- . secuon 1 of
b h · · ft h d fi · · f " a1 fi 'al Act 112 of 1976 (a) y t e msertton a er t e e mt10n o annu nanct as amended by ' statement" of the following definition: · · section 1 of '"auditor' means an rson re istered in· terms of Act 60 of 1978.
section 23 of the Public Accountants' and Auditors' 10 Act, 1951 (Act No. 51 of 1951), as an accountant
and auditor, and engaged in public practice as such;"; · . .
(b) by the"TriSertion after the definition of "estate agent" of the following definition:
15 "'executive committee' means the executive committee appointed in terms of section SA (1);";
(c) by the substitution for the definition of "Minister" of the following definition:
GOVERNMENT GAZETTE, 23 MAY 1980 No. 7011 S
ESTATE AGENTS AMENDMENT ACI", 1980 Act No. 57, 1980
'"Minister' means the Minister of [Economic] Com--merce and Consumer Affairs;". 2. The following section is hereby substituted for section 6 of Sub~titution of
the principal Act: . · · · section 6 of · · Act 112 of 1976.
5 "Staffof board and · designation of inspectors.
6. ill. The work incidental to the carrying out of its functions by the board shall be perfonned under its directions and control by persons appointed by the board on such conditions and at such remuneration as the Minister may in consultation with the Minister of
10 Finance approve. (2) The board may designate persons appointed in
terms of subsection (1) and any other persons whom he may deem fit, to perform the functions of inspectors under this Act subject to its control.' 1•
15 3. The following section is hereby inserted in the principal Act Insertion of after section 8: · section SA in
Act 112 of 1976. "Executive SA. (1) The board rna a point three or more than committee. three of its members as an executive committee of the
board which, subject to the provisions of subsection 20 (2) and the directions of the board, shall have the
power to exercise all the powers and perform all the functions of the board during the periods between meetings of the board. . .
(2) Except in so far as the board may direct 25 otherwise, the executive committee shall not have the
power to set aside or amend any decision of the board. . .
(3) Any act performed or decision taken by the executive committee shall be of force and effect
30 except in so far as it is set aside or amended by the board at its next ensuing meeting.".
4. Section 9 of the principal Act is hereby amended by the Am~ndment of subs~itution for the proviso to subsection (2) of the following s;,ctJ~fl r;t
1976 prov1so: ct 0 • 35 "Provided that- _ ~ any moneys or other property donated or bequeathed to
the · board shall be utilized in accordance with the conditions of such donation or bequest;
b the board,· if after an investi ation it has found that an 40 estate agent failed to comply with any duty imposed
upon him in terms of this Act, may recover from such estate agent the costs of such investigation in so far as it relates to such duty.". I
5. Section 18 of the principal Act is hereby amended- Am~ndment of 45 (a) · by the _substitution for subsection (1) of the following S:.~:1fj21!f0l976•
· subsectwn: · . . as amended by "(1) Subject to the provisions of this Chapter, the section 2 of
fund shall be held and applied to reimburse persons who Act 60 of 1978. suffer pecuniary loss by reason of-
50 (a) theft, committed after the commencement of this - Act, by an estate agent- . [(a)] (i) of any money or other property entrusted by or
- on behalf of such persons to him in his capacity as an estate agent;
55 [(b)] QQ of any moneys collected or received by him and · payable on accm,nt of a contract of purchase and sale, including any agreement or intermediate transaction as defined in section 1 of the Sale of Land on Instalments Act, 1971
60 (Act No. 72 of 1971); [(c)J (iii) of any other moneys, including insurance
premiums, collected or received by him and
GOVERNMENT GAZETIE, 23 MAY 1980
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ESTATE AGENTS AMENDMENT Acr, 1980
payable in respect of immovable property, any interest in immovable property or any business undertaking;
(b) the failure of an estate agent to comply with the provisions of section 32 (1). ";
(b) by the substitution for the words preceding paragraph (b) of subsection (3) of the following words:
"No person shall have any claim against the board in. respect o a theft or failure· referred to in subsection (1) unless- ( a) the claimant has, within three months after he
became aware of su.ch theft or failure or by the excercise of reasonable care should have become aware of such theft or failure, given notice in writing to the board of such claim;".
