Dear Colleagues
B-BBEE Certificates – Hold Your Horses
The PPRA’s acknowledgment that valid certificates, as required by the Act, need not be compliant came as a huge relief to thousands of firms.
All firms with an annual turnover exceeding R2.5 million and more than 51% white ownership are still required to provide valid certificates, which of course comes at a cost.
Verification agencies see this as a business opportunity and are offering services and discounts. EVASA has communicated a discounted rate available to Rebosa members. Please note that we do not have any arrangement with EVASA and are not recommending their services.
We strongly advise you to hold off on proceeding in this regard, as we are still trying to negotiate an exemption from this requirement. Rebosa supports transformation and we believe that the money spent on valid but non-compliant BEE certificates (which almost all will be), can be better spent by contributing to the Transformation Fund. We will update you as soon as more information is available.
A BEE certificate is only required when applying for an FFC which for most will only take effect from 1st July next year for the following three-year period.
PropCert
Many of you face challenges when submitting queries to the PPRA. Supporting documentation and proof of payments often get lost in email exchanges between various PPRA departments, requiring repeated submissions of missing information. Each year, Rebosa receives thousands of such queries from members seeking assistance in resolving these matters.
To reduce frustration and streamline the process, we have developed an efficient online query platform called PropCert. This platform consolidates all the information relating to your query into a single PDF document, which is automatically sent to both you and Rebosa, ensuring all documentation is stored in one place and allowing us to resolve these queries more efficiently.
We strongly encourage you to use this feature when submitting a PPRA query to us. The system is now live on our website and can be accessed via the following link:
Undesirable Business Practices – Payment of Fees to Homeowners’ Associations
We remain concerned that HOAs have no regard for agents having to comply with the PP Act and are still charging accreditation fees. This is now costing agents who are abiding by the law their livelihoods and putting those agents who have paid at risk of facing sanction.
In our last meeting with the PPRA we can confirm that they have engaged with their attorney’s and agents still engaging in these practices are now being charged. This could ultimately result in agents losing their FFCs.
The PPRA has also reported HOAs to the Competition Commission which is carrying out its own investigation.
Interest on Trust Accounts
Following the PPRA’s decision to revise its policy on interest earned from trust accounts – where interest must be split equally between the firm and the PPRA (50:50), unless otherwise specified in writing by the parties in a lease or sale agreement – we continue to receive queries regarding the 100% interest that was previously paid to the PPRA. Many are asking whether this money will be refunded to the firm.
Please note that the practice directive came into effect on 16 August 2024 and the PPRA has confirmed that this does not apply retrospectively and no refunds will be given for the previous years.
However, please note the following as received by email from the PPRAs Fidelity Fund Manager, Happy Moroamohwebedu regarding the 2024 audit submission:-
“From Finance’s perspective, please note that all Audit reports received effective from August 2023, 50:50 split applied. We are aware that some Firms already paid 100% upon submission of the Audit reports before invoices could be levied (before Board’s resolution). Invoices of 50:50 split were implemented after the Board’s approval and applied to all audit reports submitted from August 2023 onwards. For those who paid 100% already, their accounts are currently on overpayment / on credit of the remaining 50% considering that their accounts were not in any arears prior. For those on credit balance, credit is due to them and never charged them 100% but only 50%. Their credit / overpayment will be offset against future invoices. Please note that there is no / (should not be) invoices ever levied at 100%”.
The link to the practice directive is below:
practice_directive_on_interest_earned_from_trust_accounts_final_document_february_2024_16082024-4
We trust this clarifies.
New Occupational Qualification Real Estate
Despite continuous engagement with the PPRA on a clear way forward to implementing the new standards of training for candidate property practitioners, we are no closer to providing you with any clarity.
We can inform you that we have submitted a formal request to the PPRA to grant Candidate Property Practitioners an exemption from having to submit a request and show good cause for an extension after the 180-day candidacy period has elapsed, as contemplated in Regulation 33.4.5. This exemption has been sought given that the new qualification will take longer than 180 days before the candidate can write the PDE exam and the Act allows for a 1-year FFC.
The PPRAs education committee have held several meetings recently and we hope to have some clarity on the many queries we are receiving.
Historical Penalties
It has come to our attention that property practitioners seeking to return to the industry are being asked to submit supporting documentation along with their affidavits, detailing their employment outside the real estate sector during their period of absence. This documentation, such as payslips, employment contracts, or bank statements, was apparently required to verify the information in their affidavits to absolve them from paying penalties.
We understand that moving forward, the PPRA will only require affidavits confirming inactivity during the period of absence.
You can find the PPRA communique and affidavit by accessing the links below:-
important_update_regarding_fidelity_fund_certificate_renewal_and_historical_penalties_1718898225-3
Rebosa Annual General Meeting 2024
The Annual General Meeting of Rebosa will be held on Wednesday, 9 October 2024 at 11h00 on Zoom.
The notice and supporting documentation have been emailed to all members.
Attendance must be confirmed by registering on the link below to receive the Zoom meeting ID and password:-
https://www.rebosa.co.za/2024-annual-general-meeting/
Attendance at the AGM is limited to members in good standing.
Good News for Agents Operating in Tshwane
The City of Tshwane has promulgated a by-law for the control of outdoor advertising. Sections 42 and 80 have a bearing on real estate agent signs. Section 80 now allows estate agents to apply for permission to do activations (this was previously prohibited). The registration information is also attached for your ease of reference.
The Outdoor Advertising By-law may be accessed on the City of Tshwane website by clicking on the Municipal Services dropdown list and then clicking on the link to Outdoor Advertising:-
https://www.tshwane.gov.za/?page_id=15501
Kind regards
Jan
