Property sector code for B-BBEE gazetted

The minister gazetted the Property Sector Code in terms of Section 9 (1) of the B-BBEE Act of 2003.

According to Davies, the aim of the Sector Code is to enhance transformation. "The objectives of the Sector Code include promoting economic transformation in the property sector in order to enable meaningful participation of black people including women, the youth and people with disabilities.

"It is also aimed at promoting property development and investment in under-resourced areas which enhance basic infrastructure, encourages investment and support micro and small enterprises," he explained.

In most aspects the Property Sector Code is similar to the Generic Codes except that it introduces the eighth element of the scorecard called Economic Development.

There are two measurement categories for the Economic Development element.

"The first one is the commitment by the entities that deal in property development to invest at least 10% of their annual property development investments in under resourced areas. This is a transformational infrastructure commitment with a purpose to stimulate investment in those areas, reduce service inequalities and to create economic opportunities in those areas," Davies added.

The second measurement category is the commitment by entities in the sector when they are engaged in property disposal to dispose 35% of assets that are being disposed to black owned enterprises that are B-BBEE status of Level 1 to Level 3, he said.

This will ensure that black owned enterprises are given the opportunity to own and trade in assets, the minister added.

Another key highlight of the Sector Code is that the threshold for exemption from compliance for estate agents has been reduced to R2.5 million of annual turnover and not R5 million as in the Generic Codes.

This is to ensure that as many estate agents as possible are given the opportunity to contribute towards transformation of the sector, he said.

According to the Sector Code, the Property Charter Council will monitor the progress of the implementation of the Property Sector Codes as per the provision of the Codes of Good Practice.