Business Day

MPs lock horns over estate agents bill

- Khulekani Magubane Parliament­ary Writer magubanek@businessli­ve.co.za

MPs on the portfolio committee on human settlement­s are divided over the Property Practition­ers Bill that Minister Lindiwe Sisulu has recently released for public comment.

The bill aims to establish a property ombudsman, who will take on some of the functions performed by the Estate Agency Affairs Board (EAAB).

The ombudsman, as outlined in the bill, will have the power to demand documents from property practition­ers and agencies.

In 2012, the courts ruled against the EAAB more than once when the board requested permission to search Auction Alliance offices countrywid­e without a warrant after Auction Alliance was exposed for having run ghost bids at its auctions.

The courts also ruled that Auction Alliance executives could not be summoned to appear before the National Consumer Commission.

The board believed that Auction Alliance and some of its employees had violated the Estate Agency Affairs Act. The verdicts not only dented the board’s image, but effectivel­y rendered it ineffectua­l in enforcing compliance in a sector it was set up to regulate.

The new bill also seeks to ensure transforma­tion in the sector, which the Department of Human Settlement­s believes is lacking. The department’s data show as little as 3% of the property sector is in black hands.

The new bill will provide for the continuati­on of the EAAB and the appointmen­t of its board members. It will also provide for the establishm­ent of a property practition­ers ombudsman who will enforce compliance and transforma­tion in the sector. Chairwoman of the portfolio committee on human settlement­s Nocawe Mafu said the proposed ombudsman needed extended powers to request documentat­ion from practition­ers and agencies to ensure compliance and transforma­tion.

“The ombudsman will be able to strengthen that [enforcemen­t] function,” Mafu said.

Committee member and DA MP Tarnia Baker said the bill had to provide clarity about the scope of ombudsman powers and what kind of documentat­ion he or she would be entitled to request from practition­ers.

 ?? /The Herald ?? House matters: Human Settlement­s Minister Lindiwe Sisulu hands over a house gift in this file picture. She has released for comment a contentiou­s bill that aims to establish a property ombudsman who will take some functions of the Estate Agency Affairs...
/The Herald House matters: Human Settlement­s Minister Lindiwe Sisulu hands over a house gift in this file picture. She has released for comment a contentiou­s bill that aims to establish a property ombudsman who will take some functions of the Estate Agency Affairs...

Newspapers in English

Newspapers from South Africa