Sunday, November 27, 2011

Transfer duty - the basics

R 600 000.00 = Zero % Transfer Duty.

From R 600 001.00 to 1 million = 3% Transfer Duty.

Above R 1 000 001.00 to R 1 500 00 = R 12 000 + 5% Transfer Duty.

R 1 500 001 and Above = R 37 000 + 8 %

Wednesday, November 9, 2011

Becoming an Estate Agent in SA

Becoming an Estate Agent can be achieved in many ways.



One way is to find an Agency that will enter into an agreement with you on a full or part time basis. You then register with the Estate Agency Affairs Board as a Candidate Agent. You can now act as an agent under the guidance of a principal.



There are then a few routes from there - but the best is that you register on a Learnership and get signed off as being competent on the various Unit Standards of the required NQF 4 Qualification for Estate Agents. After this you also need to do the professional designation examination with the EAAB.



For any other support or guidance you may want to contact the Institute of Estate Agents of SA at admin@ieasajhbmetro.co.za



You can aslo visit my blogsite http://realestategoingson.blogspot.com/ for developments, and of course the IEASA and EAAB sites.



Good luck.



Charl Heydenrych

proplib@tiscali.co.za

Monday, September 26, 2011

Dr Andrew Golding talks on Rebosa and other developments.

UPDATE ON IEASA AND REBOSA

The importance of further professionalisation of the industry continues to be high on the

property list of real estate industry focussed organisations, particularly in the light of recent

adverse publicity. Furthermore, it remains an important priority for the industry in general to

organise itself in properly organised and representative groups in order to successfully lobby

and influence decision makers and law makers about any current or future regulatory

amendments or changes.

To this end, as has been previously communicated and in line with NEDLAC

recommendations, in order to properly represent the residential real estate industry at the

highest levels of government and other decision making entities, a decision was taken to

create two separate entities within the real estate profession, one representing business

owners and principals, called REBOSA (Real Estate Business Owners of South Africa) and

a second organisation representing the interests of "labour" (estate agents and employees).

Significant progress has been made in this regard, firstly in respect of REBOSA. Off the

back of a nationwide series of road shows where significant support was garnered, the name

has now been registered and is awaiting registration at CIPC (Companies & Intellectual

Property Commission). Furthermore, a draft code of conduct and a constitution have been

compiled and are currently under review by the interim national steering committee.

As far as the other organisation representing labour is concerned, a decision was taken at a

special board meeting of the national Institute of Estate Agents of South Africa (IEASA) to

evolve and transform itself into a new association to be called the Property Practitioners of

South Africa (PPSA^and represent the interests of estate agents and employees ie. labour.

It is furthermore the intention of both REBOSA and PPSA to be fully inclusive and as far as

possible represent the interests of the full range of all constituents in the residential property

industry in South Africa.

Furthermore, and to complete the organisational picture, and given the many common points

of interest relating to both labour and business, it is the intention of both REBOSA and PPSA

to form a joint committee comprising elected members from each organisation to address

these issues from time to time and when appropriate .

Finally, once formed and registered with the Department of Labour, both associations will

work together to form a professional body for real estate by registering with SAQA (South

African Qualification Authority) where professional designations will be housed for both

employers and employees. In this way both REBOSA and PPSA will be jointly responsible

for this aspect of the professionalisation of the real estate industry.

For further information, email Pam Snyman at pam@ieasa.org.za, or contact Dina Porteus,

co-ordinator@rebosa.co.za.

Ends

Caption: Dr Andrew Golding, national president of IEASA

Thursday, September 1, 2011

Farmland - the next battle

What is on the cards for redistribution of farm land:

"a property evaluator empowered to determine the amount of money to be paid if land is expropriated." This is one of the points made in the Green Paper, now available for comment.

The party (DA) said the country already has courts to determine land ownership rights and compensation, and that giving those powers to an extra-judicial political office opened the road to abuse.

...I couldn't agree more.

Time to stand together.

