It seems are the days when everyone and his friend could become an estate agent – out for the easy pickings in a booming property market – are gone. Apart from the downturn in the market, Government has now stepped up the regulations relating to training standards and continuing professional development of estate agents.

The Minister of Trade and Industry, Mandisi Mpahlwa, published the new Standard of Training of Estate Agents Regulations, 2008 which will take effect on 15 July 2008. Compliance with the prescribed standards of training for estate agents is crucial in light of sections 34A and 34B of the Estate Agency Affairs Act, 112 of 1976, as failure to comply or to hold a fidelity fund certificate could mean that the agent may not be entitled to remuneration work done.

From the effective date of 15 July 2008 anybody wishing to become an estate agent will have to serve as an intern estate agent under a principal estate agent for one year after form the date that the intern was first issued with an intern fidelity fund certificate by the Estate Agency Affairs Board (“the Board”).

An intern estate agent may not perform any act as an estate agent without the active supervision and control of a principal estate agent (or an agent that has held a fidelity fund certificate continuously for three years) or unless the intern has disclosed the fact that he or she is an intern estate agent in all printed material relating to the intern (except authorized advertisements in the press).

Another highlight is the requirement that intern estate agents will not be allowed to complete or draft any documentation relating to a transaction negotiated by him or her, unless a principal estate agent (or an agent that has held a fidelity fund certificate continuously for three years) is present and certifies on the documentation in question that it has been completed in his or her presence.

A person will only be allowed to register as an estate agent once they have complied with the internship requirements and the educational requirements set out in the Regulations. From the abovementioned effective date all non-principal estate agents will have to obtain the NQF (“National Qualification Framework”) Level 4 qualification called the Further Education and Training Certificate: Real Estate, and the NQF Level 5 qualification called the National Certificate: Real Estate is prescribed for all principal agents. These certificates will be prerequisites for the Professional Designation Examination (“PDE”), which is needed to be registered as a full status estate agent by the Board and to obtain a fidelity fund certificate.

The good news for existing agents is that the Regulations prescribe a process of recognition of prior learning (“RPL”). This process will include the identification, assessment and acknowledgement of skills and knowledge which an estate agent may have, whether it was obtained through formal training and education or experience on the job, and will take place within the context of the abovementioned certificates.

Furthermore, agents who are registered as principal or non principal agents on the effective date and that have continuously held a full status fidelity fund certificate issued by the Board for a period of not less than 5 years will be exempted form the PDE.

In addition to the above, the Regulations provide that the Board may prescribe any reasonable Continuing Professional Development requirements as contemplated by the NQF.

The full Regulations can be viewed here: http://www.info.gov.za/view/DownloadFileAction?id=82569

The Estate Agency Affairs Board’s website (www.eaab.org.za) has further information on the new training requirements, based on the draft regulations published in January this year.

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