Warning from Estate Agency Affairs Board



Reports that maverick estate agents are coercing elderly or vulnerable ratepayers in Cape Town to sell their homes prematurely because they fear they will not be able to afford the city's new rates bills have brought a stern warning from the property industry's watchdog body. Stanley Moshidi, CEO of the Estate Agency Affairs Board, referred unscrupulous agents to the industry's Code of Conduct which deals with both the duty to disclose (all matters pertaining to the sale of a property) and prohibition against undue influence. Moshidi was reacting to media reports that unscrupulous estate agents were "preying on" elderly ratepayers who feared losing their homes as the new rates system came into effect. In addition, some agents were thought to be acquiring the properties for themselves, for resale later. "We have learnt that estate agents have been accused of playing on the fears of people who believe that the new rates would make them unable to afford to keep up their homes. People have been urged to put their properties on the market before the new rates come into effect," said Moshidi. "This is totally unacceptable, both ethically and in terms of the Code of Conduct. "We have also heard that agents may be requiring the properties for themselves in order to resell later. The Code also deals with this." Moshidi emphasised that the Board would take action against any agent contravening the terms of the Code of Conduct. Implementation of the Cape Town unicity's new rates policy was on July 1. Many ratepayers, especially the elderly and others with fixed incomes, who had bought inexpensive properties in what are now upmarket suburbs, have been hit particularly hard. However, elderly people qualify for certain rebates, according to a set sliding scale. In earlier reports, Cape Town unicity deputy mayor Belinda Walker had also warned estate agents to "back off". Walker said that her office had received a number of reports from residents in the City Bowl and urged residents not to panic. "The last thing the council wants is to precipitate houses being sold at knock-down prices." l Members of the public wishing to make complaints against unethical or unscrupulous behaviour by estate agents can do so in writing to the Estate Agency Affairs Board, Private Bag X10, Benmore 2010. The Argus : Weekend Argus Property Edited by : Graham Norris