No. 7011 7
Act No. 57, 1980
6. Section 19 of the principal Act is hereby amended by the Am~ndment of substitution i~ subsection (1) for the words preceding the proviso ~~:~~~21~t[916. of the followmg words:
"The board may, at any time after the commission of any theft, or an failure to comply with the provisions of section 32 (1), in respect of which a claim relating tot e und arose, reCeiVe such claim and may, subject to the provision·s of section 18, settle such claim:";
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7. Section 27 of the principal Act is. hereby amended by the Amendment of 25 substitution for the words preceding the proviso of the following section 27 of
words: . . Act 112. of 1976, "N fid I' fi d 'fi hall b · · d as substituted by o e tty un certt cate s e tssue t~ section 3 of (a) any estate agent who or, if such estate agent is a Act 60 of 1978. - company, any company of which any director-
30 . [(a)] .ill. has at any time by reason of improper conduct been dismissed from a position of trust;
[(b)] !ill. has at any time been convicted of an offence involving an element of dishonesty;
[(c)] (iii) isan unrehabilitated insolvent; 35 [(d)] .ili1 is of unsound mind; [or]
[(e)] (v) has been dealt with in accordance withsection 30 - (3) (a); _ . (vi) does not comply with the prescribed standard of
. training; 40 . (vii) does not have the prescribed practical experience;
(b) any estate agent who is a director of a company- (i) of which the fidelity fund certificate was withdrawn
by the board in tenns of section 28 or 30; (ii) which was prohibited in terms of section 32 (6)
45 from operating in any way on its trust, savings or other interest-bearing account referred to in section 32 (2) (a),
or any estate agent who immediately before or on the date on which such fidelity fund certificate was so
50 withdrawn or such company was so prohibited, was a director of such company:". ·
8. Section 28 of . the principal Act is hereby amended by the Am~ndment of addition of the following subsection: secuon 28 of
" 3) The court rna , on ood cause and u n a lication Act 112 of !976. 55 by the board or any other competent person, withdraw any
fidelity fund certificate issued to ·any person, and thereupon such person or any other person having such certificate in his possession or under his control shall forthwith return it to the ~".
60 . 9. Section 30 of the principal Act is hereby amended- Am~ndment of (a) by the ins~rtion after paragraph (g) of subsection (1) of ~ctl~~l0f~f976 the followmg paragraph: ct 0 •
GOVERNMENT GAZETTE. 23 MAY 1980 · No. 7011 9
ESTATE AGENTS AMENDMENT ACT, 1980 Act No. 57, 1980
• '(BA) in his capacity as a director of a company which is an estate agent and which failed to comply with the requirements of section 29 or 32, did not take all reasonable steps to prevent such failure;";
5 (b) by the substitution for paragraph (b) of subsection (3) of the following paragraph: ·
"(b) impose on such estate agent a fine not exceeding [five hundred] one thousand .rand and which is payable to the board;".
10 10. Section 31 of the principal Act is hereby amended by the substitution for the words ·preceding paragraph (a) of the following words: ·
"Any person who feels aggrieved by any decision taken by the board in the exercise of its powers under section 16, 27,
15 . 28 or 30 may [within a period of] at any time after he became aware of such decision but not later than one month after the board-".
Amendment of section 31 of Act 112 of 1976, as amended by section 4 of Act 60 of 1978.
11. Section 32 of the principal Act is hereby amended- Am~ndment of (a) by the ad?ition to subsection (2) of the following ~~ttlffl~t{976, 20
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paragraph: as amended by "(d) The board may in the prescribed circumstances sections of
refund to an estate agent a prescribed portion of the Act 60 of 1978. interest paid by. such estate agent to the fund in terms of paragraph (c).";
(b) by the substitution for paragraph (b) of subsection (3) of the following paragraph:
"(b) balance his books and records relating to any account referred to in paragraph (a) at intervals of not more than [three months] one month, and cause them to be audited at least once annually by
. the auditqr referred to insection 29 (b).".