Amidst all the controversy surrounding the persons involved with the regulator, there seems to be a wider feeling that if only the Real Estate Profession could bury its narrow interests it should be able to regulate, educate, act for labour, and promote our industry. This is also the view of Tony Clarke, Managing Director of Rawson Properties. He believes that “We need to get all the stakeholders to unite eg, IEASA, SAPOA , NPF, SSETA etc. He states that and all should be represented in such an endeavour. He also feels that the majority representation should be industry operators.

He says: “Its time we get our act together, set up a professional body and apply for self regulation for our industry. If attorneys can do it, why would we not be able (to do so)?”

It is hoped that the newly formed REBOSA (Real Estate Business Owners of SA) and the restructured IEASA will play a leading role in such an effort.

Extract from the FNB House price index - Aug 2011

The August FNB House Price numbers provides what could perhaps be described as “mixed signals”. In year-on-year terms, the FNB House Price Index growth rate continues to accelerate. This reflects, with a lag, the mild resurgence in demand in the summer of 2010/11. On the other hand, while the seasonally-adjusted month-on-month growth rate continues to point to still-positive growth, it also indicates a slowing in growth momentum. This arguably reflects some weakening demand more recently during the winter months, not only as a result of seasonal factors but also due to no further interest rate cuts in 2011 as well as slowing economic growth (and likely household income growth too). Simultaneously, FNB’s valuers continue to suggest a deteriorating balance between supply and demand.

On a year-on-year basis, the FNB House Price Index rose by 6.1% in August (i.e. August compared with August a year ago). This represents an increase on the revised growth rate of 4.8% for July. In real terms, adjusted for CPI inflation, the year-on-year percentage change for July was still mildly negative to the tune of -0.5%, given that CPI inflation in July was 5.3% and the revised nominal house price growth rate for that month being 4.8%.

Wednesday, August 31, 2011

How am I doing?


If you are an Estate Agent operating in the retail residential market in South Africa, we invite you to participate in a confidential and voluntary information sharing programme.

The purose of the programme is to collect information about the market and trends within the market. The programme will not only give you information on how you are doing in relation to other agents in the market, it will also help you to set targets and track your preformance over time.

All you need to do is to submit your sales data on a monthly basis. The information is aggregated in such a way that no individual agent or agency is identifyable.

If you are interested in participating please complete this form and we will let you know what to do. If you have any queries please send an e-mail to proplib@tiscali.co.za

The saga continues.

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Tuesday, August 30, 2011

Ironic


It is ironic that this article appeared in the Star next to a LEAD SA article - "be the South Africa you want to be..." This is not the type of organisation that we wnat to be associated with the profession. Is it not time that some of the functions so inadequately managed by the EAAB be given back to the profession to manage? Surely there will be less of these unsavoury actions to contend with. Let the EAAB deal with customer complaints and the profession will do what it needs to do to deliver high quality estate agency and broking services witout being tarnished by the board's shenanigans.

Sunday, August 28, 2011

Who watches the Watchdog


Caught out once again - The EAAB just cannot get it right! This article appeared in the Sunday Times of 28/08/11.

Perhaps the officers should also write Proffessional Certification Exams, get NQF 4 certificates, be RPL'ed, be forced to pay for indemnity certificates, be subjected to anonymous whistleblowing systems and the like.

We just need less of these structures that have power over money they did not earn.

Bolani said: : "...the information about our activities has always been in the public domain" that's not the point - the point is using public money to benefit oneself! Doesn't he get it? Since when is he trying to be a motor car service technician?

Click on the photo to enlarge. (+)

Friday, August 26, 2011

Government Green paper moves SA closer to Government controlled Communism


Though foreigners get the nod on land ownership and government appears to have abandoned the notion that foreigners should not own any land in SA. it seems they are proposing that foreigners enjoy freehold title but with possible onerous conditions applied on for example coastal land and not being able to export all of what they produce on agricultural land and that land can only be owned in conjunction with local partners.

This, together with restricting freehold title for SA citizens, clearly indicate that the government is opposed to the idea of private land ownership in South Africa.

This will have a devastating impact on private initiative and wealth creation, not to mention the impact on the real estate industry in rural areas.

The green paper on land reform was approved by the Cabinet on Wednesday.

