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Cape town - With only 6% of estate agencies in South Africa owned by blacks, transformation of the industry is vital, Estate Agency Affairs Board (EAAB) chairperson Thami Bolani said on Friday.
Addressing parliament's select committee on trade about problems faced by the EAAB, he said there were 46 000 operating estate agencies in the country and that "only 6% are owned by Africans".
"So, high on the list (of problems) is the issue of transformation."
The EAAB had never had a policy to deal with transformation in the industry, which was worth R500bn a year.
The board was "attempting" to implement a policy within the next three months that would address transformation issues.
The EAAB had appointed a board transformation committee and invited representatives from the National Property Forum and the Property Charter to make submissions.
The EAAB had also entered into negotiations with banks, parastatals and government.
"There will also be involvement of the services Seta and other key role-players and we hope that in the next three months we will be able to produce for the very first time a clear transformation policy that will be implemented vigorously and on which we will report regularly to the South African community," Bolani said.
The EAAB would also focus on educating South Africans about the property industry to draw more black people into it.
Most people did not know how to get into the industry and the board would look at ways of creating awareness.
"We are considering translating some learning material into the major African languages. This is to be achieved before the end of the year."
Other problems the EAAB faced included a lack of clear policy guidelines and strategies around compliance, an increase in the number of people operating without valid Fidelity Fund Certificates, and illegal traders.
There was also an increase in the number of fraudulent claims, poor IT infrastructure, poor customer service and poor working conditions.
Bolani said there were between 5 000 and 10 000 unregistered estate agents in the industry and this had led to an increase in the number of claims submitted by consumers who dealt with them.
The board would develop an amnesty policy to reduce the numbers of unlicensed traders to get unregistered agents to register.
They would be given a period of between three to six months from April to register themselves.
The board would also review the whistle-blower hotline.
"(Because) this has not been working effectively. It has been compromised on a number of occasions."
A name and shame policy would also be implemented in an effort to deal with non-compliant agents.
The board would also develop a transparent policy on inspections and investigations and appoint an in-house inspectorate, Bolani said.
Addressing parliament's select committee on trade about problems faced by the EAAB, he said there were 46 000 operating estate agencies in the country and that "only 6% are owned by Africans".
"So, high on the list (of problems) is the issue of transformation."
The EAAB had never had a policy to deal with transformation in the industry, which was worth R500bn a year.
The board was "attempting" to implement a policy within the next three months that would address transformation issues.
The EAAB had appointed a board transformation committee and invited representatives from the National Property Forum and the Property Charter to make submissions.
The EAAB had also entered into negotiations with banks, parastatals and government.
"There will also be involvement of the services Seta and other key role-players and we hope that in the next three months we will be able to produce for the very first time a clear transformation policy that will be implemented vigorously and on which we will report regularly to the South African community," Bolani said.
The EAAB would also focus on educating South Africans about the property industry to draw more black people into it.
Most people did not know how to get into the industry and the board would look at ways of creating awareness.
"We are considering translating some learning material into the major African languages. This is to be achieved before the end of the year."
Other problems the EAAB faced included a lack of clear policy guidelines and strategies around compliance, an increase in the number of people operating without valid Fidelity Fund Certificates, and illegal traders.
There was also an increase in the number of fraudulent claims, poor IT infrastructure, poor customer service and poor working conditions.
Bolani said there were between 5 000 and 10 000 unregistered estate agents in the industry and this had led to an increase in the number of claims submitted by consumers who dealt with them.
The board would develop an amnesty policy to reduce the numbers of unlicensed traders to get unregistered agents to register.
They would be given a period of between three to six months from April to register themselves.
The board would also review the whistle-blower hotline.
"(Because) this has not been working effectively. It has been compromised on a number of occasions."
A name and shame policy would also be implemented in an effort to deal with non-compliant agents.
The board would also develop a transparent policy on inspections and investigations and appoint an in-house inspectorate, Bolani said.
