Welcome to our March report.
We would like to bring your attention to the Government Notice in respect of late payment of levies and contributions which is attached to this report and urge you not to miss the deadline.
Again, I would like to take this opportunity to thank you for your ongoing support as we navigate our way through these challenging times.
The Role of REBOSA, IEASA and the EAAB
It has come to our attention; through the many emails we receive requesting assistance, that there is some confusion as to REBOSA’s role in relation to the EAAB. It is our intention to support members with their queries, assist in fast tracking the issuing of FFC’s etc. but we can only act as a resource. We have no jurisdiction over the EAAB, their employees or computer systems. Whilst we have access to the correct people in the respective departments, we can only flag your queries with them in the hopes that they will timeously act on them.
This being said, you are welcome to continue to contact us, but please do not hold us responsible if despite all our efforts you don’t receive responses timeously or to your satisfaction. We continually seek to strengthen our relationship with the EAAB in order to deliver results but that is all we can do.
Looks after the interests of Real Estate Business Owners/Principals (Employers)
IEASA Looks after the interests of Estate Agents (Employees)
The need for two bodies is in alignment with the expectation of Services SETA, the EAAB and the Department of Human Settlements. This separation also applies to other industries/professions.
In terms of the Estate Agency Affairs Act 112 of 1976 (‘the Act”), The EAAB is mandated to regulate and control certain activities of estate agents in the public interest.
We trust this will clarify each organisations roles and responsibilities.
Continuing Professional Development
During the past weeks, we have been inundated with emails from members experiencing difficulties when registering for CPD to meet the 31 March, 2015 deadline.
We conveyed our concerns in this regard to the EAAB on several occasions, right up to and including 27 March. The EAAB has now announced that they are aware of the problems and have requested that agents who missed the deadline continue to register regardless – see note below.
None of the issues in respect of CPD have been addressed to our satisfaction and we are still receiving advice on the matter. REBOSA will most certainly not accept the status quo.
As members, we will keep you fully informed of our progress just as soon as there is more information to share.
As we have stated before, CPD is not a once-off event, it is an on-going process and we are definitely taking the matter further.
In the interim, we advise our members to register. The EAAB has indicated that failure to register could result in forfeiture of your FFC. Of course this is not acceptable, and we are not hereby confirming that such a practice would be legal; we are only informing you of the current directive from the EAAB.
EAAB Notification on CPD
“The EAAB is mindful of the many problems that are currently being experienced by estate agents in registering for the first CPD cycle. They also realise that it does take people time to adapt to new innovations and the EAAB does certainly not wish to prejudice estate agents as they go about completing the CPD registration process. The EAAB, furthermore, does not wish to place estate agents in a position where they are not able, despite their best endeavours, to comply with their CPD obligations.
They urge those estate agents who have not yet done so to continue to register online for CPD purposes as soon as they reasonably can. Their CPD registrations will not be rejected by the EAAB IT system merely because they were not able to meet the 31 March 2015 deadline.”
Property Practitioners Bill
An article in the Property Practitioners Bill reads “The property sector Transformation Charter contemplated in Section 9(1) of the broad-base Black Economic Empowerment Act, 2003 (Act 53 of 2003), applies to all property practitioners.”
We have addressed a number of issues in the Bill in previous reports and promised to continue doing this so as to keep you informed. The above clause is a case in point.
Aside from what the clause implies, it has become abundantly clear in many meetings with stakeholders that it is the intention of the Government to make the Property Charter legally enforceable.
We believe that there is general consensus that transformation is overdue and necessary. It is however obvious that the targets set in terms of the Property Charter are relatively difficult to achieve. Should the issue of FFC’s be made conditional on a BEE rating, it would make the real estate industry the exception to the rule.
This could have serious consequences for the real estate industry and we will definitely be commenting on this once the Bill is made available for comment. While pressure is mounting to promote transformation, it is unfortunately true that Services SETA and the EAAB are not exactly making it easier for new entrants to join the industry (most of whom are black). The following comes to mind; the ever increasing compliance issues (audit reports on business accounts, etc.), prohibitive costs and also the 1 Learner-1 Estate Agency Programme that was announced in 2013 and the funding for which has still not been made available.
Property Practitioner Designations
There has been some confusion in the industry as to which designations vis-à-vis PPRE, MPRE, CPRE etc. Estate Agents can use behind their names.
Mr Clive Ashpol, Education and Training Department – EAAB, has cleared this up.
The following designations may be used by qualifying estate agents, namely:
- Non-principal estate agents who have passed the Professional Designation Examination for non-principals (PDE 4) may use the designation ‘PPRE’ (Professional Practitioner in Real Estate) but only for so long as they have been issued with a valid fidelity fund certificate by the EAAB.
- Principal estate agents who have passed the Professional Designation Examination for principals (PDE 5) may use the designation ‘MPRE’ (Master Practitioner in Real Estate) but only for so long as they have been issued with a valid fidelity fund certificate by the EAAB.
- As the higher designation supersedes the lower one a person who has passed both the PDE 4 and the PDE 5 will only use the designation MPRE.
It is noted that many persons simply write ‘NQF 4’ or ‘NQF 5’ after their names. This is meaningless as NQF 4 and 5 merely reflects the level of a qualification on the National Qualifications Framework.
The correct designations are as follows:
- persons who have passed the NQF Level 4 real estate qualification [Further Education and Training Certificate: Real Estate] should use the designation ‘FETC: Real Estate’; while
- persons who have passed the NQF Level 5 real estate qualification [National Certificate: Real Estate] should use the designation ‘Nat. Cert: Real Estate’.
Government Notice: Late payment of Levies and Contributions
The Minister of Human Settlements, Mrs Lindiwe Sisulu, in a notice attached hereto, has prescribed the penalties for late payments of levies and contributions.
