South Africa’s beleaguered real estate industry has entered a new era with the signing of a memorandum of understanding by its two biggest self-governing bodies.
That’s the word from Jeanne Van Jaarsveldt, general manager of Harcourts SA and vice president of the Institute of Estate Agents of South Africa (IEASA), who regards the partnership between the long-established Institute and newly formed Real Estate Business Owners of South Africa (REBOSA) as a major step towards professionalising the sector.
“Collectively, the IEASA and REBOSA represent an overwhelming portion of the real estate industry,” he says. “Together, they intend to carve a new road into the country’s property landscape in the interests of the public as well as business owners and estate agents.”
Van Jaarsveldt believes that the partnership is another welcome and positive step towards professionalising the sector, following the transfer of the Estate Agency Affairs Board (EAAB) from the Department of Trade and Industry to the Department of Human Settlements under the watchful eye of Minister Tokyo Sexwale. “The EAAB is the government-appointed industry regulator so it’s critical that its governance is sound. The transfer of the EAAB and the real estate industry to Minister Sexwale’s department was a strategic move by Government and one that has proved to be extremely successful.”
To this end, he endorses Sexwale’s decision to appoint Advocate Taswell Papier to administer the EAAB, saying that his move had paid off. “Advocate Papier got stuck into getting the EAAB’s house in order, as a result of which the administration of the EAAB has been lifted and it has a new acting CEO at the helm.”
The signing of the memorandum of understanding is a further indication of the move towards professionalising the industry and one that could not have come at a more important time, he believes. “The real estate sector is poised for dramatic legislative changes this year so it’s critical that all role players have a voice at the relevant forums. If we don’t take this seriously, decisions will be made for the industry without consultation, which could have far-reaching effects on its functionality in terms of transformation, regulation, education, qualification, EAAB inspections and SARS to name but a few. After numerous meetings and negotiations in 2012, the IEASA, which currently represents both employees (agents) and employers (principals), and REBOSA (which represents employers) have come to a clear understanding of how to best represent the industry in an equal, representative and inclusive manner,” he says.
According to Van Jaarsveldt, one of the partnership’s key objectives is the transformation of the industry in a way that will benefit both employees and business owners going forward. “Statistics released by the EAAB at the end of 2012 show that the real estate industry is predominantly white, with a mere 8% (2917) of the 34 191 registered estate agents being black. This is a concern but in same breath a huge opportunity since the black middle class home owner is the fastest growing segment of the market. Accordingly, the partnership will focus on creating awareness among black people of the viability of real estate as a career, not only financially but also with regard to personal growth and development prospects.”
Further to this, he says the affiliation between the two entities will serve as a springboard for industry-related bodies to engage in meaningful discussions about key issues such as legislation and industry governance.
“We welcome tighter controls such as the Receiver of Revenue’s new taxation rules on agents’ commission, which while not directly affecting buyers and sellers, does encourage estate agents and principals to ensure their own houses are in order. This is integral to the integrity and professionalization of the industry,” he avers.
