Allegations of misconduct made by disgruntled investors have prompted the Estate Agency Affairs Board (EAAB) to investigate two more agencies.
The firms are Constantia Sectional Title Management (CSTM) in Johannesburg and Dusty Moon Investments, trading as Seeff Klerksdorp, in Klerksdorp.
The EAAB said in a statement yesterday that it was following up on allegations of substantial shortfalls in the trust account of Dusty Moon Investments.
“The alarming nature of the allegation necessitated immediate EAAB intervention. An investigation was, accordingly, initiated and the outcome of that investigation is presently being awaited,” the board said.
Seeff Properties withdrew its franchise when it became apparent that Dusty Moon was not managing the franchised estate agency properly.
The EAAB said it had launched a comprehensive investigation of CSTM following allegations of improprieties in the firm’s conduct.
The EAAB has completed a total of 34 inspections since the beginning of the year, 14 in Gauteng and 10 each in the Western Cape and KwaZulu-Natal. In some cases, trust account details were inconsistent between the EAAB and the estate agents, while in others the non-principal fidelity fund certificates, which are required by the Estate Agency Affairs Act, were invalid.
The investigations follow a probe into Wendy Machanik Property Holdings (WMPH) because of misappropriation or misuse of money in trust funds last year.
Former EAAB chief executive Nomonde Mapetla was dismissed soon after the investigation into WMPH.
Mapetla reportedly claimed that she had been “hounded out” because she had done what needed to be done under the law regarding WMPH.
She said this was not the only errant estate agency and there were “others that need to be pursued”. Mapetla believes vested interests applied pressure on the EAAB to dismiss her to avoid a crackdown.
In January, the EAAB said it would probe Keith Wakefield Properties after complaints from investors in the multimillion-rand Cotswold Downs development. - Business Report
