Legal & Ethics FAQ

February 2008

THE NEW QUALIFICATIONS:  SOME FAQs

The new qualifications for the estate agency industry have been in the news for some time now, but have still not been finalised by the authorities.  The unit standards for the new certificates were approved and registered a long time ago.  The DTI gazetted draft regulations for comment last August, and the revised version is available on the Estate Agency Affairs Board's website.  However, until the minister has signed them off and published them, they remain proposals and not the law.

As the industry's professional body in the Western Cape, we are constantly asked questions about this by our members, and by prospective estate agents.  Here, with many thanks to our regional vice-chairman for education Hanlie Vivier, are frequently asked questions, and the answers which we have to them.

Q : What are the new qualifications?

A : There are two qualifications:  the Further Education and Training Certificate in Real Estate (NQF level 4), and the National Certificate in Real Estate (NQF level 5).  The FET Certificate has been designed as for non-principals, and the National Certificate for principals.

Q : When do they come into effect?

A : The date has not yet been announced.  According to its website, the EAAB anticipates 1 April 2008, but it depends on when the Minister of Trade and Industry signs off the regulations.  As the EAAB has pointed out to us, it isn't necessary for the Estate Agency Affairs Act to be amended to introduce the new regulations, as the Act already authorises the minister to make regulations regarding standards of training.

Q : Will they be compulsory?

A : That's the intention.  The draft regulations make it quite clear that every estate agent will have to obtain the appropriate qualification in order to enter the industry or, in the case of  existing agents, to stay in it after 2011.

Q : How does one obtain them?

A : According to the draft regulations, there will be two routes to the new qualifications. 

A newcomer to the industry will have to complete a year-long internship (a.k.a. "learnership") in an estate agency firm, during which he/she will receive in-house training, and attend courses leading up to the FET Certificate.  This will replace the present unstructured "candidate estate agent" system.

An estate agent who is already in the industry will obtain the NQF 4 or 5 certificate through the Recognition of Prior Learning (RPL) process, which entails having his/her existing qualifications, experience, and knowledge assessed against the unit standards.  The deadline for completion of RPL is the end of 2011.

Q : Which authorities are responsible for the new system?

A : The SA Qualifications Authority, the Services SETA and the EAAB.  SAQA approves the unit standards, the SETA oversees education and training in all service industries, including ours, and the EAAB is the "certification partner" for our industry in particular.  All training providers and RPL assessors must be accredited by the SETA.

Q : Can/should existing estate agents start RPL now?

A : Existing estate agents can begin their RPL process now if they wish, or they can wait until the regulations are promulgated.  It's entirely up to them, but we'd advise not waiting until the last minute.  The unit standards for the FET Certificate are being revised, but the EAAB has advised that the older version will remain valid.  The unit standards for the National Certificate are also being revised, and the EAAB has suggested that principals wait until the revision is finished before starting their RPL process.

Q : Must a principal obtain the NQF 4 certificate as well as the NQF 5?

A : According to the EAAB, an existing principal need not do so, but a new entrant will need to obtain the NQF 4 certificate before progressing to the NQF 5.

Q : Is study material available?

A : The EAAB has advised us that it is preparing study material for both certificates, as well as guides for assessors and moderators, and uniform RPL instruments.

Q : What happens if an existing estate agent doesn't qualify?

A : An estate agent who hasn't obtained the required certificate by the 31 December 2011 deadline will, apparently, not be able to obtain a Fidelity Fund Certifcate for 2012, and will therefore have to leave the industry.  The EAAB has advised that it will be reinstating its inspectorate, which would deal with agents who trade illegally, i.e. without having FFCs.

Q : What happens to the existing Board exam?

A : According to the EAAB, if the new regulations are implemented in April, there will not be any further Board exams under the present regulations. 

As you can see, the situation is not yet cut and dried.  It all hinges on when the Minister of Trade and Industry promulgates the new regulations.  Naturally, we will keep our members informed of developments as they arise.