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Agent's ethics: trust accounts and trust money
Opening of trust accounts
Every principal estate agent must open and keep at least one separate trust account with a bank or building society. The Board must be notified of the name of the bank or building society at which the trust account has been opened and the number of the account.
If an estate agent does not immediately require the money deposited in his trust account, he may invest it in separate savings account opened by him with any bank or building society.
When may a principal estate agent not perform any act as an Estate Agent?
A principal estate agent may not perform any act as an estate agent unless a valid fidelity fund certificate has been issued to him and to every person employed by him as an estate agent, including independent contractors rendering estate agency services to him, as well as in the case of a company and close corporation, which are estate agents, to every director of the company and every member of the close corporation.
He may also not perform any act as an estate agent unless he has taken out fidelity fund insurance in respect of every person employed by him, to an amount which in the opinion of the Board is sufficient (currently 10 000.00 Namibian dollars per person).
All money’s received by the firm in it capacity as an estate agent must forthwith be deposited into the trust account.
Accounting records and auditing
Every principal estate agent must keep accounting records of his activities as an estate agent, which fairly reflect and explain the state of affairs of:
1. all money received or expended by him;
2. all assets and liabilities;
3. all his financial transactions and financial position of his business.
He must also keep separate accounting records of any money deposited by him in his trust account and of all money invested by him. These records and accounts must be balanced at intervals of not more than one month.
All the accounting records referred to above must be audited by an auditor within four months after the final date of the year-end of the principal estate agent.