1. ANNUAL PERFROMANCE PLAN 2013 – 2016 REDRESSING THE PAST, BUILDING THE FUTURE, GUIDING THE REAL ESTATE INDUSTRY TOWARDS PROFESSIONALISM

2. PRESENTATION OUTLINE REDRESSING THE PAST, BUILDING THE FUTURE, GUIDING THE REAL ESTATE INDUSTRY TOWARDS PROFESSIONALISM UPDATED SITUATIONAL ANALYSIS ALIGNMENT OF GOVERNMENT WIDE PRIORITIES WITH EAAB ACTIVITIES ORGANISATIONAL ENVIRONMENT RELEVANT LEGISLATION APPLICABLE TO EAAB EAAB MANDATE TRANSFORMATION OVERVIEW OF 2013 MTEF ESTIMATES SUB PROGRAMME – COMPLIANCE SUB PROGRAMME – EDUCATION AND TRAINING SUB PROGRAMME – CORPORATE SERVICES SUB PROGRAMME – FIDELITY FUND MATERIALITY FRAMEWORK

3. UPDATED SITUATIONAL ANALYSIS REDRESSING THE PAST, BUILDING THE FUTURE, GUIDING THE REAL ESTATE INDUSTRY TOWARDS PROFESSIONALISM Performance Environment Economic factors that impact Estate Agency growth: Lower forecasted Economic growth Higher anticipated inflation rate and interest rates. Implementation of the National Credit Act Scarcity of new developments Stricter bank lending to property buyers 8 million consumer with impaired credit records

4. UPDATED SITUATIONAL ANALYSIS REDRESSING THE PAST, BUILDING THE FUTURE, GUIDING THE REAL ESTATE INDUSTRY TOWARDS PROFESSIONALISM Performance Environment - Continued Other factors that affect Estate Agents Industry: Estate Agents may take advantage in the growing inexperienced property consumers. This may lead to higher claims made against Fidelity Fund. Mismanagement of Trust fund has continued to be a challenge within the Industry. The growing use of technology has impacted the practices of Property practices.

5. ALIGNMENT OF GOVERNMENT WIDE- PRIORITIES WITH EAAB ACTIVITIES REDRESSING THE PAST, BUILDING THE FUTURE, GUIDING THE REAL ESTATE INDUSTRY TOWARDS PROFESSIONALISM Government- Wide PrioritiesEAAB Activities Speeding up growth and transforming the economy to create decent work and sustainable livelihoods Support of Property Sector Charter Council in the implementation of BBBEE Codes in the Property industry. Encouraging Estate Agencies to train and develop PDI. Massive programme to build economic and social infrastructure Encouraging involvement of Estate Agents in the implementation of low-cost and affordability housing programmes. Comprehensive rural development strategy linked to land and agrarian reform and food security Improving accessibility to the 9 provinces in respect of Estate Agency Affairs Board services and support.

6. ALIGNMENT OF GOVERNMENT WIDE- PRIORITIES WITH EAAB ACTIVITIES REDRESSING THE PAST, BUILDING THE FUTURE, GUIDING THE REAL ESTATE INDUSTRY TOWARDS PROFESSIONALISM Government- Wide PrioritiesEAAB Activities Strengthen the skills and human resource base Partnership created with Primary, Secondary and Tertiary levels of education in order expand the awareness and education of the Industry and the Profession. Creation of Estate Agency Learnership opportunities. Intensify the fight against crime and corruption Improve the effectiveness of the whistleblower process. Improve the legislation applicable to Estate Agents. Improve partnerships between EAAB and other regulating authorities.

7. ALIGNMENT OF GOVERNMENT WIDE- PRIORITIES WITH EAAB ACTIVITIES REDRESSING THE PAST, BUILDING THE FUTURE, GUIDING THE REAL ESTATE INDUSTRY TOWARDS PROFESSIONALISM Government- Wide PrioritiesEAAB Activities Pursuing African advancement and enhanced international cooperation Participation in International bodies activities which promote the regulation of Real Estates. i.e. ARRELO. Inviting and hosting African Regulators to conferences and one on one engagements. Sustainable resource management and use Compliance with the “green” concepts in EAAB operations. Building a developmental state, including improvement of public services and strengthening democratic institutions Efficiency and Effectiveness in the service delivery of the EAAB and Fidelity Fund.