Again also, it seems as if there will be a bundle of regulations that the minister will be able to make without the kind of scrutiny that an act of parliament would go through. So again we are at the mercy of the administrators rather that the legislator.

If two imperatives for land reform were that the government has to "improve on past perspectives, without disrupting agricultural production and food security; and to avoid or minimise redistribution and restitution which do not generate sustainable livelihoods, employment and incomes", then the onerous processes involved in subdivision of land and all the regulations involved in transferring land ownership should be looked at. This is the writers view – rather than the top down approach proposed by the green paper.

It seems that the green paper will be made public next week. All are urged to help tranform the landscape of property ownership in SA, but not by giving a larger role for the Government but by strengthening individual property rights. One example are the RDP houses - the new owners to not get full title - they are for example not allowed to sell them. SA Blacks are being treated like second class citizens by their own government. This also shows the the government want more power and do not believe in individual land ownership with full rights. Is this what anti-apartheid activist really wanted - a disowned populace under an all powerful government?

(most of the factual information in this article was sourced from: http://www.businessday.co.za/articles/Content.aspx?id=151760 hartleyw@bdfm.co.za )



Tuesday, July 26, 2011

EAAB GRANTS EXTENSION FOR ESTATE AGENTS TO COMPLY WITH EDUCATION REQUIREMENTS

We knew that this was going to happen - did we not! If this was so important why would they not have taken all the actions necessary to make it happen - The answer is simple: it just is not that critical for an agent to meet those requirements. The requirements need a rethink - especially in the light of young persons wanting to enter the market. It should be made easier - not more difficult to become an Estate Agent. When I became an Estate Agent in 1993 all i had to do was to find a Principal that was prepared to take me on! It worked for me, why can it not work for the thousands of young bright unemployeds out there (as I were in 1993 - not so bright mind you!)?

IMMEDIATE RELEASE
25 July 2011
EAAB GRANTS EXTENSION FOR ESTATE AGENTS TO COMPLY WITH EDUCATION REQUIREMENTS
The Estate Agency Affairs Board (EAAB), acting in terms of the Education Regulations, has resolved to grant a two-year extension to all estate agents who were registered on 15 July 2008 and who were, thus, required to be certificated against the relevant estate agency qualifications by 31 December 2011. Such estate agents will now have until 31 December 2013 for this purpose.
“This extension is pivotal for those affected estate agents who have yet to be certificated as required by the Education Regulations,” says Thami Bolani Chairman of the EAAB. “While the new educational dispensation, which aims at professionalising estate agents, continues to receive widespread support from estate agents and consumers alike, the EAAB now believes that it was over-optimistic in anticipating that some 37 000 estate agents would be able to upgrade their qualifications in a period of only three years.”
More than 12 000 practicing estate agents have already either been certificated against the required real estate qualification or have been exempted therefrom on the basis of previous tertiary qualifications obtained from South African institutions of higher learning.
The numbers of estate agents approaching accredited education providers for training is growing all the time as the reality of the new professional estate agency environment is acknowledged. Bolani expressed his confidence that, “By granting this extension, it is likely that all estate agency practitioners who wish to remain in the real estate sector can be accommodated.”
ends/
For more information contact:
Ms Portia Mofikoe
Acting Executive: Stakeholder Relations and Education
Estate Agency Affairs Board
083 4490 883 or 083 993 6120
Tel: 011 731 5662 or Portia.mofikoe@eaab.org.za

Sunday, July 24, 2011

IEASA Board meeting 22 July 2011 - discussing the way forward.

Kate Colsell
Pat Acutt, Ivan Neethling
Johalna Minnaar, Dr Andrew Golding, Pam Snyman.


Anna Mothudi, Ronel Heyns,

(c) Charl Heydenrych

 X

If you wish to submit your organisation's details go here:

Thursday, July 7, 2011

THE AGENT magazine

Some of you may not be aware that THE AGENT magazine is downloadable from the EAAB’s website http://www.eaab.org.za/estate_agency_magazine.html – they are large files at 5mb but do contain some interesting content and back-editions are available.

