Call for equitable estate agent access in residential estates

Limits on the number of agents allowed to market property in housing estates should be scrapped.

This recommendation forms part of the best practice guidelines drawn up by the Institute of Estate Agents (IEASA), the body representing the interests of South Africa’s estate agent industry, and the Association of Residential Communities (ARC), the body representing the residential community industry.

The establishment of the guidelines follows months of talks between IEASA and ARC to resolve dissatisfaction with the widespread practice of homeowners’ associations (HOAs) in housing estates to “accredit” selected agents to exclusively market property in such estates.

The practice had raised concerns in estate agency circles on the grounds that consumers were not at liberty to choose their own marketing agents. Questions were also raised about the sometimes exorbitant annual fees that “accredited” agents or agencies had to pay the HOAs for the privilege of marketing properties in such estates, as well as about the wrong use of the term “accreditation” in the case of qualified estate agents.

Dr Willie Marais, immediate past president of IEASA, says the best practice guidelines for both HOAs and agents or managing agents who work or would like to work in such estates are now complete.

“Our proposals include a recommendation that HOAs consider the impact of such estate agent approval practices on home values within their estates,” he says. “Owners in such estates have the right to expect that any practices implemented by their HOAs should not penalise them or impact negatively on their property values, while at the same time, the rights of the HOA to implement rules and regulations within the estate need to be considered.”

The guidelines also recommend that no limit is placed on the number of agents who may apply for approval. “In our view,” he says, “the interests of consumers who own property in such estates will be best served if they have access to as wide a choice of marketing agents as possible.

“And we further recommend that any approval fees payable to HOAs should be reasonable and equitable. In a competitive market unreasonable fee levels could limit the pool of agents active in such estates, to the detriment of property owners.

“However, we can identify with HOAs’ aim of ensuring that only qualified agents with the necessary experience and expertise market property in such estates. We therefore suggest that HOAs consider membership of IEASA an important recommendation for approval since IEASA members are accountable in terms of the institute’s professional code of conduct.”

ARC president Jeff Gilmour adds: “Estates that are not yet members of ARC should seriously consider joining the association so that they can benefit from services offered and have direct access to best practice guidelines.”

Issued by the

Institute of Estate Agents of SA

For further information call

IEASA National on

021 531-2074 or visit

www.ieasa.co.za