Exposed: Property industry power struggle shocker

The Services SETA CEO, apparently angered by the Estate Agency Affairs Board's failure to follow business correspondence protocol and mudslinging, has withdrawn tens of millions of rands' worth of funding from a programme to professionalise South Africa's estate agents.

Realestateweb reporter Denise Mhlanga has been investigating the ugly battle that has been unfolding between two powerful organizations in the country's residential property sector and uncovered an ugly chain of correspondence between the two (see "related documents" at the end of this article).

The regulatory Estate Agency Affairs Board and the Services Sector Education Training Authority (SSETA) are fighting over the new estate agents education dispensation and who has the legal right to accredit training providers for the Recognition of Prior Learning (RPL).

It  seems the EAAB holds the view that only the board and not SSETA  has the final vetting rights whereas SSETA claim this prerogative for themselves on the strength of their South African Qualifications Authority ( SAQA) mandate, explains Ivan Neethling, chairman of the Institute of Estate Agents in the Western Cape.

The EAAB is also resisting SSETA's demand that their prescribed text book which costs R490 per copy should be bought by all trainees when training material is already available to them through the training providers, he says.

The standoff between the EAAB and SSETA could be a serious blow for many individuals in the residential property industry and has raised the question about the implementation of the NQF Level 4 and NQF Level 5 qualifications that will be required of estate agents from 2011 onwards.

According to Neethling, the accreditation issue could have serious consequences and could result in 3 000 agents who have already completed their RPL training with SSETA finding that their qualifications are not recognised by the EAAB as their training providers had not had the EAAB accreditation.

"Equally serious, the feud has now caused the SSETA to withdraw all funding for all RPL programmes and learnerships," said Neethling in a written statement.

Without this funding, estate agents could have to pay between R9 000 and R12 000 to re-qualify under the new regulations.   The SSETA has already spent about R70m in assisting with RPL compliance.

In an article published recently, Services SETA said it would launch a class action legal case against the EAAB on behalf of all affected persons. Realestateweb.co.za could not get any comment from the EAAB or Services SETA.

When the working relationship between the two bodies was going on well, SSETA sent a letter to the real estate industry warning them of individuals operating as training providers and RPL assessment centres. The letter briefly explained the SSETA Bursaries for estate agents and the RPL process. Click here to read the letter.

In a another letter sent this year by SSETA to the real estate industry, it is clear that there is no love lost between the two bodies about who wields the power over training providers for estate agents to meet the requirements of the RPL process.

"It appears that there is huge amount of consternation circulating in relation to the Estate Agency Affairs Board and the validity of the NQF 4 level qualification offered by Services SETA accredited training providers. As long as you have obtained your qualification from a training provider accredited by the Services SETA, that qualification is a SAQA approved national qualification at NQF Level 4. No other organisation including any statutory body such as the Estate Agency Affairs Board has any legal right to cast aspersions to accredit training providers," wrote Ivor Blumenthal, Chief executive officer of SETA.

Blumenthal wrote that the information issued by the EAAB on qualifications should be ignored as it is misleading, and he suggested that the EAAB should rather devotes its considerable resources attending to its shortcomings of its core business, including the issuing of fidelity funds certificates.

Blumenthal further said all indications from the EAAB that qualifications legitimately obtained from the Services SETA accredited training providers will not satisfy DTI regulations for EAAB registration should be ignored. Read the letter here.

However, Realestateweb.co.za is in possession of a 13 page letter written in May and addressed to Blumenthal following the article published recently in which the board tries to explain its position.

The board states that it was never its intention to interfere in or undermine the activities of the Services SETA adding that the SETA is in any event, obliged to undertake those functions and activities in accordance with the Skills Development Act, the board wrote in a letter addressed to Services SETA Property Chamber.

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Who is right? The Estate Agency Affairs Board or the Services SETA. Read the letters, then tell us below this article what you think about the ugly battle that has erupted.

