So you’re a high-achieving real estate agent. You work hard for your commission and you’re tired of paying over a large amount of your earnings to the estate agency firm you work for every time you make a sale.
You want to be your own boss, own your own estate agency firm, and retain your commission for yourself. And possibly, one day, you may even have estate agents working for you and paying over some of their commission to you!
That’s a great ambition to have. Real estate is an exciting profession, but even more so when you are in control of your own agency.
But before you rush off to sign a lease on your new premises, there are a few steps you have to take. The first, and most important of these, is to become a Principal Estate Agent.
The Estate Agents Affairs Board (EAAB) requires that the owner of every estate agency must be a qualified Principal Estate Agency – or Principal Property Practitioner. This means that you must have had some experience in running an estate agency firm and you will have qualified in terms of regulations set by the EAAB and by Services SETA (SSETA).
Let’s start at the beginning and track the route every prospective real estate agent must take en route to owning his or her own estate agency firm.
The first step – for every new entrant to the profession regardless of their background or previous qualifications – is to join an estate agency firm, obtain a fidelity fund certificate (FFC), and complete a 12-month internship. During this 12-month period, the intern estate agent collects information and completes a portfolio of evidence (PoE) which must be lodged with the EAAB. You can enrol in our online Intern PoE logbook course directly on our website right away.
If you have already been in the industry for a few years, you will also have to produce a PoE for the Board, clearly showing evidence of at least a year in the field before you can become a full status estate agent.
The EAAB requires all intern agents complete their studies to become full status estate agents within two years from the time they are issued with their Fidelity Fund Certificate from the Board.
To become a full status estate agent, you must complete the Further Education Training: National Qualification Forum Level 4 Real Estate (NQF4) qualification, and then write your EAAB Professional Designated Exam level 4 (PDE4). All of these courses are available on our website and can be completed from the comfort of your home or office via an internet enabled mobile or computer device.
At PropAcademy, we strongly recommend that you start your NQF4 once you have been in the business for three months – while you are still completing your intern logbook PoE.
That’s because your NQF4 will take six-and-a-half months to complete. Then, once it’s submitted to SSETA (PropAcademy can assist you with this), it will take approximately one year before you are issued with a competency certificate.
Only once you have this can you can register with the EAAB to write your PDE4 to have your status changed from intern agent to full status agent – and you’ll be entitled to use the letters PPRE (Property Practitioner Real Estate) in your advertising material.
What if you have a degree or qualification which includes you having passed subjects that are directly related to the real estate industry? The EAAB makes provision for Recognition of Prior Learning (RPL) so it’s possible that you may be exempt from writing the NQF4 qualification. An exemption matrix is available on the EAAB website.
Recognition of Prior Learning also relates to estate agents who have been estate agents since 2008 with no break in service and wrote the old Estate Agents Exam during that period.
So now you’ve completed your NQF4 (or obtained exemption) and your PDF4 qualification. You’re a full status estate agent. Your next step is to go on and achieve Principal Estate Agent status.
The EAAB requires you to have at least two years’ hands-on management of running a business, or to have been involved in the running of your employer’s estate agency firm. In addition, you will have to obtain an NQF5 qualification and pass your PDE5 exam.
Your NQF5 can be completed in six months but your work will then have to go through the normal SSETA channels before you can be issued with a certificate of competency.
Once that is done and you have your certificate, you will have to register with the EAAB to write your PDE5 and voilà, you will now be a Principal Estate Agents (soon to be known as a Principal Property Practitioner).
And NOW you can register and run your own estate agency business.
There are many regulations that must be adhered to in running your own estate agency. These are set out in the Estate Agents Affairs Act as well as the Code of Conduct and Ethics. PropAcademy can help to guide you through the requirements to ensure that when you are audited by the Board you are not penalised for any irregularities.
If you have any questions or would like further assistance with the process of becoming a real estate agency owner, or you’d like to know more about the real estate courses we offer, please feel free to contact us, and we’ll gladly assist you.
Written by Janet Alexander, CEO, PropAcademy