Buying or Selling Property? Here's why FICA is Non-Negotiable

If you have ever bought or sold property, you've probable had this moment:

Why do I have to send my ID again... didn't I already send this to the attorney?

You are not alone and it is a fair question. Let's break it down in a simple, easy to understand way.

What is FICA?

FICA stands for the Financial Intelligence Centre Act. In South Africa, the FIC Act is a law that requires certain business, like estate agents, attorneys and banks, to verify the identity of their clients and keep record thereof.

In plain English:

• It's there to make sure people are who they say they are

• To prevent fraud, money laundering and illegal activities

• Even if we know you personally, the law still requires us to keep the correct documents on file for compliance and audit purposes. It's a legal requirement, not a trust issue.

Why does the estate agent AND attorney need your documents?

Here's a key point most people don't realise:

Your estate agent and your transferring attorney are two separate accountable institutions.

That means:

• we each have our own legal responsibility under FICA

• we each need to keep our own records

• we cannot simply rely on each other's files, as we each have our own unique legal checklist applicable to our industry

Even though we work together on the same transaction, the law requires both parties to independently verify your details. So when we ask you for your documents, it's not duplication for the sake of it, it is compliance.

What documents are required?

The exact documents depend on whether you are buying or selling as an individual or through an entity, below is a list of the basic document requirements:

Individual

• Copy of ID (front and back) or passport

• Proof of residential address - not older than 3 months

• Proof of SARS registration

• Source of funds

Married Individuals

• Marriage cerficate

• Antenuptial contract (if applicable)

Private Company (PTY LTD)

• Company registration documents from CIPC

• All directors' ID's

• Proof of address for each director - not older than 3 months

• Proof of address for the company - not older than 3 months

• Proof of SARS registration

• Source of funds

• Resolution for the relevant transaction

• Beneficial Ownership Information

Closed Corporations (CC)

• CK Documents

• Members ID's

• Proof of address for each member - not older than 3 months

• Proof of address for the CC

• Proof of SARS registration

• Source of funds

Trusts

• Trust Deed

• Letter of Authority

• Trustees' ID's

• Proof of address for each trustee - not older than 3 months

• List of named beneficiaries

• Proof of address for the trust

• Proof of SARS registration

Is your information safe?

Yes, your information is handled in line with the Protection of Personal Information Act (POPIA), which means:

• It must be kept secure

• It may only be used for its intended purpose

• It cannot be shared with external parties without your consent

eXp make use of a secure compliance platform called nCino (previously known as DocFox), which allows you to safely upload your documents via a secure link if you prefer not to send it via email. This is also how the documents are stored on our end.

Final thoughts

FICA can feel like an admin overload and duplication, especially when you are excited about a property transaction. We will do our best to make it as painless as possible.

Let's keep in mind, at its core it serves a very important purpose:

• It protects the integrity of the transaction

• It protects all parties involved

• It ensures everything is done above board

Now you know, it is not just paperwork, it's part of doing things properly and required compliance.

If you ever feel unsure about what is required or why, don't hesitate to ask, we are always happy to explain the process and the documents relevant to your unique situation.