Property Management, Property Rentals and Property Financial Services in South Africa

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NAMA Indaba 2013

I had the opportunity to attend the NAMA Indaba in Stellenbosch on the 19th and 20th of September 2013 and would like to provide some feedback on Industry news:

Community Scheme Ombud Service

The Board has been selected and they formed various committees.   They are however waiting for government funding before they can start appointing and training staff.   They are working towards adjudicating the first disputes in March 2014.  They will work on government funding for the first year – only thereafter will they decide on how costs will be covered – possibly implementing a levy for all complexes

Sectional Title Scheme Management Act

No dates were given as to when the Act will come into effect.  Prof Graham Paddock went over the draft Regulations they are working on.   There will possibly be a split between the definition of primary sections (flats/houses) and utility sections (garages/storerooms).   The suggestion will be that owners will only have votes for the primary sections. The regulations will stipulate the following for instance
o Minimum contribution to reserve funds
o Risks to be insured against
o Rules – no more House rules
o Internal dispute resolution procedure
o Code of Conduct for Managing Agents
o Separate bank accounts for each complex

•         They are busy drafting a “Property Practitioners Bill”
Public comment will possibly be requested in October 2013.  It will include a Code of Conduct.  It will distinguish between the different property practitioners – Estate Agents / Managing Agents etc and educational standards will be set for Managing Agents

•         NAMA is working on a Quality Assurance program – based on ACMO2000 from Canada – that will cover the following aspects
o   Qualification & responsibilities of Managing Agents
o   Management Agreements
o   Monthly reports given by Managing Agents
o   Info to new Directors / Trustees
o   Suppliers relationship declarations
o   Accounting – admin procedures, insurance, accounting of business account, communication, filing and archiving, payroll
o   HR policy
o   Field operations – job descriptions for Caretakers etc. Training, building operations manual
o   Measurement and improvement – document control, non conformance, corrective actions, preventative actions
o   Management of trust accounts and trust funds

Nama Indaba

•         The EAAB reported the following:
Currently the EAAB only have jurisdiction over Managing Agents where trust money is
Involved they have no jurisdiction over the conduct of Managing Agents.  Managing Agents that don’t deal with clients’ monies fall outside the EAAB jurisdiction.
Ito training they currently have NQF 4 and NQF 5 – and their relevant PDE exams (currently focused on Estate Agents). The Continuing Professional Development program will be rolled out very soon
  CPD providers will have to be accredited with the EAAB and the Services SETA
  Managing Agents will have to attend courses / workshops / seminars and accumulate a specified number of CPD points every year

The current Estate Agency Affairs Act is not sufficient for taken disciplinary action against Agents
  Maximum fine is only R25 000
  SAPS is not interested even though it is for instance a criminal offence to operate without a Fidelity Fund Certificate

The EAAB has the right to do inspections on the Agents/Agencies – this used to be outsourced and inefficient – is now done in-house and their target is 100 inspections per month.

Most claims against the Fidelity Fund is about Managing Agents and Trust funds.

They are busy working on a new Act that will differentiate between Estate Agents and Managing Agents.

 

– Post by Karien Coetzee, Trafalgar’s National Property Management Consultant

 

 

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