Roadshow on Property Sector Code: find out how does it work

May 3, 2018

Rebosa is embarking on a road show in May to unpack the Amended Property Sector Code in detail and to explain how BBBEE will be implemented in the property sector in terms of the Codes of Good Practice Scorecard.

The Amended Property Sector Code (PSC) was gazetted on 9 June 2017 to address inequalities in the property sector and promote economic transformation. It (including the scorecard incorporated therein) became effective immediately and applies to all privately owned and public enterprises within the property sector. In addition, it is binding to all organs of state and public entities, organized labour and communities involved with or interested in the property sector.

The gazetting of the Code coincided with the publication of the Property Sector Charter Council’s 2015-2016 State of Transformation Report for the Property Sector. The Council acknowledged that attempts had been made to make the industry more inclusive, but found that black people, black women and people with disabilities, in particular, are still under-represented in the property sector. The Council’s research found that most of the enterprises in the property sector were still owned by white people.

The amended Code is aimed at fast-tracking the process of transformation in the property sector and has set new targets for black ownership and for established companies to financially support companies that are at least 51% black owned.

The impending Property Practitioners Bill proposes that all Property Practitioners will require a BEE certificate, without which Fidelity Fund Certificates (FFCs) will not be issued. Although not yet a legal requirement, having a compliant BEE certificate will be important when doing business with government/parastatals, big corporations, property developers and banks.

The only property enterprises exempted from obtaining a BEE certificate, are micro enterprises (‘EME’) with a turnover of less than R2,5 million. They can provide an affidavit confirming their annual turnover. EMEs automatically gain Level 4 BBBEE status. If there is 51% black ownership, they are given Level 2 status, while EMEs with 100% black ownership immediately gain Level 1 status. Affidavits are valid for a period of one year, and then need to be re-done.

“BEE compliance is becoming more important and more complicated. Agencies need plans and strategies for the Amended Property Sector Code, with specific focus on ownership and skills development as priority focus areas,” said Jan le Roux, CEO of Rebosa, who will also be hosting the talks.

The Rebosa road show will unpack the amended Code in detail and explain how BBBEE will be implemented in terms of the Codes of Good Practice Scorecard. Adrian Frewen, an Associate in the Commercial Division of Phatshoane Henney Group of Attorneys, will be a special guest at the three roadshows.

The first event takes place in the Garden Court in Durban on Thursday 10 May from 11:00-12:30. Then follows Johannesburg on Friday 18 May with the event hosted at the Protea Hotel at the OR Tambo International Airport from 11:30-13:00 and the last event is in Cape Town on Wednesday 23 May from 11:00-12:30 at the River Club. Space is limited, so booking is essential. Attending the road show events are free, two non-verifiable CPD points will be issued.