When will the Real Estate Sector become BEE compliant?
The Department of Human Settlements and the EAAB's (Estate Agency Affairs Board) recently launched 'One Learner - One Estate Agency' internship programme is yet to be implemented as no details regarding the funding that will make it possible have been issued.
One internship per estate agency
The programme aims to create an internship position at each of the estimated 10,000 estate agencies operating in South Africa. The idea is to open up the sector to young people (the average age of an estate agent currently being 58), women and previously disadvantaged people. It's required that applicants be below 35 years of age.
According to EAAB chairperson, Professor Kwandiwe Kondlo, the programme will run over three years, ending in March 2017, enabling school-leaving learners and tertiary students to become one of 10,000 new real estate agents.
The project will consist of a mandatory year-long internship during which the EAAB has committed to monitor and facilitate each internship position, thereby ensuring that each new entrant receives invaluable theoretical as well as practical learning.
"REBOSA (Real Estate Business Owners of South Africa) is excited by a project of this nature as it's something the sector has been lacking for years; it's not an industry that's traditionally been easily accessible by people without resources and this programme could make significant inroads. REBOSA is however concerned about how it will be funded as details regarding this are yet to be announced," says Jan le Roux, CE of REBOSA.
Who will pay for it?
One of the largest factors has been the cost. When rookie agents first start working it could take a while before they sell a property, and even if they start selling quickly it will still take months for the transaction to go through and their commission to be paid. However, they need the funds to keep themselves going for the first six to nine months. This necessitates some form of sponsorship which both new entrants and estate agencies struggle to obtain.
According to Hannes Mouton, CEO of Services Seta stated that its board had committed to the programme and would determine the funding and disbursement mechanisms at a meeting held on 6 May. "Unfortunately that date has come and gone with no resolution. REBOSA sincerely hopes that this programme will receive the funding it so richly deserves and is disappointed that it seems to be delayed at present," says le Roux. "We support this project and will do what we can to see it come to fruition."
