Professionalisation of the industry - a view.

A short article on professionalisation of the industry in SA: http://www.realestateinvestor.com/media/blog/4696/

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Benefits of using an independent Estate Agency

http://www.rockyvalley.co.za/press/view/21

It was reported in the Sunday Times today (11 May 2008)

that house price growth is at an eight-and-a-half year low. This is indicated by the April results of the ABSA House Price Index.

Growth slowed to 6.8% year-on-year (in the middle section of the market)- down from 7.6% in March. It was further reported that this was the fourth consecutive month of single digit growth in nominal house prices since the 11.2% growth recorded for December 2007.

ANC Today -10 May.

Housing and human settlements

(They say)Positive results are emerging in the implementation of the comprehensive programme
dealing with human settlement and social infrastructure. Banks have indicated that
R35 billion has been released for financing housing development and ownership. The
upward movement of interest rates has however eroded the affordability of housing.

An inclusionary housing policy has been finalised and implemented across private and
publicly driven housing development. Multiple housing projects that are designed as
mixed use and mixed income housing developments serve to ensure cross subsidisation
and achieve inclusionary housing objectives.

Over 100,000 units are planned in projects such as Cosmo City, Olievenhoutbosch,
Chief Albert Luthuli and Mogale (Gauteng), Bendor and Lephalale (Limpopo) and
Klarienet (Mpumalanga). At the same time, a voucher system for building materials in
rural areas to support the self-build initiative is being investigated by the
Department of Housing. The Rental Housing Act has been amended to improve the
regulation of tenant-landlord relations.

Looking for property - check these sites out.

www.cyberprop.com
www.sundaytimesproperty.com
www.real-estate-south-africa.com
www.cellproperty.com
www.propertygenie.co.za
www.funnelproperty.co.za
www.propertytrader.co.za
www.property24.co.za
www.mls.co.za

Used any of these? - Please give us feedback, write a comment.

Attention: All Residential Estate Agents

I received this in my in-basket the other day. If you have made money from your dealings with this organisation - write us a comment below!

"Attention All Residential Estate Agents
If you come across a commercial or industrial property for sale, land for development or any seller or buyer for non-residential property, or businesses for sale, then this email is of critical importance to you!
Occasionally in your business dealings, a client will mention that he wants to buy or sell a business, some industrial land etc – a deal which neither you nor anyone in your office is equipped to handle. This is where the Broker Exchange comes into the picture.
By publishing the property through the Broker Exchange you can now receive 40% of the commission for the sale, yet all the detail is handled by those experienced in those processes.
We shall help you with any documentation you require and coach you in its use – all very simple I assure you.
The next step is that you register with us – easy enough as all you need to do is send us an email with your company and personal details. We’ll send you the operating procedures (very simple!) and samples of the most common documents you may require to submit buyers or sellers to the Broker Exchange.
So don’t delay – do it today!
Looking forward to hearing from you.

Kindest regards, Mark RothschildBROKERS EXCHANGEhttp://us.mc552.mail.yahoo.com/mc/compose?to=zaboykie@888dragon.com P.O. Box 3773, Dainfern 2055, South AfricaTel: 082 574 6688Fax: 0866 187 011"

Self regulation?

The business Business Times website carried the article: RE/Max calls for industry overhaul

According to an article by Don Robertson in the SOWETAN on 22 April 2008 RE/Max, has called for the deregulation of the Estate Agency Affairs Board and for the industry to be allowed to regulate itself.

It claims the body is incompetent, fails to return telephone calls, often fails to issue fidelity certificates or does not issue them in time. Estate agents need a fidelity fund certificate to be able to claim commission on the sale of a property. Has this been your experience? Comment below.

About 80000 estate agents were registered with the board last year. It is reported that Jeanne van Jaarsveldt, marketing and financial director of RE/Max, believes that with residential property price growth slowing, the number of agents will drop to about 35000 in time.
What are your views on this?

