1. Estate Agency Affairs Board
STRATEGIC PLAN ( ) and APP( )
Portfolio Committee Presentation

2. PRESENTATION OUTLINE STRATEGIC OVERVIEW STRATEGIC OUTOME GOALS
2017/18 PRIORITIES
KEY PERFORMANCE ANNUAL TARGETS
EAAB BUDGET
EAFF BUDGET

3. STRATEGIC OVERVIEW -Vision
EAAB vision is that of a transformed, professional and well-regulated real estate sector in a spatially integrated society.

4. STRATEGIC OVERVIEW - Mission
Protect - Through education, awareness building and information sharing, we strive to protect the interests and dignity of the property consumer public and their security of tenure.

5. STRATEGIC OVERVIEW - Mission
Mission (Cont’d)
Regulate - We regulate the property profession by establishing norms and standards, educating, licensing, the enforcement of regulations and standards for industry role-players and the administration of the fidelity funds.
Transform - As the leaders of the sector, we drive the transformation of the property market to facilitate equitable economic growth through broad participation.

6. STRATEGIC OVERVIEW - Values
The following values will underscore the Board’s behaviour as it strives to achieve the ideals encapsulated in its vision and mission, namely:
Integrity - We pledge adherence to the highest moral principles and professional standards through mutual respect amongst us and between us, our shareholder and our stakeholders.
Excellence - We commit to, at all times acting professionally, delivering on our mandate and exceeding the expectations of our shareholder and all the stakeholders we serve.
Communication - We accept the responsibility of enabling and facilitating a free flow of information between ourselves and all our shareholders and stakeholders, especially the public, and to respecting their views at all times.

7. STRATEGIC OVERVIEW - Values
Transparency - We declare for all to know that, as a matter of principle, our interactions with all our shareholder and stakeholders, will be conducted in an open fashion and that we will be accountable for our actions.

8. STRATEGIC OVERVIEW - Legislative Mandate
The following constitutional court decision had a direct impact on the validity of Section 32A of the Estate Agency Affairs Act No.112 of 1976 ( the Act), as the court held that the inspection powers conferred on the Board by Section 32A was unconstitutional. The constitutional invalidity was suspended until 26 February 2016 to enable an amendment to the Act to bring into line with the constitution. Since 27 February 2016, the Board’s inspection powers have been severely circumscribed and this has compromised the Board’s legal powers to enforce regulatory mechanisms and to prevent money- laundering and corruption in the property industry. It is envisaged that Property Practitioner’s Bill will close this loophole.

9. STRATEGIC OVERVIEW - Legislative Mandate
In the meantime, the EAAB will in the interim implement a wide range measures to monitor compliance such as introduction of online self- assessments and evaluations, strengthening of the EAAB ‘enforcement capacity to enforce the provision of the Act and strengthening audit compliance process. The EAAB has further established strategic relationships with other law enforcement agencies such as SAPS, FIC, IRBA, and NPA to assist with investigation criminal offence as well as subsequent prosecution where applicable.

10. STRATEGIC OVERVIEW - Primary Mandate
The primary mandate of the EAAB in respect of the Estate Agency Affairs Act is to:
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 education and 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.

11. STRATEGIC OVERVIEW -Secondary Mandate
The EAAB is the Supervisory Body of the estate agency profession pursuant to the Financia 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 in the Estate Agents sector.

12. STRATEGIC OVERVIEW - MTSF
The expanded mandate of EAAB in respect of National Development Plan Vision and Trajectory is reflected in Outcome Number 8 which refers to Sustainable and Improved Quality of Household Life. In respect of MTSF sub- outcome 2, Department of Human settlement is required to ensure a sustainable residential property market. Based on this strategic outcome, EAAB is responsible for the following:
Intensify homeownership induction programmes for affordable housing market.
Establish transactional support for affordable housing market.
Monitor and reporting transactions in the secondary housing subsidy market.

13. STRATEGIC OVERVIEW - MTSF
Collect analyses and disseminate information on property trends and values in the affordable housing market.
Develop policy and administration systems that support individual transactions in the affordable secondary housing market.
Issuing of title deeds to form part of housing development process. This includes pre-1994 and post-1994 backlog.

14. Strategic Oriented Outcome Goals
Strategic Outcome Oriented Goal number 1
Compliant Estate Agency Sector.
Goal Statement
All Estate Agents are compliant with the relevant legislation by 2018/19.
Strategic Outcome Oriented Goal number 2
Consumers are aware and understand all forms of property transactions
The EAAB will ensure that at least 2 million consumers are made aware of property transactions through appropriate media platforms by the end of 2018/19.
Strategic Outcome Oriented Goal number 3
Sustainable Fidelity Fund for property consumer claims.
The EAAB will continue to ensure that the Fidelity Fund is efficiently and effectively

15. Strategic Oriented Outcome Goals
Strategic Outcome Oriented Goal number 4
Professional and capacitated Estate Agency Sector.
Goal Statement
The EAAB will ensure that 100% of the registered estate agents are fully qualified in terms of legislative requirements by the end of 2018/19.
Strategic Outcome Oriented Goal number 5
Transformed Estate Agency Sector
EAAB will develop and implement programmes to accelater the achievement of 30% participation of previously disadvantaged background in the Profession of Estate Agents

16. PRIORITIES FOR 2017/18
Assistance of DHS in the eradication of title deeds backlog by 2019.
Implementation of Research unit within EAAB to support transactional support function and gain an understanding of illegal trading Estate Agents.
Implementation of new Transformation function activities and outputs.
Ensuring that MTSF targets relating to EAAB are achieved.
Finalisation of Property practitioners Bill.

