Clampdown on bogus estate agents

THE Estate Agents Council of Zimbabwe (EACZ) has launched a nationwide crackdown on bogus estate agents in an attempt to bring sanity in the sector.

The blitz has so far netted 44 unregistered agents whose cases are at various stages with the police and the courts.

Scores of desperate homeseekers have lost thousands of dollars to fraudsters who are advertising in the local media that they are selling properties and leasing houses.

In May this year police in Bulawayo arrested Thulani Ncube who was suspected to be part of a syndicate that was fraudulently selling people’s houses.

He was found with 32 national identity cards which he was suspected to have been using to illegally process property sales.

Ncube would allegedly approach the High Court for eviction orders so that he would make occupants vacate premises that he would have earmarked for sale.

He would also target properties whose owners are in the diaspora and tenants either paid rentals to relatives or deposited the money in the owner’s bank accounts. In most of the cases the tenants did not know the owners of the properties they were renting.

In an interview yesterday, EACZ chairman Mr Nicodimus Kuipa said the council was conducting the operation together with stakeholders such as the Criminal Investigations Commercial Crimes Unit in Harare and Bulawayo.

Mr Kuipa said EACZ compliance officer Mr Stanford Madzora was doing countrywide spot checks to flush out unscrupulous dealers in the sector.

“We have a nationwide crackdown on bogus estate agents which has so far netted 44 unregistered agents. The compliance officer is visiting all cities and towns to do spot checks and this past week he was in Bulawayo for the trial of one of the bogus estate agents.

“We are gladly working with the Criminal Investigations Commercial Crimes Unit in Harare and Bulawayo as well as uniformed police officers from different police stations throughout the country. Our members who are duly registered also assist us with leads whenever they encounter bogus firms in the market,” said Mr Kuipa.

He urged the public to deal with registered estate agents.

“As Estate Agents Council of Zimbabwe we advise the public to deal with registered estate agents for their safety and protection. We encourage members of the public to use registered estate agency firms. Registered estate agents are required by law to have compensation fund certificates issued and renewed annually by the Council.

“The compensation fund acts as an insurance, where in the event of members of the public suffering any losses through the registered estate agents whom they would have engaged for business, they can approach the Council for compensation, especially if it is established that the loss was through their engagement with registered estate agents,” he said.

EACZ regulates the agents in terms of the Estate Agents Act, which requires that all operating in the sector be registered with the council for accountability, with two critical registration conditions being having at least one principal registered estate agent, that is a fully qualified agent, and having a compensation fund.

EACZ does an audit every year to check whether there are any irregularities in the operations of estate agents.

The main reason why real estate agents should register with EACZ is to ensure there is recourse to justice in case of a dispute between transacting parties.

He also warned members of the public to verify with EACZ before engaging in business with any estate agent and individuals.

“The public should always phone the Estate Agents Council of Zimbabwe to verify the registration status of the estate agent if they are in doubt of. Additionally the public is also urged to always demand to see a firm’s current compensation fund certificate before entrusting the firm with a mandate to sale or lease their property.

“A compensation fund certificate is an annual practising licence which is different from certificates of incorporation and other company registration documents which fraudsters trick the public with,” said Mr Kuipa.

He said registered estate agents are also required to open trust accounts for the purposes of banking clients’ funds adding that funds held in this account can only be withdrawn at the instigation of the seller or buyer as the case maybe.

In September this year, EACZ released names of 79 estate agents and individuals who were blacklisted for either failure to renew their membership in compliance with various legislative requirements or for not registering with the council in the first place. This means they were barred from selling or managing property until they have become compliant.

Meanwhile, investigations revealed that a number of them have defiantly continued trading despite being blacklisted.-Chronicle.co.zw