The Requirements to Start a Real Estate Agency in South Africa

What do I need to do to become a qualified Real Estate Agent in South Africa?

Here are the  process involved in becoming a qualified real estate agent in South Africa.

• Find Employment at an Estate Agency

At this stage you will be regarded as an intern estate agent and will begin your 12 month internship.

• Register with the Estate Agency Affairs Board (EAAB)

Register as an intern agent with the EAAB in order to receive a Fidelity Fund Certificate (FFC) by providing the following:

• Completed application form.
• Certified copy of a valid South African ID book OR a certified copy of a valid passport, and valid work permit, if not a South African.
• Payment or proof of payment required for this registration.
• Official Letter of employment signed by the Principal of your firm.

Your FFC certificate must be renewed annually, if remaining in the industry.

• Complete the 12 Month Internship

Internship is an obligatory continuous period of 12 months from the date of the first issue of your  FFC. During this period, you will gain relevant practical and theoretical knowledge of the industry under the mentorship of the principal/coach/supervisor assigned to assist you. You will undergo training on, and gain practical knowledge of, the following: Industry, Law, Finance, Marketing, Management, Administration, and Paralegal.

Intern estate agents must complete and maintain 2 files – a Logbook and a Portfolio of Evidence (PoE).

The Logbook will contain completed activities which are signed-off by the mentor.

The Portfolio of Evidence (PoE) is aligned with the prescribed logbook activities and will contain all the “naturally occurring workplace evidence generated over the twelve month internship period” and will reflect “the workplace learning experience of the intern estate agent” such as:

• Listings completed
• Show houses arranged with registers
• Mandates negotiated
• Sales/lease contracts concluded
• Property values established
• Agendas for and meetings/training attended
• Proof of time management and time/log sheets

At the end of your 12 month internship, you must submit the PoE and Intern Logbook to the EAAB for assessment.

• Complete NQF 4

The intern estate agent must also:

• complete their FETC (the Further Education and Training Certificate) in Real Estate at level NQF 4 through an accredited provider and 
• receive a certificate of competence from Services SETA, the Services Sector Education and Training Authority (SSETA).

This NQF4 qualification has 150 credits, which equates to approximately 1 500 hours of study needed to complete the course.

• Complete the PDE4 (Professional Designation Examination)

Do I need to be registered to become a qualified real Estate agent in South Africa?

Yes. There are several steps in this process each of which must be completed within a specific but limited time-frame and must meet with the educational requirements stipulated by the applicable regulatory body. The regulatory body for estate agents in South Africa, the Estate Agency Affairs Board (EAAB)  ensures that all persons carrying out the activities of an estate agent as a service to the public are registered with the EAAB. A fidelity fund certificate, which is to be renewed each year, is issued as evidence of such registration and confirmation that such person is legally entitled to carry out the activities of an estate agent. You can visit   (https://www.eaab.org.za/)  for more information.

How much does it cost to start a property business in South Africa?

In South Africa, the average cost of a new Just Property franchise is R60,000 to R200 000, depending on the size and location of the store. Franchisees must also pay a monthly marketing and advertising fee of 2% and a royalty fee of 6%.