East London property mogul Xoliswa Tini has bad news for those who take estate agents at face value — among even the reputable ones are some crooks.
“The consequences of not checking an agent's credentials are dire. The seller could lose all their money and the person who paid may never take ownership. It is that serious.
“People must be more careful. When approached by an estate agent, either for selling or for buying, they should check the agent’s qualifications. These include an NQF4 certificate.
"If the agent is in the process of obtaining it they must be linked to a mentor within an estate agency. And this agency must have a Fidelity Fund Certificate.”
For your own safety you should ask for a copy of the FFC. It is your right
The agency's FFC is its licence to trade, and each agent must in turn have their own FFC.
“For your own safety you should ask for a copy of the FFC. It is your right.”
If the agent is a scam artist, the sale is fraudulent.
"But there is a failsafe check because it still has to go to the conveyancing attorneys and they cannot pursue any registration of any property without having requested the FFCs of the agent, the company and the company’s principal.
“These steps, if properly followed, will protect you from unscrupulous agents taking the proceeds of the sale. But never pay money directly to an agent.”
In most cases the shysters will have been previously employed in the industry and they know the operating procedures.
“They convince sellers to give them a mandate and get “For Sale” boards in their own name.
“Some people will trust them and won’t do their homework. The FFC is insurance that if the deal is not lawful then the harmed parties have recourse through the Property Practitioners Regulatory Authority.
"But this falls away if they haven’t checked the illegal agents or agencies FFC.”
It is a highly responsible position. If one of my agents does bad business, bending the rules, then the buck stops with me
Tini, who founded Xoliswa Tini Property Services in 2005, said the PPRA governs all those operating in the property sector, from agents and agencies to lawyers, quantity surveyors, developers and builders.
“I’ve been a principal of a company for a long time. It is a highly responsible position. If one of my agents does bad business, bending the rules, then the buck stops with me.
"The buyer or the seller can take the case to the PPRA. If it found my company guilty, then the PPRA compensates the wronged party and takes action against me, in my role as principal.”
“There are lawyers out there claiming to be conveyancers. But conveyancing is a specialised role and a lawyer needs additional qualifications to do it.
"It is up to them to check that all aspects of the deal are correct, and that the agent, the agent’s company and the principal have the necessary legal standing.”
No money can legally paid without all the steps in place -- and “legally” is the key word.
Sadly, said Tini, "most of the people caught in these scams are first-time buyers or sellers”.
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