Media Release 19 March 2020 - PDI's GIVEN A BOOST IN THE REAL ESTATE INDUSTRY
19 March 2020
PREVIOUSLY DISADVANTAGED INDIVIDUALS GIVEN A BOOST IN THE REAL ESTATE INDUSTRY
JOHANNESBURG - Estate agents from disadvantaged backgrounds will receive a major lifeline from April 1 when the Estate Agency Affairs Board (EAAB) implements a resolution to help them gain entry into the profession.
The resolution intends to make it easier for estate agents from previously disadvantaged backgrounds with a turnover of less than R5 million a year to enter the predominantly white industry.
The exemption is for estate agents who are currently disqualified from operating in the industry due to non-compliance with legislative requirements in terms of the Estate Agency Affairs Act and/or the Standard of Training of Estate Agents Regulations.
EAAB Chief Executive Mamodupi Mohlala said that the PDI resolution is aligned with the newly legislated Property Practitioners Act which calls for the transformation of the property sector.
Of the 45 626 registered estate agents, 35 171 are white, 6 378 are black with Indians and Coloured people making up 4 077.
“The EAAB recognizes historic challenges that continue to be a barrier for PDI’s wanting to enter the real estate markets and this intervention is just one measure to address this anomaly,” said Ms Mohlala.
In essence, the PDI resolution, approved last year, provides an opportunity for Black estate agents - who can prove that they are previously disadvantaged – to apply for exemption from all regulatory fee requirements, including for FFC’s, financial audits and mandatory fees for education and training.
Black persons are defined in the Code of Good Practice published in terms of the section 1 of the Broad Based Black Economic Empowerment Act, 53 of 2003, read with the Code of Good Practice as African, Coloured or Indians who are South African citizens by birth or descent or by naturalization.
Ms. Mohlala said the regulator will implement the resolution on 1 April 2020 – a notice thereof will be published on the EAAB’s website, a national newspaper on Sunday 22 March 2020 and in the government gazette of Friday 27 March 2020.
A dedicated panel of executives from various departments within the EAAB will adjudicate the application process in terms of Section 27 of the Act. The panel will make recommendations to the CEO who will then present same to the board for approval.
"We are intent on implementing the laws of this country, which include transformation, but most critically we are in full compliance with the constitution of this country that allows for reverse discrimination in order to address historical imbalances and we believe that is the key rational for this resolution," Mohlala said.
The period of exemption is up to five years subject to annual review based on submitted financials and other required documents. Ms. Mohlala said the exemption would be revoked if the financial status of the PDI beneficiary changes during the review period.
She stressed that although PDI’s will be exempted from paying for education and training, they will still have to meet all training requirements to preserve the professionalism and credibility of the profession.
Applications forms can we downloaded from www.eaab.org.za or obtained from the EAAB offices at Block A, Customer Reception 63 Wierda Road East, Wierda Valley, Sandton, Johannesburg. The completed forms can be emailed to email@example.com or hand delivered to the EAAB offices.