Saturday, May 7, 2011

NQF 4 or NQF 5 qualification

RPL - Do your NQF 4 or NQF 5 qualification now!

A unique opportunity to make a start and complete your required NQF qualification as an agent or principal before the December 31 deadline. The Institute of Estate Agents have has arranged with iSeleSele Property Academy for IEASA members to attend a first RPL session for theses qualifications on June 10 or 11, 2011. The cost to members is R 5 500 (Excluding Vat).

Agents must attain the level 4 qualification and principals must attain the National Certificate Real Estate NQF 5, which is a management qualification with specialisation in real estate. Both can be obtained via RPL.

The training provider, iSeleSele Property Academy has been one of the fore-runners in bringing innovative products and processes to the real estate industry to comply with current regulations. All its facilitators, assessors and moderators are subject matter experts with between many years of industry experience and offer around the clock telephonic assistance to Agents and Principals alike; all living the slogan “RPL MADE EASY”.

iSeleSele Property Academy has all the required accreditations and more!

• Seta Accreditation number 2283 (see www.serviceseta.org.za)

• Estate Agency Affairs Board accreditation (see www.eaab.org.za)

• Registered with the Department of Higher Education

• ISO 9001 (International standards of quality assurance issued by SABS)


Make your booking through Marian at the IEASA office – 011 431 4107, for the above dates or to be slotted into a public programme. Send her an e-mail at admin@ieasajhbmetro.co.za or fax the attached booking form to 086 669 7451

Terms: Payment by EFT into the Iselesele bank account. (See attached enrolment form).

Contact us if you have any questions regarding the training of your staff, learnerships or claiming back your skills levies.

Marian Lodewick

IEASA Jhb Metro Region
Tel: 011-431-4107
Fax: 086-669-7451
Email: admin@ieasajhbmetro.co.za

 X

If you wish to submit your organisation's details go here:

Tuesday, May 3, 2011

April 2011 FNB House Price Index

The April 2011 FNB House Price Index showed further mild acceleration in year-on-year growth on March’s revised rate of 1.2%, to 2.2%.

This is the 2nd successive month of mild acceleration in year-on-year house price growth, an event which we believe is the lagged result of a

further brief flurry of interest rate cutting by the Reserve Bank (SARB) late in 2010. Those rate cuts caused a mild uptick in residential

demand which may have been more than just the usual summer seasonal factors.



Regards,


Ewald Kellerman
Property Market Analytics




FNB Home Loans
Ground Floor
FNB Building
1 Enterprise Road
Fairland
Tel (011) 632 0021, Fax (086) 660 6865
e-mail ekellerman@fnb.co.za propertybarometer@fnb.co.za

http://twitter.com/EwaldKellerman www.fnb.co.za www.howcanwehelpyou.co.za

Thursday, April 28, 2011

FNB Survey - End April 2011

The FNB Estate Agent Survey for the 1st quarter of 2011 points to agents’ perceptions of housing affordability, in terms of price levels relative to buyer income levels, having improved significantly.

We believe that this perception is to a large extent justified. As at the 1st quarter of 2011, it is very likely that housing affordability, as measured by the average house price/average remuneration ratio and by the instalment repayment/average remuneration ratio, continued to improve. This is due to anaemic house price growth of 0.82% year-on-year for the 1st quarter according to the FNB House Price Index, the likelihood of wage inflation being significantly stronger than house price growth, and a further decline in the average interest rate following a late-2010 interest rate cut.

However, affordability calculations are based on the wage growth of those employed, and after a major decline in formal sector jobs during the recession in 2008/9, recent employment growth remains very slow. Therefore, the household sector as a whole remains financially constrained, and despite the improvement in traditional measures of housing affordability, housing demand growth has not yet set the world alight.

Therefore, it is not surprising that, when house prices around major metros are measured on a value band basis, the affordable area segment has shown the best price growth in recent times. On a year-on-year basis, Affordable Area (average price = R377,864) average price growth measured +8.9% for the 1st quarter of 2011. Within the Affordable Segment, the Former Black Township component stands out as being the strongest, which may also reflect a lack of supply of stock relative to former suburban areas. The other 3 area value bands were grouped in a very narrow range of price growth, with Top End Areas (average price = R1.882m) showing +5.2% growth, Middle Income Areas (average price = R712,764) showing +4.6% increase, and High Income Areas (average price = R1.086m) rising by +3.8%.

