Estate Agency Affairs Board 2014/ /17 ANNUAL PERFORMANCE PLAN

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; MANDATE

DISCIPLINIARY LITIGATION & RECOVERIES CLAIMS DEPARTMENT REGIONAL INSPECTORS REGISTRATIONS DEPARTMENT EDUCATION AND TRAINING PROFESSIONAL BODY WESTERN CAPE BRANCH KWA-ZULU NATAL BRANCH AUDIT COMPLIANCE DEPARTMENT ORGANIZATION STRUCTURE FINANCE DEPARTMENT HUMAN RESOURCES INFORMATION TECHNOLOGY CUSTOMER RELATIONS TITLE DEEDS RESTORATION PROJECT CONSUMER EDUCATION TRANSACTIONAL SUPPORT FOR SUBSIDY MARKET MARKETING & PUBLICATIONS

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 new Interns over a three year period; Funding will be received from both public and private sector partners; Increase the Transformation target group Licenses;

PROGRAMMES AND SUB-PROGRAMMES PROGRAMMESSUB-PROGRAMMES Elimination of Title Deeds backlogResearch Pre-94 stock Post-94 stock ComplianceDisciplinary process Inspections Registrations Fidelity FundClaims processed against the Fidelity Fund Interest received from Estate Agents trust accounts Education and TrainingStakeholder awareness Transaction research in Affordability and subsidised market Professional Designation Examination AdministrationCorporate Governance & Compliance Human Resources ICT Governance Customer services

KEY PERFORMANCE ANNUAL TARGETS – ProgrammeSub Programme Performance Indicator Baseline2014/152015/162016/17 Elimination of Title deeds backlog Pre 1994 backlog % decrease in the title deeds backlog pre – % title deeds backlog pre- 94 n/a 25% decrease in title deeds backlog in pre-94 stock 75% decrease in title deeds backlog in pre-94 stock Post 1994 backlog % decrease in the title deeds backlog post % title deeds backlog post-94 n/a 10% decrease in title deeds backlog in post-94 stock 25% decrease in title deeds backlog in post-94 stock Research Number of report on scoping exercise N/A 1 report-- Compliance Disciplinary processes % increase of complaints resolved within 6 months 65% of complaints are resolved within 6 months 5% increase on baseline 5% increase on previous period % increase of cases for prosecution opened and finalised within 6 months 65% of complaints are resolved within 6 months 5% increase on baseline 5% increase on previous period

KEY PERFORMANCE ANNUAL TARGETS – ProgrammeSub Programme Performance Indicator Baseline2014/152015/162016/17 ComplianceInspections Number of estate agents inspected 800 Estate Agencies inspected 1452 Estate Agencies inspected 1742 Estate Agencies inspected 1916 Estate Agencies inspected Registrations % increase on issued certificates (FFC) to new registered and compliant estate agents within 21 days 75% of FFC issued to compliant new registered estate agents issued within 21 days 5% increase on the baseline. 5% increase on previous period. % increase on renewal certificates (FFC) of compliant estate agents within 5 days 90% of FFC issued to compliant current registered estate agents issued within 21 days 2% increase on the baseline. 2% increase on previous period.

KEY PERFORMANCE ANNUAL TARGETS – ProgrammeSub Programme Performance Indicator Baseline2014/152015/162016/17 Fidelity Fund Claims processed against the Fidelity Fund Percentage increase in claims finalised for payments within 6 months 30% of claims are finalised within 6 months 10% increase on baseline Interest received from Estate Agents trust accounts % increase in interest from estate agency trust accounts collected within 30 days of due dates 30% of interest from estate agency trust account collected within 30 days 10% increase on baseline

KEY PERFORMANCE ANNUAL TARGETS – ProgrammeSub ProgrammePerformance IndicatorBaseline2014/152015/162016/17 Education & TrainingStakeholder awareness Number of consumer awareness campaigns 13 consumer awareness campaigns performed 14 consumer awareness campaigns performed 16 consumer awareness campaigns performed 20 consumer awareness campaigns performed % increase in the implementation of consumer education programmes in the affordable and subsidy housing market plan 0N/A 25% implementatio n project plan 50% implementatio n of project plan Number of consumer education project implementation plan document completed N/A 1 Number of Estate Agents capacity building campaigns performed 22 Estate Agents capacity building campaigns performed 16 Estate Agents capacity building campaigns performed Transaction research in Affordability and subsidised market Number of transactional support project implementation plan document completed N/A 1

KEY PERFORMANCE ANNUAL TARGETS – ProgrammeSub Programme Performance Indicator Baseline2014/152015/162016/17 Education and Training Transaction research in Affordability and subsidised market Percentage increase in the implementation of transactional support projects in the affordable and subsidy housing market plan N/A 25% implementati on project plan 50% implementation of project plan Professional Designation Examination Percentage in NQF level 4 & 5 candidates enrolled and completed PDE receiving results 90% of NQF Level 4 & 5 candidates enrolled and completed PDE receiving results 100% NQF Level 4 & 5 candidates enrolled and completed PDE receiving results

KEY PERFORMANCE ANNUAL TARGETS – ProgrammeSub Programme Performance Indicator Baseline2014/152015/162016/17 Administration Corporate Governance & Compliance Percentage increase in resolution of audit findings raised within the agreed turnaround time 60% of the audit findings raised were resolved within the agreed turnaround time 30% increase from baseline. 10% increase from previous period. 0% increase from previous period. Human Resources Percentage decrease in vacancy rate. 20% vacancy rate 5% decrease in vacancy rate from baseline 5% decrease in vacancy rate from previous period ICT Environment Percentage increase in the implementation of ICT Strategy. 80% implementation of ICT Strategy. 5% increase from baseline 5% increase from previous period Customer services Percentage increase of queries received from stakeholder and resolved within 48 hours 85% of queries received from stakeholders and resolved within 48 hours 5% increase from baseline 5% increase from previous period

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 FUNDING SOURCES

BUDGET 2014/15

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; TRENDS

BUDGET 2014/15

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

BUDGET 2014/15

 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; CHALLENGES (Financial)

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

Draft and Confidential20 THANK YOU