The Sectional Title Industry is vunerable to mismanagement of Trust Funds and Trustees who appoint a managing agent should ensure that the agent is registered under the Estate Agency Affairs Act and that all money handled on behalf of the body corporate, is covered in terms of section 32 (1) of the Estate Agency Affairs Act.
Through compliance with this Act managing agents are issued with a Fidelity Fund Certificate and all trust monies are insured by the Estate Agencies Fidelity Insurance.
Trustees who appoint a managing agent have a fiduciary relationship with their body corporate and need to ensure that they seek proof of a managing agent’s Fidelity Fund Cerificate.
Further corporate compliance would also include registration as debt collectors, compliance with the Health and Safety Act and Workmen’s Compensation.
The National Association of Managing Agents (NAMA) is a well known representative body within the industry and acknowledges and embraces the fact that it is regulatd by the Estate Agency Affairs Act.