12. The following section is hereby inserted in the principal Act Inse;ttion of . after section 32: sect1on 32A m
. Act 112 of 1976. "Powers of 32A. (1) Any inspector furnished with inspection
35 inspectors. authority in writing by the board may conduct an investigation to determine whether the provisions of this Act are being or have been complied with and, for that purpose without giving prior notice, may at all reasonable times-
40 (a) enter 'any place in respect of which he has reason to believe that-
(i) any person there is performing an act as an . estate agent; . (ii) it is connected with an act performed by an
45 estate agent; · (iii) there are books, records or documents to
which the provisions of this Act are applic- able;
(b) order any estate agent or the manager, employee 50 · ·or agent of any estate agent-
(i) to produce to him the fidelity fund certi- ficate of that estate agent;
(ii) to produce to him any book, record or other document in the possession or under the
55 control of that estate agent, manager, em- ployee or agent;
(iii) to furnish him, at such place and in such manner as he may specify, with such information ·in respect of that fidelity fund
60 certificate, book, record or other document as he may desire; . ·
(c) examine or make extracts from or copies of any such fidelity fund certificate, book, record ·or other document;
GOVERNMENT GAZETIE, 23 MAY 1980 No. 7011 11
ESTATE AGENTS AMENDMENT Acr, 1980 Act No. S7, 1980
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(d) seize and retain any such fidelity fund certificate, book, record or other document to which any prosecution or charge of improper conduct under this Act may relate: Provided that the person from whose possession or custody any fidelity fund certificate, book, record or other document was taken, at his request shall be allowed to make, at his own expense and under the supervision of the inspector concerned, copies thereof or extracts therefrom.
(2) No person shall- ( a) fail on demand to put at the disposal of any
inspector anything in his possession or under his control or on his premises which may relate to any inspection;
(b) hinder or obstruct any inspector in the exercise of his powers under this section;
(c) falsely hold himself out to be an inspector. (3) Any inspector shall issue a receipt to the owner
or person in control of anything seized and retained under this section.
(4) Any inspector who exercises any power in terms of this section shall, at the request of any person affected by the exercise of that power, produce the inspection authority in writing furnished to him in accordance with subsection (1 ). ".
13. Section 33 of the principal Act is hereby amended- Amendment of (a) by the insertion after paragraph (g) of subsection (1) of section 33 of
the following paragraph: Act 112 of 1976, "(gA) relating to the standard of training and practical :!c:~n2';!} by
experience of estate agents;''; Act 60 of 1978. (b) by the insertion after paragraph (i) of subsection (1) of
the following paragraphs: · " iA) rescribin the times at which accounting records
are to be audited in accordance with sections 29 (b) and 32 (3);
(iB) prescribing the portion of the interest which, and the circumstances in which such portion, may be refunded to the estate agent concerned in terms o section 32 (3) (d);";
(c) by the insertion after paragraph (k) of subsection (1) of the following paragraph:
"(kA) prescribing the conditions on which any person may carry on his business as an estate agent from any residential premises;".
14. The following section is hereby substituted for section 34 of Substitution of th · · I A t· section 34 of e pnnc1pa c · Act 112 of 1976. "Offences 34. Any person who contravenes or fails to comply and penal- with any provision of this Act or any order or request
50 ties. issued or addressed thereunder, shall be guilty of an offence and liable on conviction to a fine not exceeding [two] five thousand rand or to imprison- ment for a period not exceeding [two] five years, or to both such fine and such imprisonmen~
55 15. This Act shall be called the Estate Agents Amendment Act, Short title. 1980, and section 12 shall come into operation on a date fixed by the State President by proclamation in the Gazette.