The household sector’s financial constraints continue to keep it focused on basics, and this can be seen in coastal holiday town price estimates continuing to show significant deflation to the tune of -6.9% year-on-year.

However, despite some difference in the relative performances of segments, virtually all housing segments that we measure have shown further de-celeration in price growth during the 1st quarter.

The exception was the “Sectional Title Less than 2 Bedroom” segment. Whereas, the Sectional Title 3 Bedroom sub-segment recorded a meagre +0.3% year-on-year price growth in the 1st quarter, and the 2 Bedroom sub-segment +0.4%, the “Sectional Title Less than 2 Bedroom” sub-segment sub-segment showed a significantly better +6.6% growth, and was the only major segment in both the full title and sectional title markets to see its growth accelerate, from the previous quarter’s +4.8%. One must bear in mind that the Less than 2 Bedroom sub-segment tends to be more cyclical than the others, and that it also saw the biggest price dip during 2008/9 of the key sectional title sub-segments, so its prices come off a lower base. This segment is believed to be a major target of 1st time buyers in the former white suburban areas, a source of demand that is more cyclical than overall residential demand. Its reliance on 1st time buyers may be starting to benefit it at present, because our FNB Estate Agent Survey shows an increase in 1st time buyers as a percentage of total buyers from 17% in the 4th quarter of 2010 to 22% in the 1st quarter of 2011.

John Loos
Strategist

FNB Home Loans
Ground Floor, fairland Campus, Enterprise Road, Fairland, Johannesburg
Tel (011) 6490125, Fax (086) 5140478
e-mail: john.loos@fnb.co.za

Tuesday, April 19, 2011

The noose is tightening...

IMMEDIATE RELEASE
07 APRIL 2011
MEDIA RELEASE – ESTATE AGENCY AFFAIRS BOARD ANNOUNCES GRANT OF AMNESTY PERIOD FOR ILLEGAL OPERATORS
The Estate Agency Affairs Board is pleased to announce that it has resolved to grant a three-month amnesty period to illegally operating estate agency practitioners. It is to be hoped that this innovative step will assist all persons who are presently operating illegally as estate agents to regularise their status. The EAAB firmly believes that the grant of amnesty will not only promote a positive climate of transparency and reconciliation between itself, illegal estate agency practitioners and consumers but also encourage offenders, who might otherwise be reluctant to do so, to come forward and legalise their activities as estate agents. It is to be underscored, in this regard, that all practicing estate agents are obliged by the provisions of the Estate Agency Affairs Act to apply to the EAAB for, and be issued with, valid fidelity fund certificates before engaging in any estate agency functions and activities.
The three-month amnesty period for this purpose commences on Friday, 15 April 2011 and terminates on Friday, 15 July 2011. Persons who wish to utilise the opportunity to apply for amnesty will be requested to submit an affidavit to the EAAB in which full and honest disclosure is made of all estate agency activities that were undertaken when the applicants were not authorised to perform the functions and activities of an estate agent. Amnesty applications will be comprehensively considered and evaluated by a special committee of the EAAB which will comprise at least three, but not more than five, members. The committee may also include independent advisers and/or consultants.
The following criteria will, amongst others, be taken into account by the committee when deciding whether or not to grant amnesty applications, namely, the apparent motive of the applicant in bringing the application; the context in which the admitted contravention of the provisions of the Estate Agency Affairs Act took place; the legal and factual nature of the contraventions of the Estate Agency Affairs Act committed by the applicant; the interests of both the public as well as the general body of estate agents; and justice to the applicant as a fit and proper person.
In return for the granting of amnesty applicants will be afforded a reasonable time to get their estate agency affairs in order. The committee will, thus, be entitled to give suitable directions to successful applicants on such important aspects as applications to be made by the applicant for registration as an estate agent; the payment by the applicant of any administrative or other penalties; the opening and maintenance by the applicant of a properly designated trust account; the appointment by the applicant of auditors; the auditing of the books and records of the applicant’s estate agency undertaking; and the obtaining by the applicant of the required estate agency educational qualification(s).
Applicants who are granted amnesty can be reassured that no internal disciplinary steps or measures will be instituted by the EAAB against them arising from any previous non-compliance with the provisions of the Estate Agency Affairs Act.
The EAAB is confident that great success will be achieved in implementing the amnesty and earnestly calls upon on all affected persons immediately to join the regulatory fold and to become accepted professional estate agents.
Please see the attached Amnesty Policy for more information.
End//
For all media enquiries:
Ms Portia Mofikoe
Head: Marketing and Communications
Estate Agency Affairs Board
083 4490 883 or 083 993 6120
Tel: 011 731 5662 or Portia.mofikoe@eaab.org.za

