FICA and FAIS as it relates to a lease agreement

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richieacc

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My lease is up for renewal. The agency sent me a mail with this request:

"Should you wish to take option A and renew the lease please note that you need to provide us with all tenants latest payslips in order for us to comply with FAIS and FICA and thus requiring us to do an updated credit check on all tenant/s. There will be a renewal fee charged to you, as per the lease agreement"

I am not aware that these two acts are concerned with the renewal of leases. I don't recall having to submit these documents when I started the lease. Am I under any obligation to furnish them with these documents, or are they over-extending here. And, if I do need to send these to them, how can I know that they will be properly taken care of and not be used to impersonate me?
 
richieacc said:
My lease is up for renewal. The agency sent me a mail with this request:

"Should you wish to take option A and renew the lease please note that you need to provide us with all tenants latest payslips in order for us to comply with FAIS and FICA and thus requiring us to do an updated credit check on all tenant/s. There will be a renewal fee charged to you, as per the lease agreement"

I am not aware that these two acts are concerned with the renewal of leases. I don't recall having to submit these documents when I started the lease. Am I under any obligation to furnish them with these documents, or are they over-extending here. And, if I do need to send these to them, how can I know that they will be properly taken care of and not be used to impersonate me?
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Who is the agency?

FAIS has nothing to do with them at all, and neither does FICA really actually but the question you have to ask yourself is whether you pushing back is worth not getting a renewed lease?
 
FICA is applicable to property managers, FAIS not so as they don't provide financial advice.
 
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ToxicBunny said:
Who is the agency?
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Just Letting

There is no way that I'm just handing over financial data to anybody for any reason. So, yes, it is worth pushing back.

Oh, and I've been at this address since March 2008, I have never had to submit these documents before.
 
richieacc said:
Just Letting

There is no way that I'm just handing over financial data to anybody for any reason. So, yes, it is worth pushing back.

Oh, and I've been at this address since March 2008, I have never had to submit these documents before.
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Tell them you'll supply the docs when they send you the relevant section in FICA and FAIS.
 
They might be requesting the information if you're doing lump sum payments for the year which exceed the current fais/fica limits
 
ScottulusMaximus said:
Tell them you'll supply the docs when they send you the relevant section in FICA and FAIS.
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It's in the FICA Act...it's not commonly-applied but maybe Just Letting are getting their books in order or responding to an audit finding.

They're withing their rights to request this basically.
 
Neoprod said:
It's in the FICA Act...it's not commonly-applied but maybe Just Letting are getting their books in order or responding to an audit finding.

They're withing their rights to request this basically.
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Do you perchance know the section that applies to this?
 
richieacc said:
Do you perchance know the section that applies to this?
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It's in the bottom addendum (List of Accountable Institutions).

Or you can read this simpler article -
https://www.property24.com/articles/why-do-estate-agents-ask-for-fica-documents/24612

Whether you are looking to buy, sell, let or rent a property, you will find that your estate agent will ask you for proof of identity and proof of residential address.

So, if you have been asked for these, there’s no need for concern - the South African Reserve Bank has put certain controls in place through the introduction of the Financial Intelligence Centre Act, No. 38 of 2001, better known as FICA, to effectively fight money laundering and combat the financing of terrorism.

Chas Everitt Nelson Mandela Bay’s Principal, Charlotte Vermaak, says in terms of FICA, estate agents are required to verify customers’ details by collecting supporting documents.
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FICA doesn't require anything about earnings though so the payslip wouldn't be necessary.
 
Neoprod said:
It's in the bottom addendum (List of Accountable Institutions).

Or you can read this simpler article -
https://www.property24.com/articles/why-do-estate-agents-ask-for-fica-documents/24612



FICA doesn't require anything about earnings though so the payslip wouldn't be necessary.
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They have a copy of my ID, and since I'm renting from them, and use their invoice as proof of residence, I'm sure they have my proof of residence. IF these are the documents required for FICA, then they have what they need. Also, AFAIK, they only need my ID in order to do a credit check. So I'm quite concerned why they are asking for payslips.
 
Re renewal fee - if it wasn't there before and the purpose is to (purportedly) pay for these checks to be done, then that's something I would question. I've had to hand in FICA documents to the bank and my insurer before - none of them charged me a fee.
 
Neoprod said:
Re renewal fee - if it wasn't there before and the purpose is to (purportedly) pay for these checks to be done, then that's something I would question. I've had to hand in FICA documents to the bank and my insurer before - none of them charged me a fee.
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I don't think the fee relates to FICA, FAIS, or credit checks. I think it's intended as an admin fee for them. But I've never had to pay this before, which is why I've queried it.
 
They are within their rights to check if your finances are sound to sign a new lease. Peoples circumstances change. They could be liable to the owner if they do not verify that the tenant can afford the lease.
 
Billy said:
They are within their rights to check if your finances are sound to sign a new lease. Peoples circumstances change. They could be liable to the owner if they do not verify that the tenant can afford the lease.
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They are yes... but then to quote legislation that doesn't give them the right is downright retarded
 
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