FORMER Auction Alliance CEO Rael Levitt is
allegedly trading unlawfully in real estate without the required
certification, according to the Estate Agency Affairs Board (EAAB).
To lawfully trade in — and make profit from — real estate, an individual or company must be in possession of a valid Fidelity Fund Certificate (FFC), that only the EAAB can issue, in terms of the Estate Agency Affairs Act.
However, according to EAAB CEO Bryan Chaplog, at least three property companies, in which Levitt is listed as a director do not hold the required certificate: Auction Alliance, Dealcom, and Dealcom Capital.
Dealcom, which was started in about 2007, has become the new brand of Levitt’s property enterprises. Two former directors who spoke to Business Day this week confirmed that Dealcom administered many of Levitt’s property deals.
But Chaplog insists that Dealcom has not applied for an FFC through the EAAB, and, therefore, is trading in an irregular manner.
"If a firm or any individual is rendering services that fall within the definition of what defines an estate agent, it will be contravening section 26 and 34A of act 112 of 1976 of the Estate Agency Affairs Act," he said, adding that, "The EAAB will take steps against any firm that does not have its paperwork in order."
For many years, Auction Alliance held a valid FFC through the EAAB.
However, the firm was rocked by scandal in 2012 when it emerged that it regularly employed ghost bidders on its auction floor to rig live auctions. It also had serious allegations of corruption and fraud levelled against it, the investigations into that are still ongoing.
That same year, the firm re-applied to have its FFC validated, but did not furnish the EAAB with an audited set of financials, which is a requirement. Despite attempts to have Auction Alliance and Levitt return the FFC in its possession, it refused to do so, on legal grounds.
Levitt did not respond to questions that were put to him through his lawyers.
To lawfully trade in — and make profit from — real estate, an individual or company must be in possession of a valid Fidelity Fund Certificate (FFC), that only the EAAB can issue, in terms of the Estate Agency Affairs Act.
However, according to EAAB CEO Bryan Chaplog, at least three property companies, in which Levitt is listed as a director do not hold the required certificate: Auction Alliance, Dealcom, and Dealcom Capital.
Dealcom, which was started in about 2007, has become the new brand of Levitt’s property enterprises. Two former directors who spoke to Business Day this week confirmed that Dealcom administered many of Levitt’s property deals.
But Chaplog insists that Dealcom has not applied for an FFC through the EAAB, and, therefore, is trading in an irregular manner.
"If a firm or any individual is rendering services that fall within the definition of what defines an estate agent, it will be contravening section 26 and 34A of act 112 of 1976 of the Estate Agency Affairs Act," he said, adding that, "The EAAB will take steps against any firm that does not have its paperwork in order."
For many years, Auction Alliance held a valid FFC through the EAAB.
However, the firm was rocked by scandal in 2012 when it emerged that it regularly employed ghost bidders on its auction floor to rig live auctions. It also had serious allegations of corruption and fraud levelled against it, the investigations into that are still ongoing.
That same year, the firm re-applied to have its FFC validated, but did not furnish the EAAB with an audited set of financials, which is a requirement. Despite attempts to have Auction Alliance and Levitt return the FFC in its possession, it refused to do so, on legal grounds.
Levitt did not respond to questions that were put to him through his lawyers.
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