A Property24 reader asks:
A Property24 reader says he plans to leave his job next year and wants to qualify as an estate agent in the meantime. How can he start the process?I work for a bank in their home loans division and I will be leaving at the end of March 2015. I want to become an estate agent and start studying now - how do I go about setting myself up?
Jaco Rademeyer, from Jaco Rademeyer Estates, responds:
The Estate Agency Affairs Act 112 of 1976 (“the Act”) contains a specific definition of “estate agent”. In terms of the Act, an estate agent is any person who holds himself out as a person who, or advertises that he, buys and sells or lets and hires immovable property, has an interest in immovable property or a business undertaking on behalf of or on instructions of someone else for gain. The Act regulates the entry of persons to the estate agency business and controls the dealings of practising estate agents with the public and their relations with other estate agents.
The Act provides that no person may practise as an estate agent unless he complies with certain prescribed requirements. Regulation 2 of the Education Regulations which came into effect on 15 July 2008 states that, a person who, as from the effective date, intends to become an estate agent should do the following:
The first thing you should do is find an internship with a compliant real estate company. The said company must hold a valid Fidelity Fund Certificate from the Estate Agency Affairs Board. In terms of Section 26 of the Act no person may perform any act as an estate agent unless a valid fidelity fund certificate has been issued to him or her. Any person who intends to start practising as an estate agent in the course of the year must apply to the Estate Agency Affairs Boardfor a fidelity fund certificate for the rest of that year. The application must be made on a form prescribed by the Board and it must be accompanied by the prescribed levy and contributions to the fidelity fund.
You must serve as an interim agent under the supervision of a principal estate agent who has continuously held a valid Fidelity Fund Certificate for a period of not less than three years. In simple terms, a Fidelity Fund Certificate is a licence to trade.
This interim period runs for a continuous period of 12 months from the date of first issue to the individual of an interim Fidelity Fund Certificate by the Estate Agency Affairs Board. Since the period runs from the date of being issued with the interim Fidelity Fund Certificate, this means that the intern must apply to the Estate Agency Affairs Board for the intern Fidelity Fund Certificate. This should be done as soon as possible because the date of issue indicates the first day of the 12 month period of the internship.
If the intern is absent for more than 30 days in this continuous period, he or she will be required to work another 45 days on top of the period he or she missed. This compulsory internship is aimed at equipping the intern estate agent with relevant workplace learning, which is essential in order to operate successfully in the industry. The interns are mentored by qualified agents with a minimum of three years’ experience who have acquired their NQF4 or NQF5 qualifications.
The intern estate agent must also keep a logbook which is also referred to as a ‘Portfolio of Evidence’, reflecting the various estate agency functions and activities that have been undertaken and performed by the intern during the course of the internship period.
Within the 12 month internship period, the intern agent is required to complete Further Education and Training Certificate: NQ4 Level 4 Real Estate, a qualification that is intended to enhance the provision of entry-level service within the property and real estate professions and to provide the broad knowledge, skills and values needed in the property and real estate environment. The intern estate agent may be certificated against the qualification after undergoing training through an accredited education provider approved by the Estate Agency Affairs Board.
On completing the twelve month practical internship and NQF Level 4 Real Estate theoretical section, which should take more or less six months to complete, the candidate will hand the assignments, portfolio and log book to be assessed and if these are found to be complete, these will then be externally moderated.
If the intern is deemed to be competent SETA will issue a certificate of competency. Once the intern estate agent has received his certificate, the Estate Agency Affairs Board Level 4 Professional Designation Exam (PDE) must be written. The candidate has three years from registration as an intern estate agent in which to do so. After writing and passing the exam (with 60% or more) a Full Status Fidelity Fund Certificate will be issued by The Estate Agency Affairs Board and the candidate is then recognised as a fully-fledged estate agent.
The National Certificate in Real Estate: NQF Level 5 is designed to meet the needs of those learners who are already involved in the field of property and real estate and have gained the qualification at level 4. These learners will be in a position now to consider practising in a supervisory/managerial career in the property and real estate industry. It is also for learners who wish to be employed in this industry. The property and real estate Industry is a well-established industry and by its very nature a constant supply of customers is ensured. This means there is a need to develop career paths in this field, and it is an industry constantly in need of skilled people.
The Real Estate National Certificate at NQF Level 5 supports the objectives of the NQF in that it gives the learner access to a National Qualifications Framework register. It will therefore ensure that the quality of education and training is enhanced, and of a comparable standard to qualifications in other sectors in South Africa and comparable to similar qualifications internationally.
The National Certificate in Real Estate: NQF Level 5 allows the learner to work towards a nationally recognised qualification. The qualification will allow both those in formal education and those already employed in organisations in the property and real estate industry access to a qualification that can be used as a benchmark to gauge their competence against local and international standards.
Anyone can become an estate agent but there are some exclusions. Certain people are disqualified in terms of the Estate Agency Affairs Act from being issue with a Fidelity Fund Certificate. If disqualified, a person is not entitled to be issued with the Fidelity Fund Certificate; the Board has discretion to issue one to the disqualified person if it considers that to be in the interest of justice. Section 27 of the Act provides that any estate agent is disqualified if he or she has at any time been dismissed from a position of trust; at any time been convicted of any offence involving an element of dishonesty; and any person who is an insolvent and who has not yet been rehabilitated; any person that is of unsound mind; has not complied with the prescribed standard of training and so forth.
An estate agent whose fidelity fund certificate has lapsed or been withdrawn must immediately stop doing business as an estate agent. If a certificate has lapsed, it must be returned to the Board forthwith, if it has been withdrawn it must be returned to the Board at the Board’s Request.
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