R10. Vicarious Responsibility

11. Vicarious responsibility

Code:

  1. Every estate agent who is the sole proprietor of an estate agency business or a partner in a partnership or a director of a company or a member of a close corporation contemplated in paragraph (b) of the definition of “estate agent” in section 1 of the Act carrying on the business of an estate agent, shall be held responsible for any contravention of or failure to comply with this code of conduct by any other partner, director, or member or by any estate agent in the service of such sole proprietorship, partnership, company or close corporation, unless he has prior to such contravention or

Failure to comply taken all reasonable steps to prevent the same and could not in circumstance have prevented such contravention or failure to comply.

Discussion:

In terms of this clause, the principals of an estate agency business assume responsibility for any contravention of or a failure to comply with the code of conduct by their fellow principals and employee estate agents and impose an obligation upon such principles to take all reasonable steps to ensure compliance with the Code by such persons.

The effect of this provision is that principals are compelled to play an active role in ensuring such compliance.

GOVERNMENT NOTICES R 1799 OF 29 AUGUST 1986 AND R 2106 OF 3 OCTOBER 1986 ARE HEREBY REPEALED.

THIS NOTICE WILL COME INTO OPERATION ON 1 APRIL 1993.

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