Dear Colleagues
UNDESIRABLE BUSINESS PRACTICES – PAYMENT OF FEES TO HOMEOWNERS’ ASSOCIATIONS
I shared with you the dilemma we all found ourselves in at the moment. Many HOAs are not yet complying with the regulations and agents are not allowed to trade in some estates without paying the fees thereby breaking the law and getting fined.
Undoubtedly, our current circumstances are far from ideal. However, we are actively engaging with Homeowners Associations (HOAs) and the PPRA to achieve a better result.
Although progress is slow, we’ve seen some positive developments.
Zimbali Estate in KwaZulu-Natal has stopped the practice and will now recover unquantified costs from the purchaser. No estate agents are denied access.
Featherbrook Estate in Gauteng will offer two options; one with all the” bells and whistles” – easy access, marketing opportunities etc. at a fee but there is also a free option which is what the regulation is all about.
This is real progress.
This particular version is the most appropriate because, if agents do see value in all the extras, they would of course be paying the fee without any reservation. If not, the free option is available and nobody is excluded from trading in the estate.
Because of the untenable situation, I have also approached our attorneys to obtain a proper legal opinion as to the legality of the HOAs charging these fees in the first place. The argument, amongst other things, is made that it should be illegal for one entity to “force” another to break the law in order to trade.
Some colleagues are paying fees in contravention of the regulation and facing the consequences. This enables trading at a price, but would not be a strategy at all when cancellation of FFCs becomes a reality.
Rest assured, we’re diligently working to address these issues and will keep you informed as developments unfold.
The recording of the recently held webinar on this matter is available on Rebosa’s website by accessing the link below:-
https://www.rebosa.co.za/accreditation-fees-webinar-february-2024/
FIC: SUBMISSION OF THE RISK AND COMPLIANCE RETURN IN TERMS OF DIRECTIVES 6/7
RCR submissions are still open, and this is AN URGENT CALL FOR SUBMISSION.
SA’s removal from the Financial Act Task Force (FATF) grey list is dependent on accurate submissions of the RCRs from the real estate industry.
The obligation to submit the RCRs applies to all affected accountable institutions, including estate agents, mentioned in Directive 6, which were registered with the FIC, or which ought to have registered with the FIC on 31 March 2023, being the date of issue of Directive 6. This applies to all branches of head offices that have been issued with a FIC organisation identity (Org ID) number.
The FIC has also found that some entities in the sector have relied on their head office to file their RCRs. The FIC advises that each head office and each of their branches, franchises and/or independent agencies, which has been issued with a FIC goAML Org ID (organisation identity) number, is required to complete their own risk and return.
At this stage, all entities in the estate agent sector who have failed to submit their outstanding RCRs, are non-compliant and deemed as high-risk, and may expect to receive an administrative sanction notice from the FIC.
A FIC letter to all estate agents, presentation and easy guidelines on how to submit the Risk Compliance Return (RCR) can all be found on Rebosa’s website by accessing the link below. PCC 56, explains the current scope of Item 3 of Schedule 1 to the FIC Act.
To confirm if FIC has received your RCR, log an online query using the link below. All fields must be completed.
https://www.fic.gov.za/compliance-queries/
For any queries please call the FIC’s compliance contact centre on 012 641 6000 or visit compliance@fic.gov.za and for further information, visit www.fic.gov.za.
The recording and supporting documentation from Rebosa’s FIC Compliance webinar hosted by STBB can be accessed on the link below:-
https://www.rebosa.co.za/stbb-rebosa-fic-compliance-webinar/
EMPLOYMENT EQUITY ACT
The Property Sector Charter Council recently hosted a webinar on the Employment Equity Act draft regulations and the proposed sectoral numerical targets. Below is the link to the recording from the PSCC webinar and the supporting presentation. The speaker is Mr Masilo Lefika – Deputy Director: Employment Equity at the Dept of Labour.
Rebosa will be providing commentary to Parliament on the proposed numerical targets.
https://youtu.be/AhFYkU7Jymk?si=EHSoqdqHYKJpUC9Y
pscc-_-dept-labour_ee-amendments-presentation-real-estate-property-sector-21-febraury-2024
BEE CERTIFICATES
Principal property practitioners are reminded that, in terms of section 50(a)(x) of the PP Act, the PPRA may not issue a fidelity fund certificate to any person who is not in possession of a valid BEE certificate.
Existing principal property practitioners are, therefore, advised that it is essential that they have been issued with, and are in possession of, a valid BEE certificate prior to the renewal date of any FFC.
You will only need this BEE certificate when you apply for your next 3-year FFC.
Companies with an annual turnover of less than R2,5m need only complete a sworn affidavit:- B-BBEE Exempted Micro Enterprise – Property Sector.
EXTENSION OF TAX ALLOWANCE PROVIDED FOR LEARNERSHIP AGREEMENTS UNDER SECTION 12H
Minister Enoch Godongwana: 2024 Budget Speech on 21 February 2024 refers.
The tax allowance provided for learnership agreements under section 12H is extended to 31 March 2027.
The following is therefore extended from 1 April 2024 to 31 March 2027 and applies to learnerships entered into after 1 October 2016.
The allowance depends on the NQF (National Qualification Framework) level of the learnership. For NQF Level 1-6, the employer can claim a tax allowance of R40,000 (R60,000 for disability) per year and NQF Level 7-10, It can claim a tax allowance of R20,000 (R50,000 for disability) per year.
The employer can claim a R40,000 “completion allowance” for NQF Level 1-6 (R60,000 for disability) and R20,000 for NQF Level 7-10 (R50,000 for disability).
If the Learnership exceeds 24 months, then the completion allowance is multiplied by the number of consecutive 12-month periods within the duration of that learnership.
Kind regards
Jan
