Editor
Many agents around the country are still being coerced into complicity in undesirable business practices by HOAs in gated estates, with several being fined by the PPRA. We recently reported 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.
We have yet to see any confirmation of this action having been launched.
In the interim, agents wanting to operate within these estates were still faced with breaking the law, with no easy solution within reach. The crux of the matter is that only the HOAs themselves could correct the problem they caused by charging these fees.
Against this backdrop, rays of light are showing the way forward, with several HOAs from around the country voluntarily changing their policies.
(Some) agents now have options
On the 19th of February, the Property Professional reported that the Simbithi Eco-Estate Homeowners’ Association in Ballito was “suspending the practice of charging such fees pending the decision of the High Court or other resolution on this matter”.
Since then, two other estates have amended their policies as well. These estates are The Wilds Club in Pretoria East, Featherbrooke Estate in Krugersdorp, and Zimbali on the KwaZulu Natal North Coast.
The Wilds Security Estate
The Wilds is now offering estate agents two options: one free of charge and the other paying an annual R8,000.00 fee for sales and rental agents or R4,000.00 for rental agents only. Agents choosing the free option are restricted in that they may not host Show Days and may not market themselves at estate events, door-to-door, or via the estate website.
Featherbrooke Estate
Featherbrooke Estate has also elected to go the two-option route, with the first being free of charge (but with limited marketing opportunities) and the second at a charge of R 5000.00 per annum (with marketing in the monthly magazine and on the estate website enabled). Both options make allowances for a ‘for sale’ board posted on the pavement outside the property.
“The fact that these estates are still offering a paid option is interesting and will show in due course if agents want to pay for certain privileges”, explains Jan le Roux, CE of Rebosa, “That said, offering agents a free option allows them to remain in compliance with the Act”.
Zimbali Estate
We had previously reported that agents operating in Zimbali would no longer be charged registration fees for the year; however, there would still be a charge of R 5000.00 per agreement. Once an agent sells more than four properties in a year, Zimbali would 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 that year.
The estate has since amended this policy, which is good news for agents. According to a communique shared by Michelle Larkens,liaison & member facilities manager at Zimabli, ”Considering current PPRA requirements, Zimbali Estate has been obliged to change how we recover costs. While we ensure compliance with legislation, we also need to ensure that expenses related to sales and administrative processes are adequately covered. Effective immediately, these costs will be borne by the purchaser”.
“As an industry, we are delighted to see a well-known estate like Zimbali taking the lead in terms of scrapping agent fees. As Rebosa, we have long said that charging agents fees (whether they be referred to as accreditation, marketing fees or under any other guise) is not only unjust (which other service providers are being charged the same) but also ‘forces agents to be in contravention of the Act. We hope that other estates will follow suit shortly”.
Two steps forward, one step back
Unfortunately, the Woodhill Homeowners Association is sticking to its guns.
The estate has confirmed that its website will “be cleaned of all estate agents on the 1st of March 2024. Agents are allowed to pay for advertising on our platforms and website separately from any other transactions. De Vico and newsletter and display boards at gates will be charged for as per the normal advertising policy and fees”.
“While marketing activities have been separated (which is good), Woodhill still insists on charging an R800.00 fee per transaction at the registration office. If an estate agent is not involved, this cost is payable by the owner. This leads me to believe that the R800.00 is typically payable by the estate agent. This effectively forces agents to operate counter to the Act and is not a viable solution moving forward”, says le Roux.