Van Jaarsveldt also said the consumer and industry interests would be better served if the board was deregulated and the industry could regulate itself.
Have you any views?

Eskel Jawitz, chairman of Jawitz Properties, whose son Herschel was recently appointed vice-chairman of the board, is reported to have said he doubted the board would be deregulated as there is nothing else to replace it. He also admitted, though, that the board was not functioning as it should, but the estate profession should be proactive and try and effect change from within. He also said the call to “unbundle” the board was focussing only on the negatives, but ignoring all the positives that have come about since the board came into operation such as the Code of Conduct and educational standards.

It is also reported that Ken Ralph, vice-president of the Institute of Estate Agents said the matter was “delicate and difficult”.

The Property Charter

Property Charter


If you need any information on the property charter you may find the following site useful: www.propertycharter.co.za

This website gives detailed information about transformation within the property sector and, in particular, to the implementation of the property sector charter. It contains explanations of how the Charter works on a practical level.

There is in existence a Property Sector Charter Council, the composition of which is listed on the above website. There is also a copy of the Constitution of the Council on the website.

It must be kept in mind that the property sector charter has been gazetted in terms of section 12 of the BEE Act, and is thus an expression of commitment to transformation by the property sector. The property sector charter is not, however, a binding document.

Companies who are committed to complying with the goals set in the charter often call in an independent ratings agency to determine their extent of compliance. Once a ratings agency has rated the transformation in a company it will issue a certificate reflecting the extent of compliance. There is no formal reporting requirement for companies in the property sector at the moment. Listed companies may, however, publish information as to the extent of compliance on their websites and in their annual reports.

As stated above, because the property sector charter has been published in terms of section 12 it is not a set of binding requirements. However, whether the goals set out in the charter have been attained may be relevant, for example, where a tender is made for work from the state. The panel evaluating the tender will ask questions regarding transformation and the answers to these questions are relevant in determining who the tender will be awarded to.

(This text is adapted from an email received by Charl Heydenrych from Nikki Stein, a candidate attorney at Bowman Gilfillan, in Johannesburg - 17 April 2008)

Obtain your FETC:Real Estate!

Contact:
Charl Heydenrych
082 637 3710
011 672 9019
proplib@tiscali.co.za

The sign of the devil - Agent off the hook

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.

7. Not hot off the press, but news nonetheless!

This is copied from an email received from IEASA (Central) - end Feb 08.

"In a move calculated to help unify the estate agency industry, the National Association of Real Estate Agencies (NAREA) and the Institute of Estate Agents of South Africa (IEASA) have announced that they have joined forces.
To this end, NAREA will cease to operate and five members of the current NAREA board will be absorbed on to IEASAs board of directors.

NAREA chairman Eskel Jawitz said this week his organisation wanted to create unity in the real estate industry, which was facing significant challenges and needed to present a united front in order to be able to influence its own destiny. The NAREA board had consequently resolved to join forces with the 70-year-old IEASA. This move would also further the BEE interests of the industry.

Dr Willie Marais, national president of IEASA, said the IEASA board was pleased at the efforts made by the industry leaders represented in NAREA to enable and promote unity and make it easier for industry players to operate.

The IEASA board had previously said it was willing to accommodate all leading industry players, so it could operate from a position of strength in both national and international arenas.

Now NAREAs decision to join forces with IEASA will create a stronger lobby to deal with government on issues important to estate agents, and an organization more representative of the whole SA industry in international forums.

NAREA representatives will get rights to sit on the IEASA Past Presidents Advisory Council, as well as on the IEASA Corporate Groups Advisory Council, from where they may be appointed to the IEASA national board of directors.

Meanwhile, the IEASA board has resolved that two more vice-president positions will be created, bringing the total to three vice-presidents to assist with the workload of IEASA management on national and international level. One will take responsibility for regional matters, another for international matters, and the third for statutory matters." Add a cellphone number to the cellphone directory here.
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