17. KEY PERFORMANCE ANNUAL TARGETS
Outcome
Output
Performance Indicator
2017/18
Target
2018/19
2019/20
Compliant real estate sector
Resolving complaints received from the Public In respect of Estate Agents contravention of the FICA and EAAAct.
Percentage of complaints are resolved within 6 months
75% of complaints are resolved within 6 months
80% of complaints are resolved within 6 months
85% of complaints are resolved within 6 months
Issue of Fidelity Fund certificates to new Estate Agents as per EAAAct requirement.
Percentage of issued certificates (FFC) to new registered and compliant estate agents within 21 days
95% of FFC issued to compliant new registered estate agents issued within 21 days
95% of the certificates issued to new registered and compliant estate agents within 21 days
Issue of Fidelity Fund certificates to current Estate Agents as per EAAAct requirement
Percentage renewal certificates (FFC) issued to current registered and compliant estate agents issued within 5 days.
90% of the renewal certificates issued to current and compliant estate agents within 5 days.
95% of the renewal certificates issued to current and compliant estate agents within 5 days.
95% of the renewal certificates issued to current and compliant estate agents within 5 days

18. KEY PERFORMANCE ANNUAL TARGETS
Outcome
Output
Performance Indicator
2017/18
Target
2018/19
2019/20
Compliant real estate sector
Self- assessments evaluations performed by Estate Agents in respect of compliance to the EAAAct and FICA.
Number of self- assessment evaluation received. analysed, remediated and prosecuted
600 number of self-assessment evaluation received, analysed remediated and prosecuted
700 number of self-assessment evaluation received, analysed remediated and prosecuted.
800 number of self-assessment evaluation received, analysed remediated and prosecuted.
Rehabilitation of illegal trading Estate Agents
Number of illegal trading Estate Agents rehabilitated.
1 research paper in respect of illegal trading Estate Agent .
500 illegal Estate agents rehabilitated
1000 illegal Estate agents rehabilitated.

19. KEY PERFORMANCE ANNUAL TARGETS
Outcome
Output
Performance Indicator
2017/18
Target
2018/19
2019/20
To build capacity of key stakeholders and professionalise the estate agency sector.
Facilitating Exams for PDE4 & 5 candidates
Percentage of NQF level 4 & 5 candidates wrote the PDE and received results
100% of NQF level 4&5 candidates enrolled and completed PDE receiving results
Facilitating qualification exemption
Number of Estate agents exempted from professional
qualification
500 Estate Agents exempted from professional qualification
600 Estate Agents exempted from professional qualification
800 Estate Agents exempted from professional qualification
Completion of Logbooks by Intern Estate Agents
Number of registered intern Estate Agents who
have submitted internal logbooks.
1000 registered Intern Estate Agents have submitted internal logbooks.
2000 registered Intern Estate Agents have submitted internal logbooks.
3000 registered Intern Estate Agents have submitted internal logbooks
Estate agents seminars and road shows performed.
Number of Estate agents roadshow seminars performed
20 Estate agents roadshows seminars performed.
Estate agents
roadshows seminars performed

20. KEY PERFORMANCE ANNUAL TARGETS
Outcome
Output
Performance Indicator
2017/18
Target
2018/19
2019/20
To build capacity of key stakeholders and professionalise the estate agency sector.
Magazine published by Estate Agency Affairs Board
Number of Agent magazines published
4 Agent magazines published per annum.
Facilitating CPD events
Number of CPD participants who have met the requirements
1000 CPD participants have met the requirements
2000 CPD participants have met the requirements
3000 CPD participants have met the requirements
Facilitation of publications through social media.
Percentage of estate agents accessing the social media applications for publications.
50% of the Estate agents accessing social media publications to read on issues.
60% of the Estate agents accessing social media publications to read on issues
70% of the Estate agents accessing social media publications to read on issues

21. KEY PERFORMANCE ANNUAL TARGETS
Outcome
Output
Performance Indicator
2017/18
Target
2018/19
2019/20
Transformed real estate sector.
Facilitation of youth placement through the property incubator process.(i.e. Youth that have completed the internship)
Number of youth interns placed with property industry host employers through the property incubator process.
1000 youth placed with host employers.
2000 youth placed with host employers
3000 youth placed with host employers.
Facilitation of PDII placement through the property incubator process.(i.e. Persons older than 35 years, women and disabled persons)
Numbers of previously disadvantage individual’s interns placed with property industry host employers through the incubator process.
1000 previously disadvantaged placed with host employers
2000 previously disadvantaged placed with host employers
3000 previously disadvantaged placed with host employers
Facilitation of transformational activities for Estate Agency sector.
Development of mechanisms and transformational initiatives to assist Estate Agents and the public to participate in the Estate Agents sector.
Research performed in respect of barriers to entry in the Estate Agency sector, Regularization of Estate Agents and Amnesty regulation.
Implementation of the recommendations from research performed.
Monitoring the progress of impact in respect of transformational tools.

