From CompliNEWS | Financial Service Intelligence Watch

Real estate agents targeted for BEE compliance

More than 40% of the country’s real estate agencies and nearly half of the 40 000 registered real estate agents’ operations could be disrupted due to the government’s latest BEE requirements that it is enforcing on the private sector. City Press reports that real estate agents and agencies will now have to comply with level 8 BEE scores to obtain or renew fidelity fund certificates. Without these certificates, the agents cannot legally operate. Piet le Roux, CEO of Sakeliga, said the Property Practitioners Regulatory Authority (PPRA) suddenly introduced the requirement. Sakeliga plans to fight it in court and invites businesses affected to join the legal action. The required score is unattainable for many small businesses because it amounts to more than 50% black ownership. Sakeliga describes the PPRA’s decision as illegal, unconstitutional and harmful to the economy. Thato Ramaili, CEO of the PPRA, recently said that of the more than 40 000 real estate agents registered on the PPRA’s database, just over 12 000 are previously disadvantaged individuals. According to her, it is the PPRA’s duty to ensure it implements the legislation and carries out its mandate to transform the real estate industry.

Read the Full City Press report here