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The Estate Agents (Accountant's Certificate) Rules

Legal Notice 36 of 1989

This is the latest version of this Legal Notice.
The Estate Agents (Accountant's Certificate) Rules
Citation
Legal Notice 36 of 1989
Primary work
Estate Agents Act
Date
31 December 2022
Language
English
Type
Legal Notice
Original enactment
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LAWS OF KENYA

ESTATE AGENTS ACT

THE ESTATE AGENTS (ACCOUNTANT'S CERTIFICATE) RULES

LEGAL NOTICE 36 OF 1989

  • Published in Kenya Gazette Vol. XCI—No. 6 on 10 February 1989
  • Commenced on 10 February 1989
  1. [Revised by 24th Annual Supplement (Legal Notice 221 of 2023) on 31 December 2022]

1. Citation

These Rules may be cited as the Estate Agents (Accountant’s Certificate) Rules.

2. Interpretation

(1)In these Rules unless the context otherwise requires—"accountant’s certificate" means the certificate provided for by rule 3;"estate agent" means any person whose name is duly entered upon the register of estate agents kept in accordance with section 7 of the Act;"the Board" means the Estate Agents Registration Board;
(2)The expressions "client", "client account", and "client money" have the meanings assigned to them in the Estate Agents (Accounts) Rules (sub. leg).

3. Accountant’s certificate

Subject to these Rules, every estate agent shall once in every practice year deliver to the Board a certificate signed by an accountant and complying with these Rules.

4. Qualification of accountant

(1)An accountant is qualified to give an accountant’s certificate under these Rules if—
(a)he has neither been at any time during the accounting period, nor subsequently, before giving the certificate, become a partner, clerk or servant of the estate agent or any partner or co-director of any company of which he is a member of; and
(b)he is not subject to notice of disqualification under paragraph (2);
(2)In either of the following cases, that is to say, where—
(a)the accountant has been found guilty by the Disciplinary Tribunal of his professional body of professional misconduct or discreditable conduct; or
(b)the Board is satisfied that an estate agent has not complied with the provisions of the Estate Agent (Accounts) Rules (sub. leg), in respect of matters not specified in an accountant’s certificate and that the accountant was negligent in giving such certificate, the Board may at any time notify the accountant concerned, that he is not qualified to give accountant’s certificate, and it may give notice of that fact to any estate agent on whose behalf he has given an accountant’s certificate, and after the accountant has been so notified, unless and until the notice is withdrawn by the Board, he is not qualified to give an accountant’s certificate.

5. Duty of accountant

(1)With a view to the signing of an accountant’s certificate an accountant is not required to do more than—
(a)make a general test examination of the books of account of the estate agent;
(b)ascertain whether a client account is kept and operated in accordance with the Estate Agents (Accounts) Rule (sub. leg);
(c)make a general test examination of the bank pass books and statements kept in relation to the estate agent’s practice;
(d)make a comparison, as at not fewer than two dates selected by the accountant, between—
(i)the liabilities of the estate agent to his clients as shown by his books of account;
(ii)the balance standing to the credit of the client account; and
(e)ask for such information and explanations as he may require arising out of paragraphs (a) to (d);
(2)If after making the investigation prescribed by paragraph (1), it appears to the accountant that there is evidence that the Estate Agents (Accounts) Rules (sub. leg) have not been complied with, he shall make such further investigations as may be necessary to enable him to sign the accountant’s certificate.

6. Form of accountant’s certificate

An accountant’s certificate delivered by an estate agent shall be in the form set out in the Schedule or in a form to the like effect approved by the Board.

7. Powers of the Board

The Board shall, in each practice year, be satisfied that the delivery of an accountant’s certificate is unnecessary, and shall not require evidence of that fact, in the case of an estate agent who—
(a)holds his first current practising certificate; or
(b)after having for twelve months or more ceased to hold a current practising certificate, holds his next current practicing certificate; or
(c)delivers to the Board a statutory declaration stating that the Estate Agents (Accounts) Rules (sub. leg) did not apply to him because he had not, during the period to which the declaration refers, practised on his own account either alone or in partnership or held or received client’s money; or
(d)has ceased to hold a current practising certificate and, if he has at any time after the 9th February, 1986, held or received client’s money, has delivered an accountant’s certificate covering an accounting period ending on the date upon which he ceased to hold or receive client’s money; or
(e)has at no time since the 9th February, 1986, held a current practising certificate or held or received client’s money.

8. Accounting period

Subject to rules 9, 10 and 11 the accounting period specified in an accountant’s certificate shall—
(a)begin at the expiry of the last preceding accounting period for which an accountant’s certificate has been delivered;
(b)cover not less than twelve months;
(c)terminate not more than six months before the date of the delivery of the certificate to the Board; and
(d)where possible correspond to a period or consecutive periods for which the accounts of the estate agent or his firm are ordinarily made up.

