By Prof Graham Paddock

For some time there has been confusion as to whether managing agents must register with the Council for Debt Collectors and operate a separate trust account under the provisions of the Debt Collectors Act, 114 of 1998 (“the DCA”), in addition to the trust account they must operate under section 32 of the Estate Agency Affairs Act, 112 of 1976 (“the EAAA”).

Put simply, it is now clear that a managing agent need not operate two separate trust accounts, one under the EAAA and another under the DCA. A managing agent must credit all levies received to an “estate agency” trust account opened under the EAAA.
Thanks are due to NAMA and the Debt Collectors Council for their ongoing efforts on behalf of the managing agency industry.
Article reference: Volume 9, Issue 1, Page 2
Professor Graham Paddock is the Senior Partner at Paddocks (www.paddocks.co.za) and the Director of Mystrata South Africa (www.mystrata.com)
This article is published under the Creative Commons Attribution license.
3 Comments. Leave new
Dear Graham
Could you please indicate where I can get more information and formal correspondence on this matter. On the Institute of Estate Agents of South Africa website it states that Estate agencies which collect rents and/or levies must register with the debt collection agency. I would like to know how the estate agency complies with all the provisions of sections 9 and 20 of the debt collection act.
Good day. Are there fixed rates that debt collectors must ask from a owner who is 3 months in arrear in a Sectional Title Scheme if they work with the Managing Agent? Thanks. Will keep checking for answer.
Hi Susan,
Thank you for your comment. Please note that our legal team would need to assist you with this query. Please email consulting@paddocks.co.za and the team will provide you with a no-obligation quote for their assistance.
Kind regards
Paddocks Team