PROCEDURE FOR THE GRANTING OF EDUCATIONAL EXEMPTIONS TO NON-EXECUTIVE DIRECTORS OF ESTATE AGENCY COMPANIES – 1 APRIL 2018
In accordance with the provisions of the Education Regulations and the Estate Agency Affairs Act, all principal estate agents including all Directors of an estate agency company must comply with prescribed standards of education and training including certification against the NQF Level 5 Real estate qualification (National Certificate: Real Estate) and have passed the Professional Designation Examination for principal estate agents (PDE5) to enable such principal estate agents and Directors to be issued with a valid fidelity fund certificate as required by section 26 of the Estate Agency Affairs Act.
To assist affected estate agency companies, it has been decided to allow the non-executive directors of those companies to apply to the EAAB for the grant of an educational exemption against the education requirements for principal estate agents. Non-executive directors may also apply to be exempted from participation in the EAAB’s mandatory Continuing Professional Development (CPD) programme when making such applications.
It is to be emphasised, that any exemption thus granted to a non-executive director is non-transferable and that the non-executive concerned shall be obliged immediately to notify the EAAB in writing should there be any change in the circumstances of that director which may have the effect of rendering the person concerned no longer a non-executive director of the estate agency company.
A non-executive director, for the purposes of the implementation of this exemption, has been defined as being a member of the board of directors, duly registered as a director of the company concerned by the Companies and Intellectual Property Commission, of an estate agency company who is not strictly engaged in the day-to-day estate agency activities, as defined in section 1(vi) of the Estate Agency Affairs Act, of the company but who may, nevertheless, be involved in the policy-making and planning functions of the organisation so as to ensure compliance with the provisions of the Companies Act and who may, moreover, have been appointed due to, inter alia, knowledge, experience, competency, calibre and other relevant personal qualities.
Non-executive directors seeking to apply for the grant of the relevant exemption so as to be able to be issued with a valid principal fidelity fund certificate by the EAAB will be required to follow an established procedure. Such applicants will, in addition, be obliged to pay an assessment fee in a total amount of R3 000.00 to the EAAB in respect of the consideration of their exemption applications. Fees must be paid into the following Banking details:
- Account Name: Estate Agency Affairs Board
- Bank Name: ABSA
- Account Number: 4052033310
- Branch code: 632005
- Payment reference: Applicant’s allocated 7 digit reference number if already registered as practicing estate agent or ID number if never registered as a practicing estate agent. Those unsure of this number must contact our Contact Centre prior to making the payment, 087 285 3222.
THE EDUCATION AND TRAINING DEPARTMENT
ESTATE AGENCY AFFAIRS BOARD