Annual General Meeting
Rebosa held its 9th AGM on 12 August 2022. Please see below our Chairman Mr Tony Clarke’s report on the year in review.
We are pleased to welcome Mr Adrian Goslett to the Rebosa board. Adrian is the current Regional Owner, Regional Director and CEO of RE/MAX of Southern Africa. Adrian brings a wealth of experience and expertise to the board and we wish him every success going forward.
Membership Fee Increase
For the past nine years Rebosa’s membership fees have remained unchanged. Despite sound financial planning and prudent spending, it has now become necessary to increase our membership fees to R25 ex VAT per FFC holder per office wef 1 January 2023.
There has been some confusion around the B-BBEE Certificates required by the PPRA for FFC applications and renewals in terms of the PP Act and Regulations.
Many agents have been concerned that they have to pay a verification agency for a BEE certificate if their turnover is more than R2,5m when they can obtain a free certificate from the CIPC website.
The Property Sector however, does not fall within the generic codes and the threshold iro the Property Sector Amended Codes is R2,5m. Therefore, all firms with a turnover exceeding R2,5 must obtain a BEE certificate from a registered SANAS verification agency with property sector scope. See Amended Property Sector Codes below: –
Please see an article recently published in the Property Professional which explains the difference and which provides further clarity.
Historical Penalties Imposed by the PPRA
Many agents wishing to return to the industry are faced with heavy penalties which need to be paid before they can re-register and obtain a valid FFC. This is because they did not deregister from the PPRA (previous EAAB) when they left the industry.
A legal opinion obtained by Rebosa asserts that any such penalty imposed by the PPRA is simply unlawful.
This opinion was communicated to the EAAB (now PPRA) on 2 July 2020 and despite many engagements in this regard no definitive response has been received.
While we have no short-term solution, we do intend to take the matter further and are currently consulting with our legal team.
Interest on Trust Accounts
The payment of interest on trust accounts remains problematic. The clause that empowered the PPRA to demand interest in the old Act has not been included in the new PP Act, although there is mention of interest in the new Regulations.
Our legal advice indicates that the regulations obviously cannot alter the Act. Our position therefore remains that no interest is payable to the PPRA. Unfortunately, they have the opposite view and is demanding 100% of the interest.
We have proposed that the practice that worked so well for many years be reinstated where 50% of the interest is paid to PPRA and the 50% balance is retained by the firm.
We are reasonably confident that we will reach an agreement soon but until then you will have to decide on which course of action to take.
Refuse to pay citing an uncertain legal situation, or
Pay 50% or 100% under duress explaining you want a full refund depending on the outcome of the legal situation.
We cannot give any more definitive advice at this time.
Delays in Issuing FFC Renewals
The renewal period for applicants wishing to renew their 2023 FFC opened on the 1st of July 2022.
However, due to the constant load shedding and IT issues relating to SAP enhancement which is currently underway the PPRA is experiencing delays in processing renewal applications and issuing FFC’s for 2023.
Applicants who have submitted renewal applications to the PPRA may experience a delay of eight weeks in receiving their 2023 FFCs. The PPRA recommends applicants who have not received their renewal FFCs wait until the 5th of December 2022 before contacting PPRA about their renewal application.
The PPRA is working hard to try and minimise the delays and is confident that by the 5th of December 2022 all renewal applications submitted will be issued subject to the 30 days turnaround time for applications submitted after the 5th of December 2022.
All applicants who have not renewed their FFC are advised to submit their applications to email@example.com.
It is important to understand that due to the change in legislation all renewal FFCs issued are valid from the 1st of January 2023 to the 31st of December 2025.
Status on Qualification Standards
The debate regarding qualification standards for the industry iro PP Act continues and the NPPC is progressing with discussions with the PPRA in this regard.
Examination Results for PDE Written on 23 June 2022
Results for the PDE exam were supposed to be released on 31 August. The PPRA have issued a communique stating that the release of results will be delayed. No timeframe for the release of the results has been forthcoming.
Rebosa Mourns Loss of Industry Champion Mr Bruce Swain
REBOSA joins the industry in mourning the loss of Mr Bruce Swain whose life was characterised by his devotion and service to the residential real estate industry.
Bruce until the recent AGM served on the Rebosa Board and was highly regarded in the real estate industry, where he played a central role for many years. His untimely passing is a major loss for our community.
On behalf of the Rebosa Board of Directors we extend our heartfelt condolences to his family, friends and colleagues at the Leapfrog Property Group.
We can all speak of his warmth, energy, practicality and sense of humour for which he was so well known and loved. He had the uncanny ability to reach people in a deep and positive way and he has been a great role model to many.
While Bruce will be greatly missed, he has left behind a powerful legacy of humility and dedication which will live on for many years to come.