As we enter the final months of 2015 we are also edging towards important deadlines in our industry. Please be mindful of the FFC renewal deadline at the end of October and also booking deadlines for the last PDE examinations that will be held in November this year.
Whilst we don’t have any concrete information to give you in terms of progress made in respect of the CPD programme, we can say that we have had another Multi-Stakeholder Group meeting with the EAAB and hope to be in a position to provide you with some positive feedback in our next report.
We would like to reiterate that while progress has been slow, we have been extremely busy behind the scenes trying to effect change that will be for the betterment of the industry. There have been many meetings and many hurdles to cross notwithstanding the legislative framework we have had to work within but we remain confident that we will see some positive outcomes.
This being said, we are pleased to report that we have managed to strengthen our relationship with SSETA and many long outstanding NQF4/5 certificates have been issued in the past few weeks.
Again, thank you for your ongoing support and your contribution to the industry.
Department of Trade and Industry: Codes of Good Practice on Broad Based Black Economic Empowerment
The amended Property B-BBEE Sector Codes for public comment have been issued by the Department of Trade and Industry.
Read the “Notice” here Property Sector Code signed
The Property Sector Code will be published soon for comment and we will keep you informed of the developments as they progress.
Fidelity Fund Certificate Renewal Deadline
Fidelity Fund Certificates must be renewed by 31 October 2015.
With the deadline looming this will obviously cause a bottleneck in the EAAB system therefore early submission will facilitate better responses. We urge you to renew your FFC as a matter of extreme urgency.
You are further advised to ensure that detail of the estate agency and that of the agent on your MyEAAB Agents Portal on the EAAB website is correct. Should you find any errors please advise the EAAB accordingly as discrepancies may delay the issuing of FFC’s. Should a response not be forthcoming during November, please contact the EAAB by email and copy us so that we can assist in the follow up process.
It is of the utmost importance that you renew your FFC’s, submit audit reports etc. electronically as better results and quicker responses are achieved by doing so.
Proof of renewal payments should be sent to email@example.com
Compliance with Educational Requirements
Please also note in respect of Compliance with Educational Requirements by Estate Agents who were Registered with the EAAB On 15 July 2008, that:-
Currently practicing principal and non-principal estate agents who were registered as such on 15 July 2008 but who have not yet complied with the prescribed educational requirements may not be issued with a fidelity fund certificate for the 2016 calendar year unless they:
• provide written proof to the EAAB confirming that they are currently registered with a Services SETA-accredited real estate prior learning assessment centre or real estate training provider, as the case may be, for accreditation against the required NQF real estate qualification; and
• where such a document has been issued, also furnish a copy of the preliminary competency finding by that Services SETA-accredited real estate prior learning assessment centre or real estate training provider, as the case may be, pending the verification of that competency finding by the Services SETA.
The required proof of registration by the estate agent concerned with a Services SETA-accredited real estate prior learning assessment centre or real estate training provider, as the case may be, must be received by the EAAB by no later than 30 October 2015, being the last date for the renewal of fidelity fund certificates for the 2016 calendar year.
Receipt by the EAAB of such proof will enable the estate agent concerned to be issued with a fidelity fund certificate for the 2016 calendar year. Once the initial competency finding against the NQF real estate qualification has been duly verified by the Services SETA, the estate agent concerned will be required immediately to advise the EAAB accordingly and to enrol for, and pass, the next scheduled Professional Designation Examination.
Practicing principal and non-principal estate agents who were registered as such on 15 July 2008 and who have yet to comply with the peremptory educational requirements are, therefore, requested to e-mail the necessary written proof of registration with a Services SETA-accredited real estate prior learning assessment centre or real estate training provider, as the case may be, to the EAAB as soon as possible.
Such written proof should be e-mailed to firstname.lastname@example.org and must, in any event, be received by the EAAB by no later than 30 October 2015.
Failure to do so will result in the disqualification of that estate agent meaning that it will not be possible for the EAAB to issue a fidelity fund certificate to that person for the 2016 calendar year.
Professional Designation Examination (PDE 4 AND 5)
This serves as a reminder that the next PDE Exams are set for 12 November 2015.
You can find more information including exam venues on our website.
The grant of an Equivalency Exemption against the NQF Level 4 and 5 Real Estate Qualifications
Following many queries regarding exemption from NQF 4 and 5 and PDE 4 and 5, Clive Ashpol of the EAAB has sent us the following communication, outlining the process which we hope will provide you with some clarity.
From: Clive Ashpol [mailto:email@example.com] Sent: 06 October 2015 12:43 PM
Subject: Equivalency Exemption against NQF 4 and 5
The grant of an equivalency exemption against the NQF Level 4 and 5 real estate qualifications.
Provision is made for persons holding a relevant tertiary qualification that aligns with the curriculum of the NQF Level 4 and/or 5 real estate qualifications respectively, and also complies with the requirements of the equivalency exemption matrices, a copy of which is attached for ease of reference, to apply to the EAAB for the grant of an equivalency exemption application against those qualifications.
The following documents are required to found such an equivalency exemption application, namely:
• a letter addressed by the applicant to the EAAB formally requesting the grant of the equivalency exemption;
• a copy of the applicant’s identity document;
• a short curriculum vitae;
• a copy of relevant degree/diploma certificates;
• a copy of the academic history (or statement of courses passed) in respect of those tertiary qualifications; and
• proof of payment of the assessment fee, as per the annexed attachment.
