Page 32 - Selling your Home - The CommFREE guide to all you need to know

interest on monies deposited or invested in terms of section 32(1) or 32(2)(a) of the Estate

Agency Affairs Act;

9.2 shall, before he receives any money in trust in respect of a contract of sale or lease,
disclose to the parties concerned that unless they agree in writing to whom interest earned
on such money must be paid, the interest shall, in terms of section 32(2)(c) of the Estate

Agency Affairs Act, accrue to the Estate Agency Affairs Fidelity Fund;.

9.3 shall, if any money is invested by him pursuant to section 32(2)(a) of the Act or pursuant
to an instruction by the party entitled to the interest on money held in trust by the estate
agent:

9.3.1 invest such money at the best interest rate available in the circumstances at the bank …
where he normally keeps his trust account or accounts, and
9.3.2 Pay the full amount of the interest which accrued on the investment to the party
entitled to such interest, or the Estate Agency Affairs Board, as the case may be, subject to

any written agreement in this regard between him and such party;
9.4 shall not include … any clause in a contract of sale of immovable property negotiated by
him, providing for payment to the seller, prior to registration of transfer of the property in

the purchaser’s name, of any portion of the purchase price entrusted to the estate agent by
the purchaser: Provided that the aforegoing shall not apply if

(a) Good cause exists; and
(b) the purchaser has prior to his signature of the contract in question, consented in

writing in a document executed independently of the said contract, to such payment;
and
(c) Such document contains an explanation of the implications and financial risks of
such payment for the purchaser; and
(d) Such document is signed by both the seller and the purchaser and the estate agent

in question.

Confidentiality by Estate Agent

No estate agent shall, without just cause, divulge to any third party any confidential
information obtained by him concerning the business affairs, trade secrets or technical

methods or processes of a client or any party to a transaction in respect of which he acted as
an estate agent.

The full text of the Estate Agency Affairs Board’s Code of Conduct can be downloaded at the
board’s website www.eaab.org.za

32 32 Title of the book
The CommFREE Guide to Selling your Home