ON REGULATING THE POSITION OF ESTATE AGENTS HOLDING FULL STATUS FIDELITY FUND CERTIFICATES DESPITE HAVING FAILED TO COMPLY WITH THE REQUIREMENTS OF THE STANDARD OF TRAINING OF ESTATE AGENTS REGULATIONS, 2008
1.PURPOSE AND SCOPE
The purpose of Practice Note ETD01/2020 is to create a process to facilitate compliance by those estate agents who, although holding Full Status Fidelity Fund Certificates, have not complied with the mandatory provisions of the Education Regulations. This is to be done in accordance with a policy approved by the Board pursuant to which such persons, whether they are Intern, Non-Principal or Principal estate agents, are granted a specific extension of time within which to ensure due compliance with the Education Regulations.
The practice note does not apply to persons seeking to enter the estate agency sector for the first time and/or to persons who have never previously applied for, or been issued with, a valid Fidelity Fund Certificate by the EAAB.
2.DEFINITIONS
| Term | Definition |
| Act | The Estate Agency Affairs Act, 112 of 1976.
|
| Certification | Certification occurs when:
Certification shall include the grant of an equivalency exemption against the NQF Level 4 real estate qualification and/or the NQF Level 5 real estate qualification, as the case may be, in accordance with the EAAB Board-approved equivalency exemption policy. |
| EAAB | The Estate Agency Affairs Board |
| Education Regulations | The Standard of Training of Estate Agents Regulations, 2008, published in Regulation Gazette No. 8902 on 4 June 2008. |
| NQF | The National Qualifications Framework established and implemented by the South African Qualifications Authority. |
| NQF Level 4 real estate qualification | The Further Education and Training Certificate: Real Estate (SAQA QUAL ID 59097) which must be completed by Non-Principal estate agents. |
| NQF Level 5 real estate qualification | The National Certificate: Real Estate (SAQA QUAL ID 20188) which must be completed by Principal estate agents. |
| PDE or Professional Designation Examination | The Professional Designation Examination conducted by the EAAB in accordance with the provisions of regulation 7(3) of the Education Regulations. |
| PDE 4 | The Professional Designation Examination conducted by the EAAB for Non-Principal estate agents. |
| PDE 5 | The Professional Designation Examination conducted by the EAAB for Principal estate agents. |
| Sector | The estate agency sector regulated by the EAAB pursuant to the provisions of the Act. |
| Services SETA | The Services Sector Education and Training Authority. |
3.INTERN ESTATE AGENTS WHO HAVE BEEN REGISTERED IN THAT CAPACITY FOR A CONTINUOUS PERIOD EXCEEDING TWENTY-FOUR MONTHS
3.1 Persons who, according to the records of the EAAB, have continuously been registered as Intern estate agents for a period exceeding twenty-four months, calculated as from the date of the first issue to such persons of a valid intern Fidelity Fund Certificate, are granted until 30 June 2022 within which to:
3.1.1 Submit a completed Intern logbook to the EAAB, duly signed off by both the Intern estate agent and the principal or qualifying mentor estate agent, in the format required by the EAAB from time to time, for assessment if that Intern estate agent was first issued with an intern fidelity fund certificate during, or subsequent to, the 2013 calendar year, alternatively, submit a letter from a Principal of the estate agency enterprise where the Intern estate agent served the internship period, on a letterhead of the enterprise, and dated and signed by a Principal of the enterprise, confirming that the intern estate agent successfully completed the twelve-month internship period if that Intern estate agent was first issued with an Intern Fidelity Fund Certificate prior to the 2013 calendar year;
3.1.2 Be certificated against the NQF Level 4 real estate qualification; and
3.1.3 Pass the PDE 4.
3.2 Intern estate agents contemplated in paragraph 3.1 who fail to comply with paragraphs 3.1.1 to 3.1.3, as the case may be, by 30 June 2022 will be ipso facto rendered disqualified in terms of section 27(a)(vi) of the Act.
4.INTERN ESTATE AGENTS WHO HAVE NOT PASSED THE PDE 4 WITHIN A PERIOD OF TWO YEARS AFTER HAVING BEEN CERTIFICATED AGAINST THE NQF LEVEL 4 REAL ESTATE QUALIFICATION
4.1 Intern estate agents who, according to the records of the EAAB, have failed to pass the PDE 4 within a period of two years after having been certificated against the NQF Level 4 real estate qualification are granted until 30 June 2022 within which to enrol for and pass the PDE 4.
4.2 Intern estate agents contemplated in paragraph 4.1 who fail to pass the PDE 4 by 30 June 2022 will be ipso facto rendered disqualified in terms of section 27(a)(vi) of the Act.
