Consumers warned to be vigilant in conducting property transactions

The Estate Agency Affairs Board (EAAB) is urging consumers to be vigilant when doing property transactions and always check with them if the estate agent they dealing with has a valid Fidelity Fund Certificate.

The Board says it has noted an increase in complaints against estate agents or people purporting to be such by consumers of which most of them upon investigating were not registered estate agents.

By law estate agents are required to have a valid Fidelity Fund Certificate issued by the Board for them to practice.

“We urge consumers to ask for this certificate before entering into any property transaction with anyone claiming to be an estate agent. This will ensure that they are protected against illegal practitioners,” said Board Acting Chief Executive Office Mr Nikita Sigaba.

Compared to the same period last financial year, Sigaba added that there has been an increased in a number of complaints lodged against estate agents both legal and illegal.

“For the first and second quarter we have received almost 2500 complaints from consumers against estate agents and with the festive season upon us and people preparing for next year we urge people to be careful and make sure the agent they dealing with has a valid fidelity fund certificate,” added Sigaba.

Sigaba added that although not all the complaints were resolved by the Board since some falls outside of its jurisdiction.

The Board advises consumers to verify banking details of agents with the banks in order to ascertain that the transaction is legitimate.

“It is important to use a registered estate agent as this protects consumers in case of loss of monies deposited to an estate agent account. By using a registered estate agent one is able to claim against the Estate Agency Fidelity Fund which is intended to reimburse persons who in certain circumstances have suffered losses due to theft of trust monies by estate agents”, said Sigaba.

The Board has also been receiving complaints from consumers who have been scammed of their rental money whereby scammers will impersonate an estate agent using fake names and contact details, usually from a reputable firm only for the scammer to disappear once a consumer deposits money in their account.

 It’s important for potential tenants to look out for these red flags and take caution:

1. Never transfer any money to the landlord or rental agent without meeting them or first viewing the property. It’s a cause for concern if the landlord insists on payment based on website photos and descriptions via tele phone conversations.
2. Beware of estate agents or landlords who are eager to sign the lease agreement without vetting and following standard procedures.
3. The “estate agent” is in a hurry to close the deal and is willing to do so at all cost

Issued by the Estate Agency Affairs Board