New property act makes the process of becoming a real estate agent easier
|Published
Becoming a real estate agent just became far more achievable with the introduction of the new Property Practitioners Act. Photo: Jcomp/Pixabay
BECOMING a real estate agent just became far more achievable with the introduction of the new Property Practitioners Act.
According to Tony Clarke the chairperson of the Real Estate Business Owners of South Africa (Rebosa), the new act is a welcome step in the right direction for an industry previously plagued by unclear and often poorly implemented legislation.
“Under the PP Act, prospective agents can study and sit their Professional Designation Examination (PDE) before joining an agency. No more year-long internships or expensive NQF4 exams. If you have passed your PDE, you can literally start selling property in less than six months – under supervision – provided you complete a further six practical course modules,” said Clark.
Adrian Goslett, chief executive and regional director of RE/MAX, explained that this act removes one of the largest obstacles aspiring real estate professionals face.
“Under the previous regulations, it could take a year before a new agent could earn any of their commission which hindered transformation within the industry,” said Goslett.
In the new act, regulation 33.2.3 under chapter 7 of the PPA regulations states the following:
No person shall be entitled to practice as a property practitioner unless such person has first completed a practical training course which will constitute a minimum of six modules to be completed over a maximum period of six months.
According to the regulations, for a period of six months following the date upon which a person first becomes qualified and registered as a non-principal property practitioner, such person shall not, in their capacity as a property practitioner:
- enter any mandate for the sale or purchase of any property, including the letting or hiring of any property with any member of the public
- conclude or cause to be concluded any agreement for the sale or purchase of any property or the letting or hiring of any property, unless such mandate or agreement has first been reviewed and co-signed by another qualified property practitioner.
Goslett said that this allows anyone who has passed the professional designation examinations the opportunity to earn commission much sooner, providing that they have a registered property practitioner to sign off on and oversee their transactions.
“This also only lasts for six months, which is far less taxing for both the candidate estate agent as well as for the registered property practitioner who has to oversee the deals,” said Goslett.
To ensure greater access to professional designation examinations, the act states that professional designation examinations will be capable of being written at least four times per annum at such intervals as are determined by the authority.
The costs of the regulated Continued Professional Development training are also significantly reduced thanks to the introduction of the new Act.
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