Fidelity Fund Certificates are the key to operating as a fully functional property practitioner
Fidelity Fund Certificates explained
Category News
The world of real estate is one filled with rules and regulations. Property practitioners have to be well versed in the ins and outs of the industry, as well as up-to-date with any new laws and certifications. The Fidelity Fund Certificate (FFC) is issued by the Property Practitioners Regulatory Authority and is renewed every 3 years.
Why is a Fidelity Fund Certificate important?
Property practitioners must have an FCC to receive payments and commissions from buyers and sellers. If an FFC is applied for and hasn't yet been confirmed, the property practitioner is only allowed to practise if a valid FFC was previously issued. Any claims to payment or commission made outside a valid FCC will not be considered. This rule is put in place to protect the public and safeguard the clients of real estate agencies. This reduces the risk of corrupt property practitioners and property management fraud.
When will a Fidelity Fund Certificate not be issued?
A property practitioner will not be granted an FFC in the event of:
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Lack of prescribed practical experience
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Previous dismissal of position due to unacceptable conduct
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Does not have the required training
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Has previously been convicted of an offence
Property practitioners must provide conveyancers with a copy of their valid FCC. This will ensure they are paid out their commission. Clients are advised to check the FCC compliance of any property practitioner they enlist to assist with the buying, selling or leasing of their properties.
What constitutes a property practitioner?
A real estate agency usually employs dedicated professionals to provide services to its clients. The role of which involves the minutiae of property management. Property practitioners are knowledgeable individuals who negotiate agreements, exhibit properties for sale and leasing and collect or receive rent from tenants. They can also assist in other property management issues such as maintenance checks on leased property, showcasing houses on open days, and offering advice on zoning laws, transfer costs and more.
Renewal of your Fidelity Fund Certificate
All renewals must be done through the Property Practitioners Regulatory Authority. All applications should be sent through no later than 31 October of every year, for the following year's certificate. All property practitioners should ensure that they use their correct reference number and firm PIN when paying for their individual renewal fees. Interns and full-status property practitioners will be issued their FFCs after all the principals of the estate agency have received theirs. FFCs will only be issued if the estate agency in question is not disqualified from the Estate Agency Affairs Act in terms of Section 27. The estate agency is required to have fully licensed professionals on their staff complement to ensure total customer satisfaction. Potential clients have become more adept at researching their estate agencies and have high expectations when it comes to handling their property management requests.
Operating between Fidelity Fund Certificates
Knowledge is power and is essential to every successful realtor's brand. While waiting for your FFC to be approved, you can still offer property advice and marketing tips. You are not allowed to accept payments for houses sold, leases or transfers, or convey your payment details to conveyancers. To be on the safe side, property practitioners should rather provide support and research assistance to the rest of the team while waiting for their FFCs to be approved and issued.
REALGLEN Properties has dedicated property practitioners who are fully qualified. We are attentive and cater to every query with the utmost professionalism. Contact us today for a tailored real estate service.
Author REALGLEN Properties
Published 21 Nov 2023 / Views -