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Real estate agents in government's crosshairs with new level 8 BEE requirements

Details

PPRACity Press reports that more than 40% of the country’s real estate agencies and nearly half of SA’s 40,000 registered real estate agents’ operations could be disrupted due to the government’s latest black economic empowerment (BEE) requirements that it is enforcing on the private sector.

Real estate agents and agencies will henceforth have to comply with level 8 BEE scores to obtain or renew fidelity fund certificates. Without these certificates, real estate agents cannot legally do business. The required score is said to be unattainable for many small businesses because it amounts to more than 50% black ownership. Piet le Roux, CEO of Sakeliga, said the Property Practitioners Regulatory Authority (PPRA) suddenly introduced the requirement. Sakeliga is already preparing to fight the enforcement of the BEE scores in court and describes the PPRA’s decision as illegal, unconstitutional and harmful to the economy. Jan le Roux, CEO of the Real Estate Business Owners of SA (Rebosa), said the PPRA unexpectedly spoke about the required BEE score for the first time a few weeks ago during a webinar. He explained that until now, only a valid BEE certificate, issued by a verification agency with experience in the real estate sector and registered with the SA National Accreditation System, was required. Even if such a BEE certificate shows the business is below a certain BEE level, the certificate is still valid. Now, compliance at a certain level is also required before the fidelity fund certificate will be issued. Le Roux said this could disrupt the operations of 2,400 of the country’s 6,200 real estate agencies when they applied for renewal next year. In his view, the consequences could be catastrophic.

  • Read the full original of the report in the above regard by Riana De Lange at City Press (subscriber access only)
  • Lees ook, Pas SEB toe, of sluit jou deure, sê eiendomsreguleerder, by Maroela Media


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