IEASA National - News

Many Opportunities in Townships Property Market - Institute   Article Date :4 Aug 2006 There are many opportunities for estate agents in townships such as Khayelitsha, says Thabo Manganyi, transformation director of the Institute of Estate Agents (IEA) in the Western Cape. But, he says, they need to be professional, to be able to deal with unusual challenges, and to be willing to educate consumers about buying and selling property. They must also be licensed, and comply with all the legal requirements that apply to estate agents throughout the country. "The property market in the townships is doing very well," says Manganyi. "In Khayelitsha alone there have been an average of six property transfers a week over the past eighteen months, and there have also been many other sales which have not been recorded in the Deeds Office because of consumer and estate agent ignorance. Although property prices are relatively low, there is enough volume to enable a hard-working estate agent to earn a good commission income, if he or she is prepared to do what it takes." Manganyi, like other property industry leaders, believes in the importance of thorough training, and continuous professional development. At present, there is only one official qualification, namely the Estate Agency Affairs Board exam, which is voluntary. However, the Board has indicated that new qualifications will soon be introduced, and that they will be compulsory. "My organisation, the Institute of Estate Agents, is an acknowledged training provider," says Manganyi. "We not only train estate agents for the Board exam, but we run many other courses throughout the year, and offer regular seminars and workshops on specific topics. The Institute has been in operation for nearly seventy years, and we have some of the country's top trainers presenting our courses." Manganyi believes that a new mindset is needed in the township property market. "Consumer and estate agent ignorance is a major problem, and creates many problems. People buy and sell properties without attending to the legalities such as contracts and registration of transfer, which means that many people aren't the legal owners of the houses which they believe they own. And many township estate agents are not only untrained but unlicensed, which means that they're operating illegally." In Manganyi's view, the younger generation will play the leading role in transformation. "There's a great need to attract young entrepreneurs into the industry - people who want to make a difference, and can find solutions to problems. They can specialise, if they want to. While residential sales is always the largest market sector, there's also scope for specialist letting agents and property managers, and once sectional title becomes established, there'll be a need for professional managing agents too." The large number of unlicensed estate agents in the townships is a big problem. For the past thirty years, it has been the law that every estate agency firm and every individual estate agent must register with the Estate Agency Affairs Board, and renew their registration annually. It's an offence to operate as an estate agent without being registered, and an unregistered agent is not allowed to be paid for his or her services. "Yet," says Manganyi, "there are agents who have been operating illegally for twenty years, and the Board ignores the problem. So, apparently, do the people who pay the commissions to these agents. The Board says it's going to employ inspectors to track down unlicensed agents, and we hope that it does so soon." Registration is not difficult or expensive. An agent who hasn't passed the Board exam would register as a candidate estate agent (which costs R530) and would have to work in an existing, registered, estate agency firm for a year. At any time after that, if the agent wants to operate independently, he/she can upgrade registration to principal (which costs R1270). An agent who has passed the Board exam (which costs R400 plus the cost of a training course) can register as a principal immediately. An independent estate agent must also operate a trust account, and have it audited annually. While registration with the Board is compulsory, membership of the Institute is voluntary. Manganyi says the IEA offers many benefits to members, including training and professional support, and networking opportunities. Licensed township estate agents can improve their skills and their businesses by joining the IEA. Enquiries about licensing/registration: Estate Agency Affairs Board (tel 011 731 5600). Enquiries about training: Institute of Estate Agents (tel 021 531 3180). CLICK HERE TO RETURN TO THE MAIN NEWS PAGE