The penalties are onerous at R450-00 per month for late payment of Levies and R240-00 per month for late payment of Fidelity Fund Certificates.
We would particularly like to draw your attention to clause 4.1 of the attached Government Notice whereby an estate agent who ceases to operate or will cease to operate within the 2016 calendar year, must give notice to the EAAB, in writing, by no later than 31 October, 2015 failing which you could be penalised for the entire period. We strongly suggest that you don’t wait for the deadline and register from June onwards, so as to avoid creating bottlenecks at the EAAB.
Goverment Notice – Late Payments of Levies
2016 Levies and Payments
Every estate agent, excluding an ‘estate agent’ referred to in paragraph (cA) of the definition of ‘estate agent’ in section 1 of the Act, shall –
(a) for the calendar year 2016, and annually thereafter, pay to the Board a levy of:-
(i) R1,200.00 if he/she is a principal estate agent;’
(ii) R1,200.00 if it is a company or close corporation operating as estate agency;
(iii) R510,00 if he/she is a non-principal estate agent;
(iv) R364.80 if he/she is an is an intern estate agent;
(b) for the calendar year 2016, and any subsequent year in respect of which he/she applies for the issue to him/her of a fidelity fund certificate, pay to the Estate Agents Fidelity Fund (“the Fund”) a contribution of :-
(i) R580,00 if he/she is a principal estate agent; R580,00 if it is a company or close corporation operating as estate agency;
(iii) R230,00 if he/she is a non-principal estate agent;
(iv) R165.00 if he/she is an intern estate agent;
provided that no such contribution will be payable if the estate agent concerned can show that a valid fidelity fund certificate was issued to him/her in respect of any one of the immediately preceding three calendar years.
3. An estate agent referred to in paragraph (cA) of the definition of ‘estate agent’ in section 1 of the Act shall pay annually to the Board a levy of:
(a) R 510,00 for the principal members;
(b) R 295,00 for non-principal members; for the registration certificate.
Over the past 6 weeks, we continued traveling around the country holding our interactive sessions with both members and non-members. These roadshows have created a useful forum for us to debate issues and share our concerns. I would like to thank our members who attended the Margate, Durban and Pietermaritzburg and George meetings.
I would also like to thank the Property Listing Network, MLS and RNS for inviting me to share their forums over the past month.
If at any time you are hosting a sizeable meeting of industry Principals and wish me to make an address, please contact email@example.com and if my diary permits, I would welcome the opportunity.
Considering what you have all just gone through apropos the implementation of the CPD Programme, I’m sure you can attest to the fact that the need for a body like REBOSA has never been more crucial. If REBOSA had been established when the CPD Programme was first tabled, we would have had the opportunity to respond appropriately at the outset.
The Property Practitioners Bill will have far reaching effects on the industry and is imminent. Only collectively and with weight of numbers can we effect change and protect our real estate practitioners. I urge you to recruit new members so that by the time the Bill is made available for comment, we are representative of the entire industry. A mere R20.00 per agents/interns and principals per agency per month, we believe is a small price to pay for insuring your interests are protected as far as possible.
EAAB CPD Information Session Workshop
One of our members attended the CPD Information Session workshop on 27 March, and kindly provided us with this feedback which we include for your perusal.
“Dear Jan Thank you for your regular and detailed information. It makes us proud to be part of a body that not keep us informed, but has a voice to fight our causes and ensure best practices are implemented to the benefit of all in the Industry – it is long overdue.
Having said that and realising it is early days, the past roadshow which we have attended with our agents on the CPD information session workshop, was a total waste of time and money. A quick calculation, these roadshows nationally must have cost around R250 000. Our hard earned money paid over to ensure we are trained in our profession. Below in blue are the total sum of my notes that I took over the 2 and half hour cession – nothing more than what we have already received on email.
Going forward, it is imperative that proper trainers in each field are appointed, the slides and material approved – to make sure it is relevant, recent and the trainers leaders and knowledgeable in their fields and good speakers. We cannot afford to have people ‘waffling’ to make up time. To add a WOW to the roadshows, and motivate the large number of agents attending, consideration should be given to end each cession with a motivational speaker i.e. Gavin Sharples.
Friday’s roadshow was an absolute waste of time, adding no value and after 2 and half hours we left frustrated and disappointed. If the standard of the speaker is anything to go by, I honestly fear the worst – it was below par and definitely does not give the EAAB more credibility in the estranged relationship we already have with the board. After the cession I discussed the workshop with other principals from other franchise groups and they shared the same sentiments.
I trust the above will be addressed at an opportune time.
CPD Compliance (Presented by Margie Campbell 27 March 2015)
60 Points over 3 year rolling cycle
45 verifiable + 15 non-verifiable over the 3 year cycle
15 verifiable + 5 non-verifiable CPD over 1 year
The cycle started 1 Jan 2015, we are now in year 1
Who are on the cycle:
Need a valid 2015 certificate
Title on Fidelity Fund Certificate – fully qualified & principals
Swipe cards make allocation of points automated. You have to swipe in and swipe out. Points are allocated immediately
Interns are NOT on the program as yet
EAAB Annual Roadshow
Only principals will be getting points to attend roadshow (3 points)
Everyone can attend, however there are limited seats for interns. It will always be 1st come 1st serve
Personal Development Plan
PDP registration will close 31 March 2015
3 CPD points will be allocated for all EAAB presentations/workshops/roadshows. You can attend max of 5 events in a year; this will give you 15 points for the year
You have to go on the calendar and book your seats
Calendar will be available in next week
Pre-book your seats
Verifiable = Education and Training. The EAAB is the only Professional Body that can present training in this category and allocate points.
Non-Verifiable= other training
Fees are paid annually, with 2 options”