22. KEY PERFORMANCE ANNUAL TARGETS
Outcome
Output
Performance Indicator
2017/18
Target
2018/19
2019/20
Transformed real estate sector.
Monitoring Estate Agents operating in the subsidized and affordable housing areas.
Percentage increase of Estate Agents operating in the subsidized and affordable housing areas.
10% increase of Estate Agents operating in the subsidized and affordable housing areas.
Estate Agencies recruitment and training of Interns
Number of interns placed with principal Estate /Agents.
4000 interns placed with principsl Estate Agencies
1000 interns placed with principsl Estate Agencies
N/A
Production of data and information on the residential property trends(i.e sales trends and growth rates on subsidized and affordable housing sector.)
Supply of on information /data on industry trends and analysis
Bi-annual data/information on industry trends and analysis available
Title Deeds restoration projecr(EAAB to assist in project management and secretariat)
Percentage completion of project.
100% completion of title deed project.

23. KEY PERFORMANCE ANNUAL TARGETS
Outcome
Output
Performance Indicator
2017/18
Target
2018/19
2019/20
Transformed real estate sector.
Facilitation of transformational activities for Estate Agency sector.
Development of Financial incentive process for Transformation activities.
Development of financial incentive process for transformational activities.
Implementation of financial incentive process for transformational activities.
Monitoring the progress incentive process for transformational activities.
Implementation of Amnesty campaign for estate agents.
Development of Amnesty policy and procedure
Implement Amnesty campaign in respect of section 33.3 of the EAA Act.
Monitor Amnesty campaign in respect of section 33.3 of the EAA Act.
Consumer awareness Bill Boards
Number of Bill boards set-up.
15 Bill Boards set-up per annum.
20 Bill Boards set-up per annum
25 Bill Boards set-up per annum
Consumer awareness through Social media.
Percentage of queries addressed in respect of consumer awareness from social media.
90% of the social media queries addressed within 48 hours.
100% of the social media queries addressed within 48 hours

24. KEY PERFORMANCE ANNUAL TARGETS
Outcome
Output
Performance Indicator
2017/18
Target
2018/19
2019/20
Consumers are aware and understand all forms of property transactions
Facilitating consumer awareness on property issues through the use of National radio station
Number of housing consumers reached through National radio
housing consumers reached
housing consumers reached
housing consumers reached
Facilitating consumer awareness on property issues through the use of Community radio station
Number of housing consumers reached through Community radio
housing consumers reached
housing consumers reached
housing consumers reached
Facilitating consumer awareness on property issues through the use of National radio st
Number of housing consumers reached through Print media

25. KEY PERFORMANCE ANNUAL TARGETS
Outcome
Output
Performance Indicator
2017/18
Target
2018/19
2019/20
Sustainable Fidelity Fund
Processing claims to property consumers
Percentage of claims processed and finalized for payment within 6 months
76% of claims processed and finalized for payment within 6 months
80% of claims processed and finalized for payment within 6 months
82% of claims processed and finalized for payment within 6 months
Processing interest received on Estate Agents Trust accounts due to EAAB.
Percentage of interest money due to EAAB collected within 30 days of falling due.
95% of interest money due to EAAB collected within 30 days of falling due.
95% of interest money due to EAAB collected within 30 days of falling due.
95% of interest money due to EAAB collected within 30 days of falling due

26. Draft and Confidential
EAAB - BUDGET 2017/18
Draft and Confidential

27. Draft and Confidential
TRENDS
Income
FFC renewals fee to increase by 36% except for interns to support transformation
FFC new registration fee to increase by 6% except for interns to support transformation
Income from exams to increase as examination deadline come closer;
Interest income estimated to increase by 7.48%;
Management fee to remain relatively constant;
Expenses
Admin cost to increase slightly due to inflation;
Staff costs to increase slightly as vacant % has decreased significantly;
Draft and Confidential

28. Draft and Confidential
EAAB - BUDGET 2017/18
Draft and Confidential

29. FIDELITY FUND - BUDGET 2017/18
Draft and Confidential

30. FIDELITY FUND - BUDGET 2017/18
Draft and Confidential

31. Draft and Confidential
TRENDS
Income
Contributions from New Registrations are estimated to increase by 20%;
Agent interest estimated to increase by 12%;
Interest Income is budgeted at 7% on the expected capital investment of R70 million;
Top40 is expected to generate annual returns of 8% per annum on the capital investment of R350 million;
Expenses
Overall increase in operating expenditure is estimated at 28%;
Management fee is charged by the EAAB at 9% of the Net Asset Value of the Fidelity Fund;
Draft and Confidential

32. Draft and Confidential
THANK YOU
Draft and Confidential