Monday, April 18, 2011

EAAB - agge nee!

don’t have MNet?



http://beta.mnet.co.za/carteblanche/Article.aspx?ID=4340

Monday, April 11, 2011

REBOSA

NEW REPRESENTATIVE REAL ESTATE INDUSTRY BODIES FORMED
In an important and positive move which will enable the South African real estate industry to participate more effectively in key decision-making within the sector, two representative bodies have been formed - one, an employees’ and real estate agents’ organisation (representing labour), and the other an employers’, principals’ or business owners’ organisation (representing business). This move is in line with current recommendations in order to separate these differing interests clearly but also to allow for greater and more widespread representation and inclusivity.
The formation of the two bodies has the support of The Institute of Estate Agents of South Africa (IEASA). IEASA is currently structured to represent the interests of both business and labour (employers and employees, and this will in time evolve to represent only the labour component of the industry, namely the agents and employees, while a new employers’ organisation for real estate business owners, which is to be known as REBOSA (Real Estate Business Owners of South Africa) has been formed. REBOSA was established at a meeting of real estate stakeholders held in Johannesburg on 29 March 2011, where the steering committees from the various provinces also proposed principle terms of reference for a constitution and a code of conduct.
As organised business, and as organised labour, these two real estate industry associations will be able to participate in key decision-making processes. REBOSA will join the ranks of the Business Coalition of South Africa or Business Unity South Africa and as such will be represented at the National Economic Development and Labour Council (NEDLAC). NEDLAC's aim is to make economic decision-making more inclusive, and to promote the goals of economic growth and social equity. Via this process, government comes together with organised business, organised labour and organised community groupings to discuss and reach consensus on issues of social and economic policy.
As far as skills development goes, real estate organised labour and business will both participate on the SSETA structures and participate in developing their own future qualifications as the SSETA includes the Property Chamber. In terms of the Skills Development Act 97/1998 a chamber must consist of an equal number of members representing employees and employers and may include such additional members as the SETA determines.
A further important role that these two constituencies will play is to actively promote and facilitate the professionalisation of the real estate industry by registering as official Real Estate Professional Bodies with SAQA (South African Qualifications Authority). In this way new representative bodies will be able to become involved in the development of a body of specialised knowledge in accordance with international benchmarks, as well as be able to develop, award and revoke its own professional designations.
These are but three areas of specific involvement that the new structures will have influence over and need to work together and deliberate on. Over and above these are, of course, the multitude of general and specific industry issues that arise on a continuous basis (the plethora of new legislative changes being current examples) and which need to be dealt with in the best interests of the industry in general.
In May 2011, IEASA/REBOSA will be hosting a road show for both real estate employers and employees in 14 different regions throughout South Africa (including those who are not IEASA members), in order to explain and further determine the road forward . It is naturally important that all who are interested in this significant development and who wish to have a say, attend these road shows, which have been sponsored by SA Home Loans as primary and PayProp as secondary sponsors, thereby making it possible for this essential event to be offered free of charge to the real estate fraternity. The dates and venues for the road show can be viewed on www.ieasa.org.za and there will be a lucky draw with a trip to this year’s NAR Conference in California, USA to be won.
For further information and online bookings go to www.ieasa.org.za

Friday, April 8, 2011

Chaos at EAAB - What's new?

