Estate Agency Affairs Board 2014/15 -2016/17 ANNUAL PERFORMANCE PLAN

1. Estate Agency Affairs Board 2014/15 -2016/17 ANNUAL PERFORMANCE PLAN

2. MANDATE • Primary Mandate of EAAB • Regulate, maintain and promote the standard of conduct of estate agents having due regard to the public interest; • Issue fidelity fund certificates to qualifying applicants; • Prescribe the standard of training of estate agents; • Investigate complaints against estate agents and institute disciplinary proceedings against offending estate agents where required; and • Manage and control the Estate Agents Fidelity Fund. • Secondary mandate • The EAAB is the Supervisory Body of the estate agency profession pursuant to the Financial Intelligence Centre Act and is obliged to take all steps required to prevent; alternatively, identify and report on, anti-money laundering and terrorist financing activities • Expanded Mandate • Title deed restoration project; • Transformation of the Real Estate Sector;

3. BOARD OF DIRECTORS ORGANIZATION STRUCTURE CHIEF EXECUTIVE OFFICER RISK & STRATEGY COMPANY SECRETARY INDUSTRY TRANSFORMATION LEGAL TECHNICAL ANALYST CHIEF FINANCIAL OFFICER (Executive Manager Corporate Services) EXECUTIVE: COMPLIANCE EXECUTIVE: BUSINESS OPERATIONS EXECUTIVE: INSPECTIONS EXECUTIVE: EDUCATION & TRAINING CLAIMS DEPARTMENT REGIONAL INSPECTORS EDUCATION AND TRAINING WESTERN CAPE BRANCH DISCIPLINIARY LITIGATION & RECOVERIES FINANCE DEPARTMENT PROFESSIONAL BODY KWA-ZULU NATAL BRANCH HUMAN RESOURCES AUDIT COMPLIANCE DEPARTMENT CONSUMER EDUCATION TITLE DEEDS RESTORATION PROJECT INFORMATION TECHNOLOGY REGISTRATIONS DEPARTMENT TRANSACTIONAL SUPPORT FOR SUBSIDY MARKET CUSTOMER RELATIONS MARKETING & PUBLICATIONS

4. FOCUS ON TRANSFORMATION OF THE REAL ESTATE SECTOR The EAAB is in the process of rolling-out the ‘One Learner - One Estate Agency’ Programme that will introduce approximately 10 000 new Interns over a three year period; Funding will be received from both public and private sector partners; Increase the Transformation target group Licenses;

5. PROGRAMMES AND SUB-PROGRAMMES

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12. FUNDING SOURCES • Our sources of funding • Levies paid by estate agents; • Examination fees; • Income generated from selling study guides; • Management fee charged for managing and controlling Fidelity Fund; • Fee charged for CPD training; • Interest on investments of surplus funds

13. BUDGET 2014/15

14. TRENDS • Income • FFC renewals fee to increase by 40% except for interns to support transformation • FFC new registration fee to increase by 40% except for interns to support transformation • Income from exams to increase as examination deadline come closer; • Interest income to remain relatively constant; • Management fee to remain relatively constant; • Expenses • Admin cost to increase slightly due to inflation; • Staff costs to increase significantly due to establishment of regional centers and rollout of title deeds restoration project;

15. BUDGET 2014/15

16. TRENDS • Financial Position • Current ration of over 4:1 in the medium term • Solvency ration of over less than 27%

17. BUDGET 2014/15

18. CHALLENGES (Financial) • Income streams remain depressed to adequately fund the enhanced regulatory machinery and transformation initiatives; • Increased legal costs and curatorship resulting from unscrupulous activities of estate agents;

19. STRATEGIES TO ADRESS CHALLENGES • Legislative reforms • Professionalisation of real estate sector • Strategic partnerships with Conveyancers, Deeds Office, SARS, • Hawks, etc.

20. THANK YOU Draft and Confidential