Definition of a Property Practitioner
A Property Practitioner is defined as someone (a person or a firm) who:
- Buys or sells, lets or hires, or publicly exhibits.
- Immovable property, or
- A business undertaking (commercial or industrial).
- Negotiates or facilitates any of the above.
- Canvasses or offers to canvass a seller, purchaser, landlord, or tenant.
- Collects monies payable on account of a lease (e.g. rental).
- Collects monies payable as commission from buyers, sellers, landlords, or tenants.
Categories of Property Practitioners
There are 3 categories of Property Practitioners:
- Principal Property Practitioners, who are the heads of property agency firms.
- Non-Principal Property Practitioners, who work in a principal’s firm and are deemed to be qualified.
- Intern Property Practitioners who also work in a principal’s firm and still have to qualify.
Registrations
By law (the Property Practitioners Act, 2019), every Property Practitioner (including an intern) must be registered with the Property Practitioners Regulatory Authority (PPRA) and take out an annual Fidelity Fund Certificate (FFC), which is a licence to practise. If you perform any service as a Property Practitioner without a current FFC, you are breaking the law and are not entitled to receive any commission or other payment for that service.
The Property Practitioners Regulatory Authority
The Property Practitioners Regulatory Authority (PPRA)’s primary role is to ensure industry standards.
Education Requirements
In brief, an intern Property Practitioner is required to serve as an intern Property Practitioner, acting under the supervision of a principal Property Practitioner, for a continuous period of 12 to 24 months. During this time, they are required to obtain their NQF4 Real Estate qualification and write the PDE 4 (Professional Designation Examination). Should an intern be exempt from obtaining an NQF4 due to prior qualifications, they are still obligated to serve a minimum internship of 12 months. Only once the PDE exam has been written and passed, will an intern Property Practitioner become a non-principal Property Practitioner.
Any non-principal Property Practitioner wishing to become a principal Property Practitioner and run their own property agency must first obtain their NQF 5 Real Estate certificate and complete the PDE 5 exam, before a principal’s Fidelity Fund Certificate can be issued.
The PPRA Code of Conduct
See the blog on the PPRA Code of Conduct Explained or reference it further in this manual.
The Institute of Property Practitioners of South Africa (IEASA)
The Institute of Property Practitioners of South Africa (IEASA) is an industry organisation whose purpose is to ‘maintain, protect, promote, and co-ordinate the interests of Property Practitioners and its members.’
Practitioner Responsibilities
In brief, your responsibility as a Property Practitioner with Golden Homes will encompass the following:
- Get mandates/listings (stock): Through canvassing, networking, valuations, building a referral network, etc. This is the mainstay of your business!!
- Conclude the sale: Taking offers, presenting offers, negotiating terms, etc.
- Sales service: Bond applications, fulfilment of contractual obligations (deposits, occupation, electrical compliance certificates, etc.), monitoring the transfer journey, etc.
Property Markets
The property markets include:
- Residential sales – i.e. houses, flats, sectional title, clusters, vacant land, etc.
- Commercial sales – i.e. shops, businesses, etc.
- Industrial sales – i.e. factories, warehouses.
- Rental/letting of any of the above.
For all intents and purposes, as a Property Practitioner for Golden Homes, your focus will be on residential sales or residential letting.
Top 10 Money-Producing Tasks in Property Practice:
The following tasks are critical to achieving success in property practice. Ensure that they are planned into your weekly schedule as priority tasks and track that they have been achieved:
- Negotiate offers/sales follow-ups
This is money earned – protect it by ensuring nothing hinders registration.
- Mandates
Keep on top of your mandates – frequent feedback to your seller, price counselling, face-to-face appointments, etc.
- Valuation appointments
Make sure you do these as soon as possible, have your facts on hand – CMAs, area statistics, copies of mandates, boards, etc.
- Canvassing
This is the primary source of your business.
- Lead/client follow-up
Never delay calling your buyers and sellers or delay chasing up on leads.
- Advertising
Website listings, property week ads, etc. Without ads or web listings, you will not generate any enquiries. Ensure you spend enough time writing GOOD ads that will attract buyers, otherwise, they are pointless.
- Appointments & show houses
Ensure all appointments are done timeously.
- Attend open houses
- Referral database
Make contact – send email newsletters, etc.
- Training and coaching sessions
General training, monitoring work performance, etc.
Secondary Tasks (Allocate time monthly) include, but are not limited to:
- Personal branding ideas (flyers, letters, email newsletters, social networking, etc.)
- Strategic planning
- Watch property practice training videos
- Read property-related articles and keep current with economic housing trends
- Obtain CPD points
- Check boards in the marketplace – replace where necessary
- Ensure you have the tools needed to do your job (file with copies of offers & mandates, pre-appointment checklists, boards, poles, cable ties, hammer, flyers, area maps, etc.)
Commission
Do you deserve your fee?
YES! You do!
Cutting your commission is one of the fastest ways to decrease your earnings in property practice. Reasons for cutting commission vary but typically occur because:
- The ‘veiled’ threat from your sellers that the sale will not happen unless the commission charged is lowered – at this point, you must be armed with self-confidence that you can prove the value of your commission.
- Competition ‘forces’ you to reduce your fee – again, be ready to justify your commission by pointing out the extent of your service.
- Financial desperation – you would rather take a “little” bit of something than a “lot” of nothing.
Desperation makes you take overpriced listings and cut commission – be selective. You want 5-star sellers and 5-star purchasers. Some listings are just not worth the trouble!
Remember: the only professional method of achieving your commission is to add perceived value to the transaction.
VALUE = SERVICE – where are the BENEFITS to the Seller?
Value deserves reward – so be good at what you do, and your commission will not be questioned or challenged.
Human Resources
As a Property Practitioner with Golden Homes, you will be required to:
- Sign an employment contract and adhere to the conditions therein.
- Sign acceptance of the commission policy.
- Register with SARS, obtain a tax directive, and submit your returns yearly.
- Sign a copy of our internal code of ethics.
- Sign a copy of our disciplinary policy.
- Attend external listing systems induction courses and sign any agreement concerning their code of conduct and rules.
- Sign a copy of your job description.
- Provide the company with the following documents: Contact details, copy of ID, copy of latest tax clearance certificate, original FFC certificate, etc.
- Sign a copy of the SAGH code of conduct.
Confidentiality
During your time at Golden Homes, you will be given full access to all company information, training material, work ethics, etc. Should you wish to terminate your services with Golden Homes, all information must be returned to the company. No commissions due will be paid out until such time that the company is satisfied that all relevant information has been returned to it.