Section 32(2)(a):

- Moneys deposited in his/her trust account;

- Not immediately required for any particular purpose;
- May be invested in a separate savings or other interest-bearing account;
- All such savings/investment accounts are to be designated in terms of this Section and registered with the
EAAB;

Sections 32(2)(c) and Regulation 9.2 of the

Code of Conduct :
- Interest payable to Fidelity Fund;
- On moneys deposited in a trust / savings or other interest-bearing account;
- When receiving trust moneys in respect of a contract of sale or lease, estate agents must disclose to the
parties that unless they agree, in writing (in a separate document or provision in the agreement), to whom the
interest earned on the trust money is to be paid, the interest so earned will accrue in favour of the Estate
Agents Fidelity Fund;
Estate agents may deduct and retain 50% of interest earned (where there is no mandate) when payment is
made to the EAAB

Section 29:
• Every estate agent to keep accounting records relating to:
• all monies received or expended, including moneys deposited to trust account or invested in a savings
or other interest-bearing account (Section 32(2)(a);
• all assets and liabilities;
• all financial transactions and financial position of the business;
• accounting records to be audited within four months after the final date of the financial year;
• There is no distinction between the type / size of business entity or level of activity on trust account;
• Auditor’s report includes audit on the annual business financial statements and trust account;
• Appointed auditor to be registered with the Independent Regulatory Board for Auditors (IRBA);

TRUST ACCOUNT AND

• Estate agent and auditor must ensure the correct and updated auditor report form is used;
• Principal to ensure auditor report is submitted to EAAB in time.

AUDIT COMPLIANCE

Estate Agency Affairs Board

Block A & B
63 Wierda Road East
Wierda Valley, Sandton
Tel: 011 731 5600 www.eaab.org.za
TRUST ACCOUNT AND AUDIT COMPLIANCE estate agent is operated as a sole proprietor, partnership, close corporation or company and the
requirements for the audit of the business and trust accounts remain irrespective.
Trust money has been entrusted to an estate agent and is retained in trust until the estate agent is lawfully
Estate agents are alerted to the fact that the report contains additional disclosures required
entitled to it or instructed to make payment therefrom to any person.
by the EAAB to address legislative requirements affecting trust accounts held by estate
agents, that may require additional work by auditors performing such engagements and
Applicable provisions & revised auditor report in this respect, estate agents are required to give their appointed auditor reasonable
- Section 29 and 32 of the Estate Agency Affairs Act, 112 of 1976 access to such books and records as the auditor considers necessary, to perform
their duties in terms hereof. The EAAB reserves the right, at its sole discretion,
- Trust account regulations: GNR 1472 of 1977 to institute formal processes relating to any non-compliance with the
provisions of the Act.
Section 32(1):
- Every estate agent to open and keep one or more separate trust accounts;
Submission of Auditors’ Reports
Before submitting your auditor’s report please ensure the
- Account/s shall contain a reference to this section;
following:
- Estate agent or his / her employee to deposit all trust money held or received herein;
- EAAB to be notified of all accounts;

- Employee estate agents need not open a • The report is completed in full and signed by the The revised auditor’s report is available in both PDF
separate trust account; appointed registered auditor, who is registered and Word formats and may be downloaded from
with IRBA and has accepted their appointment either:
The Estate Agency Affairs Board (EAAB) has, in for the relevant estate agency, as per the EAAB
consultation with the Independent Regulatory Board for www.eaab.org.za alternatively from www.irba.co.za
records;
Auditors (IRBA), introduced a revised auditor’s report which
Auditor’s Report submission and proof of
estate agents are required to submit to the EAAB annually, within • Name of the agency / firm which is registered
payment for penalty fees are to be submitted to:
four months of an estate agent’s financial year-end, in order to be with the EAAB;
[email protected]
granted their license to practice. The revised auditor’s report replaces the
• The report reflects the details of all Section 32
previous auditor’s report and with effect from 1 September 2011, only, the Important:
accounts held by the agency;
revised report will be accepted (refer Section 32(4) of the Estate Agency Affairs
Act, 112 of 1976) (hereafter referred to as “the Act”). Ensure sufficient funds in trust account to
• The report indicates the FIC registration number
cover bank charges or arrange for these to be
(Registration is a legal requirement in terms of
The provisions of Sections 29 and 32 of the Act stating that every estate agent must deducted from the business account to prevent
Section 43B of the FIC Act, as an accountable
have accounting records as are necessary to fairly reflect and explain the state of affairs a shortage in the trust account and/or closure
institution. Visit: www.fic.gov.za
of all monies received or expended, including monies deposited to the trust account or by the bank due to inactivity.
interest-bearing account, remains in force. These accounting records (of both the business
and the trust accounts) must be audited within 4 (four) months of the financial year-end of the
estate agent’s business. It is specifically to be noted that the Act draws no distinction whether the