The Estate Agency Affairs Board has announced that non-executive directors of estate agencies need no longer comply with the educational requirements applicable to estate agents. Until now, all directors of limited companies trading as estate agents had to comply with stringent requirements, including an internship and NQF qualifications.
To many directors, especially those who have nothing to do with the practice of being an agent, these prerequisites were unnecessarily problematic. It also inhibited investors: business people inclined to invest in real estate companies could do so as shareholders but not serve on boards of their own companies. Transformation was also subdued; black entrepreneurs/investors had to find other opportunities or comply with all the educational requirements if they wanted to invest in real estate companies and hold directors’ positions.
According to the Real Estate Business Owners of South Africa (REBOSA), this move is a breakthrough for business and transformation. There is still an application and paperwork involved: directors have to apply and pay R2,500 to have the application evaluated.
Says Jan le Roux, chief executive of REBOSA: “This should apply to any directors not involved in selling real estate or supervising agents doing so. Abolition of this requirement could open the door for highly qualified individuals to become involved in the industry.”