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Comments

 

responses to this article

EAAB vs SSETA This is not a misunderstanding, this is poor planning on both parts. Does the EAAB want to raise the bar on standards because they should. A cram course over 4/5 days done by an instructor that was never in industry or possibly not even qualified does not . .more count. The training requirements and objectives should have been discussed and agreed upon by both parties before committing to a process that cost R70 milliion. Based on the current process it would be hard to justify charging R9000 - R12000 for a course. This is just another quick fix from an institution that can't even print certificates on time. If you have 20 agents doing a course that's collectively worth R200 000. What is the money being spent on? Books? The untrained trainer? Barrier to entry!!!??? No has the brass to clean house, right now is perfect, it's nice and quiet. . .less by X Agent on July 01 2009, 03:12 Find this comment inappropriate? Report it

Estate agents need SERIOUS training For the majority of people, buying property is the single most biggest and important financial decision they make. Therefore estate agents who have no financial acumen must not be allowed to offer advice without first being extensively trained to do so. . .more One only has to look at the financial services sector where members have to registered with the FSB and undergo large amounts of training to offer even the most simple advice on small investments like unit trusts, money market accounts etc. SETA is more suited to the role of providing the proper training and should be the body that regulates and educates real estate agents. The EAAB is a sorry excuse for a regulating authority and must step aside. On the other hand, most estate agents have difficulty in grasping basic English let alone the ins and outs of investing in property so its going to be a tough ride for them. . .less by WTF on July 01 2009, 04:59 Find this comment inappropriate? Report it

Estate agents aren't there for advice They are there to match buyer and seller. The beauty of property is that it is easy to understand and transparent. The buyer must think carefully about his or her own important financial decision. You need training for financial advisers because their . .more products are convolued, opaque and designed to rip everyone off. Estate agents are like car salesmen: they should be there to show off the goods but they don't need to be "extensively trained". Get shot of RPL. It's a waste of time, money and seems to be a gravy train for the RPL training brigade. . .less by Fanny Pancakes on July 01 2009, 07:21 Find this comment inappropriate? Report it

EAAB vs SETA The EAAB must stand it's ground, all and sundry are now registered under SETA as "accredited trainers" - "ACCREDITED" by whom? SETA?!!!!! All estate agents should have to study and write "proper" exams through an established University or Technikon . .more not RPL "assessed" if Estate Agents want to be seen as Professional bodies. . .less by Concerned Agent on July 01 2009, 08:30 Find this comment inappropriate? Report it

next thing, hookers will require training for 2010 accreditation - wotta farce! hou my dop by PietPompies on July 01 2009, 09:26 Find this comment inappropriate? Report it

Hogus bogus training Can it get any more pathetic than this. Are any one of these two organizations linked to th SABC Board. The next we'll hear ,agents deadline from 2011 has been moved out. Mark my words, if this does not get resolved in a week or two, from deadline to . .more flatline . .less by pokko on July 01 2009, 09:44 Find this comment inappropriate? Report it

Keep your focus Correction Mr. Neethling your statement "The EAAB is also resisting SSETA's demand that their prescribed text book which costs R490 per copy should be bought by all trainees when training material is already available to them through the training . .more providers, he says" Should read the other way around. It is time for the Real Estate Industry to realise that if they want to reach their objective - becoming a Profession - they need to stand together and take a leap towards establishing a new Professional Body to represent their Industry! The Industry is defragmented and unregulated. It is in no way an attractive career option! A qualification is now a requirement - get one and get on with it! Pay for it like all others who study a profession - can't see why taxpayers need to fork out this kind of money if you are not prepared to stand up for yourself - how sustainable are your employment models? Change is never easy! BUT it is time to change! . .less by Keep to the facts on July 01 2009, 22:46 Find this comment inappropriate? Report it

LONG OVERDUE The proper strict training of SA Estate Agents is long overdue, given that these largely unemployable incompetants handle many millions of Rands of workers most vital savings. A properly adequate requirement will eradicate at least 75% of existing Agents. . .more Very many will have no hope of passing strictly controlled examinations. Anyone who has had any interaction with the Industry will vouch for that. Estate Agency Principals & "Managers" will also suffer acute attrition across the board when they have to face the same requirments PLUS assessment of management abilities. Again, ask anyone who has ever interfaced with them. The EAAB has been an unmitigated disaster over the past 6 years or so since tranformation. What happenned to the fraud & misappropriation charges against them some years back? . .less by CICERO on July 06 2009, 16:21 Find this comment inappropriate? Report it

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