5.FULL STATUS NON-PRINCIPAL ESTATE AGENTS WHO HAVE NOT BEEN CERTIFICATED AGAINST THE NQF LEVEL 4 REAL ESTATE QUALIFICATION AND/OR WHO HAVE NOT PASSED THE PDE 4
5.1 Registered Full Status Non-Principal estate agents holding a valid fidelity fund certificate issued by the EAAB who have not been certificated against the NQF Level 4 real estate qualification and/or have not passed the PDE 4 are granted until 30 June 2022 within which to be certificated against the NQF Level 4 real estate qualification and/or to pass the PDE, as the case may be.
5.2 Estate agents contemplated in paragraph 5.1 who fail to be certificated against the NQF Level 4 real estate qualification and/or to pass the PDE 4, as the case may, by 30 June 2022 will be ipso facto rendered disqualified in terms of section 27(a)(vi) of the Act.
6.REGISTERED FULL STATUS PRINCIPAL ESTATE AGENTS WHO HAVE NOT BEEN CERTIFICATED AGAINST THE NQF LEVEL 5 REAL ESTATE QUALIFICATION AND/OR WHO HAVE NOT PASSED THE PDE 5
6.1 Registered Full Status Principal estate agents holding a valid Fidelity Fund Certificate issued by the EAAB who have not been certificated against the NQF Level 5 real estate qualification and/or have not passed the PDE 5 are granted until 30 June 2022 within which to be certificated against the NQF Level 5 real estate qualification and/or to pass the PDE 5, as the case may be.
6.2 Estate agents contemplated in paragraph 6.1 who fail to be certificated against the NQF Level 5 real estate qualification and/or to pass the PDE 5, as the case may, by 30 June 2022 will be ipso facto rendered disqualified in terms of section 27(a)(vi) of the Act.
7.THE CONSEQUNCES OF BEING RENDERED DISQUALIFIED AS AN ESTATE AGENT IN TERMS OF SECTION 27(a)(vi) OF THE ACT
The consequences of a disqualification in terms of section 27(a)(vi) of the Act are that:
7.1 The disqualified persons will be blocked and unable to renew their Fidelity Fund Certificates for the 2022 or any ensuing calendar years.
7.2 An administrative penalty of R1000.00 will be imposed on such disqualified persons.
7.3 The administrative penalty must be paid by the disqualified persons concerned before any further Fidelity Fund Certificates may be issued to them.
7.4 Disqualified persons can, should they choose to do so, apply to the board under the proviso to section 27 of the Act, for the issue of a Fidelity Fund Certificate for the 2022 calendar year.
7.5 In launching an application in terms of the proviso to section 27 of the Act applicants must satisfy the board, with due regard to all relevant considerations, that the issue of a Fidelity Fund Certificate for 2022 will be in the interest of justice.
7.6 A substantive application made by a disqualified person in terms of the proviso to section 27 of the Act must be lodged with the EAAB, in the prescribed manner, within a period of sixty days after the person concerned is notified by the EAAB, in writing, of the disqualification.
7.7 Failure by a disqualified person to apply for the issue of a Fidelity Fund Certificate for the 2022 calendar year pursuant to the proviso to section 27 of the Act, within the period set forth in 7.6, will render that person ipso facto automatically deregistered as an estate agent.
7.8 A disqualified estate agent who applies for the issue of a Fidelity Fund Certificate pursuant to the proviso to section 27 of the Act will remain blocked until:
7.8.1 The EAAB has received a substantive application from the applicant, in the form of an affidavit, together with all supporting documents necessary or required to enable the application to be duly considered, in which the applicant provides sound and valid reasons as to why the issue of a Fidelity Fund Certificate to the applicant will be in the interest of justice; and
7.8.2 Such application has been duly considered and approved.
7.9 After receipt, consideration and approval, of a compliant application made in terms of the proviso to section 27 of the Act for the issue of a Fidelity Fund Certificate for 2022, the applicant estate agent may:
7.9.1 Be unblocked; and
7.9.2 Granted a maximum further period of six months, calculated as from the date of the unblocking of the applicant estate agent, within which to comply with any outstanding educational requirements in terms of the Education Regulations.
7.10 No further extensions of time, other than that provided for in 7.9.2, shall be granted to the applicant estate agent.
7.11 Failure by an applicant estate agent to comply with any outstanding educational requirements in terms of the Education Regulations within the period referred to in 7.9.2 will render that estate agent ipso facto deregistered as an estate agent.
7.12 Estate agents who have been deregistered by the EAAB pursuant to 7.11 may reregister as an estate agent but only in the capacity of an Intern estate agent. Such persons shall be required to comply with all the requirements pertaining to an Intern estate agent.
8. EFFECTIVE DATE OF PRACTICE NOTE
This Practice Note shall come into effect on 01 July 2021.
Issued by:
THE ESTATE AGENCY AFFAIRS BOARD
25 AUGUST 2021