Exemptions against the Professional Designation Examination (PDE)
There are two possible ways in which an exemption might be granted against the PDE, namely:
The statutory PDE exemption
In accordance with the provisions of the Standard of Training of Estate Agents Regulations, 2008, any estate agent who continuously held a valid fidelity fund certificate between the period 2003 to 2008 inclusive may be granted an exemption against the PDE. The nature of the exemption to be granted will depend on the status of the applicant. If, thus, the applicant held a valid fidelity fund certificate as a non-principal estate agent during the relevant period that person will be granted an exemption against the Professional Designation Examination for non-principal estate agents (PDE 4). If, however, the applicant held a valid fidelity fund certificate as a principal estate agent between 2003 and 2008 that person will be granted an exemption against the Professional Designation Examination for principal estate agents (PDE 5).
The age-based educational exemption
Estate agents are eligible to apply for an exemption against both the relevant NQF real estate qualification as well as the PDE, against payment of the prescribed application fee, provided that they:
• are aged 60 years or older;
• have held a valid fidelity fund certificate for a period of at least five years;
• currently hold a valid fidelity fund certificate; and
• have no infractions registered against their names at the EAAB.
It will be found that in practice most of the persons who apply for the grant of an equivalency exemption against the NQF real estate qualifications do not fulfil the criteria for the grant of a PDE exemption. Such persons are, therefore, required to write the PDE.
I do hope that this clarifies the position.
Clive Ashpol HonsBA, MBL, LLB, LLM
Education and Training Department
ESTATE AGENCY AFFAIRS BOARD
The New Auditors’ Report
Attached for your perusal is an article from South African Institute of Chartered Accountants (SAICA) on the so-called new and revised auditor reporting standards, are affective for audits of financial statements for periods ending on or after 15 December 2016; in essence, 31 December 2016 financial year-ends.
We have sought advice from our Auditors who have confirmed that these changes will not have a direct bearing on Estate Agents as the format of the EAAB financial report is still governed by the EAAB regulations.
In the future however, the auditor may comment on the “business” as a going-concern and this could affect business owners.
• Enhanced reporting on going concern:
The auditor’s report will provide a description of management’s responsibilities in terms of assessing the entity’s ability to continue as a going concern and the auditor’s responsibilities pertaining to management’s use of the going concern basis of accounting.
If the auditor concludes that a material uncertainty exists, this is to be reported in a separate section of the auditor’s report called “Material Uncertainty Related to Going Concern”.
One Learner – One Estate Agency Youth Brigade Programme
To our members who are participating in the One Learner-One Estate Agency Youth Brigade Programme. See below an important email from the EAAB in respect of stipends and other issues.
ABSA Extending Early Notice Period to 180 Days
ABSA Home Loans have recently extended the Early Termination Notice Period from 90 days to 180 days. The notice is attached for your perusal.
We received emails from Members concerned that this may be against the CPA. We asked ABSA to provide us with some clarity and following is the response:-
“Absa extended the notice period to 180 days due to delays experienced in the registration process. Just in JHB deeds office alone there is almost a 4 week delay. Further delays in clearance certificates, purchasers amending certain conditions on home loan and seller extending occupation dates etc. has also extend the registration process. The 180 days is merely to allow for sufficient time to cover cancellation issues and to ensure that the client does not have to provide a second notice period to extend in cases where these issues might arise. The communication clearly states that there is no change to the early termination penalty being charged i.e. The early termination fee will still align to 90 days interest on the account. It simply means that the notice of termination will be valid for 180 days. If notice is given on 1 September instead of a hold being placed on the account for 90 days to end November 2015 it will show as end of Feb 2015.”
We hope this creates the context for the “Notice” and provides clarity.
SSETA: Discretionary Grant Application Extension Notice
The Services Sector Education and Training Authority (Services SETA) is inviting suitable employers, stakeholders and interested parties to apply for discretionary grant funding. These grants are intended to meet the sector needs as set out in the Sector Skills Plan (SSP), Strategic Plan and the priorities outlined in the National Skills Development Strategy III (NSDSIII).
The allocation of funds is intended for programmes and projects that improve the supply of qualified and competent people for scarce and critical skills. Furthermore, it is also intended for programmes that include practical and theoretical components that are meaningful for the development of the individual and achieve substantial progress towards a qualification.
Finally, the allocation of funds is intended to provide external mentoring support and training for business owners and learners.
To view the full advertisement, application process and application forms you can visit the website on the link provided below:-
Applications close on 13 October 2015 at 12:00 a.m. (midnight)
Promotion of Access to Information Act, 2000 (ACT NO.2 OF 2000) (PAIA)
During 2000 the government passed the Promotion of Access to Information Act (known as the PAIA Act). The aim of this Act is to allow members of the public to know who they are dealing with in a business.
According to the Act, all public and private bodies must have a PAIA Manual (also known as a Section 51 Manual).
NO BUSINESS IS EXEMPTED FROM COMPLYING WITH THE ACT.
Extensions for some businesses have been granted until December 2015 to submit their manuals to the SAHRC. Even if you qualify for an extension on the submission date, you still need to have a valid PAIA Manual available on request. This means all businesses need to have one.
For further information on PAIA and how to prepare a PAIA manual visit the link below.
National Association of Realtors (NAR)
As REBOSA is an international affiliate of NAR, on 7 September, we once again enjoyed the opportunity of spending time with Ms Nancy Macaluso, NAR’s Liaison to South Africa to share insights, market trends and international opportunities.
From 13-16 November 2015, NAR are hosting their annual international conference and expo at the San Diego Convention Centre in San Diego, California.
There are still packages available if you are interested in attending. You can also visit their website, http://www.realtor.org for full details and a brochure on the convention.