They are going to do inspections internally - why? They should just manage their contracts better - if they cannot do that, why would using internal staff be any better?

http://www.businessday.co.za/articles/Content.aspx?id=139639

Monday, March 7, 2011

What is the situation now with clearance certificates?

Johannesburg’s property sales backlog has reached what role-players are describing as crisis proportions, with the
backlog in the issuing of clearance certificates for property tax in the city now up to 45 000. A Sake24 report notes
transactions worth billions cannot be processed, leaving lawyers, buyers, sellers and agents at a dead-end. Lew Geffen,
of Lew Geffen Sotheby’s International Realty, says the situation is a massive problem for the economy of Johannesburg
and that agents’ cash flow is already 40% lower than normal. Clients who sold their properties in 2009 are still awaiting
clearance certificates needed to transfer ownership. The Johannesburg Council says the backlog is due to software
problems brought about by the transition to a new system. Martin Strydom, of law firm Louw & Heyl, is quoted as saying
his firm has at least 150 property transactions that cannot be completed. ‘Law firms are under fire from buyers and
sellers, but our hands are tied.’ He says the municipality should consider the privatisation of the certificate issuing
process.

a Sake 24 report

Saturday, February 26, 2011

Portia Mofikoe - not telling the whole truth.

"No estate agent is entitled to a commission unless, at the time of the performance of the transaction, a Fidelity Fund certificate was issued to him or her," she (Portia Mofikoe) noted - 2 Feb 2011.

Read a blog that I posted some time ago:

Taljaard v Botha Properties (666/06) [2008] ZASCA 38 (28 March 2008)

CASE NO: 666/06

Some people may say this is the Sign of the Devil – if you look at the case number.

But, not to pay the agreed commission to an agent that does not have a fidelity fund certificate is not on – they had a deal the judge said.

The estate agency (Botha Properties) has won a court victory that will support estate agents who sell property without having a valid fidelity fund certificates.

The Supreme Court of Appeal of SA ruled that a seller does not have the right to have commission returned if it emerges that the estate agent was operating without a fidelity fund certificate.

The delay in issuing of Fidelity fund certificates by the EAAB are a sore point in real estate sales' circles right now - A war of words is taking place in the media between agents and Ms Mapetla of the Estate Agency Affairs Board (EAAB), after it emerged that many estate agents are not in possession of valid fidelity fund certificates.

According to the previous interpretation of the law, estate agents who do not have a valid certificate when they act as agents are not entitled to commissions earned. This seems to have been overturned by this case. As judge Nugent said:

“It seems to me that that misconstrues the purpose of the section. It was not enacted for the benefit of clients who have incurred a contractual obligation to pay remuneration to an estate agent who has performed his or her mandate – I have already held that the contract giving rise to the obligation remains valid notwithstanding the breach of s 26 – but rather to penalize estate agents who have breached the section. An estate agent who claims remuneration in conflict with s 34A might expose himself or herself to criminal sanction, and will be prevented from enforcing his or her claim, but I do not think it follows by necessary implication that a client who has settled his or her contractual obligation is accorded a right of action for its return.”

Nugent dismissed the client's appeal with costs.

Sunday, February 20, 2011

Nomonde Mapetla suspended.

Sunday Times - February 20, 2011

I have allways maintained that the qualifications are inappropriate and not conducive to allowing new black entrants into the market. This view is also shared by others in the industry.

I quote from the above article: "Geffen said that under Mapetla the EAAB 'has made it impossible for new agents to enter the market'.

Geffen said this was because of Mapetla's insistence that all agents have recognised qualifications.

'Very few people are coming in simply because the exams are too hard... it's made it impossible for black, white pink or yellow to enter.'

The EAAB is a consumer protection agency and should not attempt to regulate the industry through licencing requirements. Yes, it should stamp on agencies that defraud clients, that are unethical and dip their fingers in the tust money till; but not attempt to control the industry. That role should be handed to the profession to look after. Exactly how this is to be done needs some consultation with the industry and not the one-sided approach that the EAAB has been following.

Monday, February 14, 2011

In the streets of Johannesburg.

click to comment