- Did you know that you now can move from agencies or change your status, without applying for a new Fidelity Fund Certificate?
- Did you know that Fidelity Fund Certificates now only need to be renewed every three years?
- Did you know that fees have been standardised?
It’s good news for real estate practitioners in terms of FFCs (Fidelity Fund Certificates). Let’s look at what was, versus what is in 2022.
The old versus the new
The old: In previous years interns, agents and principals all had to apply for an FFC annually.
The new: “Today, through vigorous campaigning by NPPC, industry practitioners, whether they be candidates, agents or principals, need only apply once, every three years,” explains Jan le Roux, CE of Rebosa.
The old: The FFCs included the certificate holder’s name, designation and the name of the agency where they worked. A change to a different agency (during any time of the year) meant that agents needed to apply, and pay for, a new certificate. Apart from the hassle and cost, it often took time to receive a new certificate, during which the agent could not practice legally.
The new: FFCs issued in terms of the regulations that took effect on the 1st of February this year are valid for a three-year period in whatever capacity that person serves and with whatever firm. “This is great news for agents in that they can now change agencies during the three-year period without the delay of getting a new certificate”, shares le Roux.
FFCs should only include the following information: Name “PPRA”, date of issue, date valid until, name of holder, certificate number and sector, i.e., “estate agent”. The agency name and status of the individual should not be shown on the FFC, and members can insist on re-issues of FFCs in such instances at no cost.
How: Regulation 15.8 states clearly that the holder of a Fidelity Fund Certificate shall inform PPRA within 14 days of any change in the information supplied to PPRA at the time of applying for the issue of a certificate. Le Roux advises that “The PPRA has no forms/systems in place to facilitate this at the moment, hence an email should suffice. It is in your best interest to insist on acknowledgement and to retain proof of advisement. Agents joining your agency need not have changes made to their FFCs, even if it incorrectly mentions another firm”.
Emails can be sent to: applications@theppra.org.za
The old: Having to apply several certificates when practicing in different capacities in the same industry.
The new: Regulation 41.22 states that where a natural person acts as a property practitioner in different capacities in the same industry, a single FFC shall be issued to that natural person in respect of all capacities in which that person acts as a property practitioner. This clearly means that somebody who serves as a principal or director of more than one estate agency/company need only one certificate which would be applicable in all circumstances, again no extra fees apply.
When a director wants to serve as a principal of more than one estate agency, ensure that PPRA is advised accordingly. A resolution of the directors of the company authorising that appointment as well as a copy of the CIPC confirmation must be submitted.
There is no fee payable nor FFCs required for branches, the main FFC can be displayed.
The old: Different fees depending on designations. In the past an agent would pay R580 for an FFC, and a principal would FFC cost R1,200.
The new: Costs have been standardised and all FFC certificates now cost R 2340 for three years (R 780 pa).
“Unfortunately, the PPRA currently does not allow for annual payment for FFCs, instead charging up front for the full three years at a cost of R2,340. Rebosa believes that this cost could hinder transformation as it’s a big amount to pay for a candidate practitioner who is entering the market and not yet earning commission”, says le Roux.
The old: BEEE certificates had to be produced annually by agencies upon application for their FFC.
The new: These certificates now only need to be submitted every three years.
