MAIN IMAGE: Jan le Roux, CE of Rebosa
Editor
We’ve extensively reported the issues surrounding agents paying HOA fees to operate within secure estates or gated communities. Until this week, agents have truly been caught between a rock and a hard place, not being able to trade without paying the fees (sometimes referred to as marketing or administration fees) while risking their FFCs and getting fines if they do pay the fees.
A quick correction re Zimbali Estate
Last week, we reported that Zimbali Estate in Kwa-Zulu Natal is charging agents an R6,000.00 fee to write an estate ‘exam’ before being given access to sell properties in the estate. This information was incorrect.
We have thus confirmed with Shannon Vermaak, communications manager of the Zimbali Estate Management Association, that there is no fee for writing the estate exam. But there are other fees involved:
“Agents will no longer be charged registration fees for the year; however, there will be a charge of R 5000.00 per agreement. Once an agent sells more than four properties in a year, Zimbali will refund the agent R 10 000.00 on their 5th sale, R 10 000.00 on their 6th sale, and any sale seven and over will not be charged for in that year”.
Vermaak explains, “Zimbali Estate charges fees for the recovery of costs, services and IP. These are referred to loosely as administrative costs. This fee is charged on all sales, irrespective of whether an agent is involved in the transaction or not. The refund on the amount back to the agent is an incentive for agents that sell many properties on the estate. Kindly note that the recovery of administrative costs is perfectly legal, enforceable, and legitimate, and we are comfortable in our position in law in this regard”.
Regarding rentals, a lease agreement fee of R 1 200.00 will be charged on all lease agreements.
What are other estates doing?
Many HOAs have similar schemes, and Zimbali is no exception. We’ve previously mentioned Centurion Golf Estate in Pretoria and Ebotse Golf & Country Estate in Benoni, the managers of which are threatening to withhold sellers’ rates clearance certificates unless the estate agent managing the sale pays a penalty fee for being ‘unregistered at the estate’.
It has since come to light that The Wilds Homeowners’ Association, based in Pretoria, offers agents two options – the one being without cost, which allows the agents to operate within the estate (albeit with a number of restrictions that primarily prohibit any marketing, and show days), and a second option of R8 000.00 per sales & rentals agents or R4 000.00 for rental agents only (which allows show days and some marketing at the estate entrance, and in its newsletter for example).
The Woodhill Homeowners’ Association, also in Pretoria, has scrapped their option of a R7 000.00 annual fee for agents. As of 1 March 2024,all transactions at the registration office will be charged R8 00.00 per transaction. This applies to transactions where no agent is involved, meaning the owner will pay the fee.
The good news
This week, Rebosa was notified that the Residential Communities Council (RCC) has asked that the matter of charging agents administration fees and the like be referred to the High Court for a ruling on the lawfulness of charging such fees.
In response to this request, the Simbithi Eco-Estate Homeowners’ Association in Ballito released a communiqué stating that “in an attempt to avoid exposing any of our Property Practitioners to disciplinary action from the PPRA, without prejudice, is suspending the practice of charging such fees pending the decision of the court or other resolution on this matter”.
“It is our sincere hope that other estates will follow Simbithi’s lead in this matter and stop effectively forcing agents to break the law in order to work within these estates”, says Jan le Roux, CEO of Rebosa.
