Ensuring you obtain and

maintain your FFC

Pam Snyman 2013

Requirements for a Profession

• An intellectual basis

• Private practice

• Advisory function

• Tradition of service

• A code of conduct

• A representative body

Benefits of the new educational dispensation

to the estate agency profession

• The intellectual basis requirement for

professionalism is obtained by the new educational

dispensation re qualifications, PDE and now also

CPD.

• CPD ensures ongoing high standards of

competence and service excellence

• Professionalism supposes competence, skill,

expertise in a specific field and emotional

intelligence (honesty, integrity, credibility)

Confucius say:

"If you are in a book store and cannot find the book you

are looking for, you're obviously in the....

Real estate educational requirements

(qualification & PDE)

• Practising estate agent (15 July 2008) in

possession of a full status FFC: NQF 4 by RPL before 31 December 2013 or exemption if have tertiary qualification. Must pass PDE within 2 years of qualifying.

• Practising principal (15 July 2008) in possession of FFC:NQF 5 by RPL before 31 December 2013 or exemption if have tertiary qualification. Must pass PDE within 2 years of qualifying.

Professional designations

If you have passed the relevant PDE, you may use the following professional designations whilst holding a valid FFC:

• PPRE: Professional Practitioner Real Estate (PDE L4)

• MPRE: Master Practitioner Real Estate (PDE L5)

• CPRE: Chartered Practitioner Real Estate (complete PoE and be found competent substantiating their meaningful and significant contribution to the estate agency sector)

Exempted persons may not use these designations

NEW entrants (post 15/07/08), with FFC’s

• New estate agent in possession of an Intern

FFC: NQF 4 qualification: FETC: Real Estate or

exemption if have tertiary qualification. Must

pass PDE within 2 years of qualifying. (PPRE)

• New principal with FFC issued after 15/07/08

:NQF 4 qualification: National Certificate Real

Estate via RPL or exemption if have tertiary

qualification. Then NQF 5 qualification. Must

pass PDE 5 within 2 years of qualifying (MPRE)

New Entrants: Principal & Non-

Principal (without FFC’s)

• Regardless of current qualifications, must register as Intern

Estate Agent with the EAAB and complete 12 month

internship (logbook, mentor, supervision & control)

• During 12 month internship, get equivalency exemption or

complete L4 qualification (non-principal) and L4 & L5

qualification if intend becoming a principal and complete

PDE L4.

• On expiry of internship period, the non-principal can get a

status upgrade to full status

• Aspiring principals have 12 months to complete PDE 5

after being upgraded and registered as principal

Exemptions

• Qualifications:

equivalency for appropriate qualifications awarded

by SA tertiary institutions

• PDE:

statutory exemption – in possession of valid FFC

for 5 consecutive years from 15 July 2003 until 15

July 2008

60 years old exemption – (for either or both the

qualification and or PDE: valid FFC for 5 continuous

years / FFC in current year / no criminal convictions /

pay R1 250 / submit PoE / interview panel

Continuous Professional

Development (CPD)

• Mandatory CPD programme based on

international best practice and prescribed

in Regulation 8 of the Education

Regulations of the EAAA 112/1976:

• In terms of which it must be reasonable

and take place over a three year cycle

• 60 points (1pt = 1hr)

Underlying objectives of mandatory CPD

• To ensure that professional estate agency

practitioners remain current in their practice with

respect to knowledge, skills and competencies as

well as the proficient manner in which they render

service.

• To ensure that they are kept fully acquainted with

material changes and developments occurring

within the estate agency sector.

• To register and quality assure providers of

professional development activities

Benefits of CPD to estate agents

• In our fast evolving, ever changing, volatile and exceptionally competitive real estate environment, estate agents must participate in value-adding, appropriate and meaningful CPD

• They can then achieve high standards of performance excellence and simultaneously advance themselves in their career of choice

1 August 2012

• The ‘effective date’ ito CPD

• From which date all practising estate agents, both principals and non-principals applying for the renewal of their FFC’s must satisfy the EAAB that they have complied with the prescribed CPD requirements in respect of the preceding calendar year

• After the effective date, the estate agent is exempted from CPD requirements for the calendar year in which a qualification is obtained

6 categories of CPD activities

• Education & Training (max 45pts)

• Professional Development (max 5pts)

• Corporate Social Investment (max 5pts)

• Mentoring and Coaching (max 5pts)

• Reading and Publishing (max 5pts)

• Personal Development ( max 5pts)

Compulsory Category: Education and

Training (15pts pa = 45)

• All education and training gained through

acquiring SAQA accredited qualifications

• Attendance of short courses, seminars,

conferences, workshops where the focus

is content specific and relevant (lecturers,

facilitators and contributors are included)

• Offered by accredited CPD providers

Elective Categories ( max 5pts

each, over 3yr cycle)

• Professional Development : Activities that

contribute toward your development in relation to

estate agency and property sectors

• Corporate Social Investment: To expand new

and existing sectoral enterprises and activities to

raise public awareness of real estate as a career,

source of wealth, and store of value. (donating

funds, taking in interns from previously

disadvantaged sectors, opening up internal

training academies to pd students)

Continued…

• Mentoring and Coaching: When estate agents assume responsibility for the provision of guidance and the transfer of knowledge and skills to an intern or junior employee. Also supervision of tertiary studies by interns or employees

• Reading and Publishing: Reading or publishing of appropriate and relevant articles

• Personal Development: Participation in activities that contribute to the development of knowledge and skills that may not be directly related to real estate, but will grow the estate agent as a person, professional practitioner or sector leader

Maintenance of PoE for CPD

• A Portfolio of Evidence must be maintained containing original evidence supporting CPD activities. May be required to submit it to the EAAB.

• Examples: Certificates of Attendance, invoices, seminar notes, study notes/handouts etc

• Maintain a CPD record card containing dates, duration and description of activities, evidence and no of points

• Declaration that content of record card is a true reflection of activities undertaken

Some examples

Level 4 & 5

• Understanding Real Estate as Investment

• Estimation of Market Value

• Application of the Code of Conduct (recent cases)

• Professional Conduct (emotional intelligence)

• Applying CPA to mandates, offers to purchase,

sale agreements and leases

• Financial Calculations for Investment Analysis

Continued…

• Property ownership: entities & the estate agent’s

responsibilities

• Sectional Title as a form of Property Ownership

• Installment Sales

• Lessor and Lessee Rights ito current legislation

and common law

• The estate agent’s legal and ethical

responsibilities regarding earning of commission

• The Property Transaction Regulatory Authority Act

Continued…

Level 5:

• Sustainable Competitive Advantage in Real Estate

• The Property Charter and its Consequences

• The NCA

• Compliance in terms of Accounting Practices

• SARS: Compliance for Estate Agencies

• Property Economics and Finance

• Advanced Leadership for managers,

“It is not necessary to change.

Survival is not mandatory”. W Edwards Deming

The Beginning……