9. Duration of accounting period

The accounting period specified in an accountant’s certificate delivered during the practice year beginning on the 9th February, 1986 shall begin on—
(a)the date to which the estate agents books were last made up before the 9th February, 1986;
(b)if the books were not made up during the practice year beginning on the 9th February, 1986, either on the 9th February, 1986, or on the day upon which the estate agent began or began again to hold or receive client’s money, whichever be the later; or
(c)in the case of an estate agent retiring from practice who has ceased to hold or receive client’s money after the 9th February, 1986, the period up to the date upon which he so ceased.

10. Accounting periods for firms of estate agents

In any practice year beginning on or after the 9th February, 1986—
(a)in the case of an estate agent who—
(i)becomes under an obligation to deliver his first accountant’s certificate; or
(ii)having been exempt under rule 7 from delivering an accountant’s certificate in the previous practice year becomes under an obligation to deliver an accountant’s certificate, the accounting period shall begin on the date upon which he first held or received client’s money or, after such exemption, began again to hold or receive client’s money, and may cover less than twelve months, and shall in all other respects comply with rule 8; and
(b)in the case of an estate agent retiring from practice who, having ceased to hold or receive client’s money, is under an obligation to deliver his final accountant’s certificate, the accounting period shall end on the date upon which he ceased to hold or receive client’s money, and may cover less than twelve months, and shall in other respects comply with rule 8.

11. Accounting periods for estate agents not exempt under rule 7

(1)In any practice year beginning on or after the 9th February, 1986, in the case of an estate agent who—
(a)was not exempt under rule 7 from delivering an accountant’s certificate in the preceding practice year; and
(b)since the expiry of the accounting period covered by such accountant’s certificate has become, or ceased to be a member of a firm of estate agents, the accounting period may cover less than twelve months and shall in all other respects comply with rule 8.
(2)In the case of an estate agent who has two or more places of business—
(a)separate accounting periods, covered by separate accountant’s certificates, may be adopted in respect of each such place of business provided that the accounting periods comply with rule 8; and
(b)the accountant’s certificate or accountant’s certificates delivered by him to the Board in each practice year shall cover all client’s money held or received by him.

12. Complaints

If any estate agent fails to comply with these Rules a complaint in respect of such failure may be made by or on behalf of the Board to the Disciplinary Committee.

13. Certificate from Registrar

On receipt either of an accountant’s certificate or of a declaration under rule 7(3) the Registrar will forward to the estate agent a certificate under his hand stating that an accountant’s certificate for a specified period has been received or that no accountant’s certificate is required for a specified period, as the case may be.

14. Final proof

A certificate under the hand of the Registrar is, until the contrary is proved, evidence that an estate agent has or has not, as the case may be, delivered to the Board an accountant’s certificate or supplied any evidence required under these Rules.

15. Notice of estate agent

Every notice to be given by the Board under these Rules to an estate agent shall be in writing under the hand of the Registrar and sent by registered post to the last address of the estate agent appearing in the register of estate agents kept by the Registrar under section 7 of the Act and when so given and sent. is taken to have been received by the estate agent within seven days after the date of posting.

16. Notice to accountant

Every notice given by the Board under these Rules to an accountant shall be in writing under the hand of the Registrar and sent by registered post to the address of the accountant shown on an accountant’s certificate or appearing in the records of the accountancy body of which the accountant is a member, and when so given and sent, is taken to have been received by the accountant within seven days after the date of posting.

SCHEDULE [r. 6]

FORM OF ACCOUNTANT’S CERTIFICATE

Note.—In the case of a firm with a number of partners or company with directors carbon copies of the certificate may be delivered provided section 1 below is completed on each certificate with the name of the individual estate agent.
1.Estate agent’s full name.
2.Firm(s) name(s) and address(es).Note.— All addresses at which the estate agent(s) practice(s) must be covered by an accountant’s certificate or certificates.
3.State whether practising alone or in partnership.
4.Accounting period(s).Note.—The period(s) must comply with the Estate Agents (Accountant’s Certificate) Rules.

ACCOUNTANT’S CERTIFICATE

In compliance with the Estate Agents (Accountant’s Certificate) Rules, 1989.I, ................................................. have examined the books, accounts and documents of the above-named estate agent relating to the above practice(s) produced to me and I hereby certify that from my examination pursuant to rule 5 of the Estate Agents (Accountant’s Certificate) Rules, and from explanations and information given to me, I am satisfied that—
(1)During the above-mentioned period(s) he has complied with the provisions of the Estate Agents (Accounts) Rules (sub. leg) except so far as concerns—
(a)certain trivial breaches due to clerical errors or mistakes in book-keeping, all of which were rectified on discovery; I am satisfied that none of such breaches resulted in any loss to any client;
(b)the matters set out on the back hereof;
(2)Having retired from active practice as an estate agent he ceased to hold client’s money on the:Particulars of the Accountant ...........................................Full name ................................................................Qualifications (if any) .......................................Firms name .......................................................Address ................................................................Signature ..............................................................Date ...............................................................To: The Registrar,The Estate Agents Registration Board,P.O. Box NAIROBI.Delete clause not applicable.
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History of this document

31 December 2022 this version
10 February 1989
Commenced