8. ORGANISATIONAL ENVIRONMENT REDRESSING THE PAST, BUILDING THE FUTURE, GUIDING THE REAL ESTATE INDUSTRY TOWARDS PROFESSIONALISM Executive Authority Board of Directors Risk and Strategy Internal Audit Chief Executive OfficerCompany Secretary Fidelity Fund Executive Compliance Executive Inspections Executive Registrations Executive Education & Training Executive Corporate services

9. RELEVANT LEGISLATURE APPLICABLE TO EAAB REDRESSING THE PAST, BUILDING THE FUTURE, GUIDING THE REAL ESTATE INDUSTRY TOWARDS PROFESSIONALISM Legislative Mandates The South African Constitution; Act 108 of 1996; The Estate Agency Affairs Act, 112 of 1976; The Public Finance Management Act, 1 of 1999; The Preferential Procurement Framework Act of 2000; The Financial Intelligence Centre Act, 38 of 2001; The Labour Relations Act, 66 of 1995; The SA Qualifications Authority Act, 58 of 1995; and The Skills Development Act, 97 of 1998 The Promotion of Administrative Justice Act 3 of 2000 The Promotion of Access to Information Act 2 of 2000 The National Credit Act 34 of 2005 The Consumer Protection Act 68 of 2008

10. EAAB MANDATE REDRESSING THE PAST, BUILDING THE FUTURE, GUIDING THE REAL ESTATE INDUSTRY TOWARDS PROFESSIONALISM 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. Additionally to the primary 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

11. TRANSFORMATION REDRESSING THE PAST, BUILDING THE FUTURE, GUIDING THE REAL ESTATE INDUSTRY TOWARDS PROFESSIONALISM One of the initiatives that has been discussed and agreed with the industry players is for each Estate Agency to recruit one potential Estate Agent from previously disadvantaged background. This individual will be put through a mentorship programme which will consist of the following: Mentor assist the trainee in registration process as an intern Train the intern in terms of the requirements set by EAAB, including compliance to Logbook checklist Assist in the achievement of NQF Level 4 & 5 qualifications, including Professional designation examination.

12. TRANSFORMATION (Continued) REDRESSING THE PAST, BUILDING THE FUTURE, GUIDING THE REAL ESTATE INDUSTRY TOWARDS PROFESSIONALISM This initiative should be operated in partnership with Services Seta in order to assist EAAB with additional resources. The resourcing of the initiative will be as follows: EAAB to fund the Education and Training of the trainee. i.e. Intern registration fees, NQF Level 4 & 5 education courses including the Professional Designation Examination. This should cost approximately R10,000 per trainee. There are `11,100 Estate Agencies. The total cost is R111 million. Services Seta will provide an allowance to sustain the trainee during the internship period. Service Seta will reimburse the Estate Agencies for Education and Training related expenses. The Estate Agencies will provide resources in respect of office space and equipment required for the trainee to perform his duties.

13. TRANSFORMATION – Current Statistics per Race REDRESSING THE PAST, BUILDING THE FUTURE, GUIDING THE REAL ESTATE INDUSTRY TOWARDS PROFESSIONALISM

14. TRANSFORMATION – Current Statistics per Race (Continued) REDRESSING THE PAST, BUILDING THE FUTURE, GUIDING THE REAL ESTATE INDUSTRY TOWARDS PROFESSIONALISM.

15. OVERVIEW OF 2013 BUDGET AND MTEF ESTIMATES REDRESSING THE PAST, BUILDING THE FUTURE, GUIDING THE REAL ESTATE INDUSTRY TOWARDS PROFESSIONALISM STATEMENT OF FINANCIAL POSITION - EAAB 2011/12 Audit R’000 2012/13 Forecast R’000 2013/14 MTEF R’000 2014/15 MTEF R’000 2015/16 MTEF R’000 Total Net Assets and Reserves122,060127,537130.067134,380138,779

16. OVERVIEW OF 2013 BUDGET AND MTEF ESTIMATES REDRESSING THE PAST, BUILDING THE FUTURE, GUIDING THE REAL ESTATE INDUSTRY TOWARDS PROFESSIONALISM STATEMENT OF FINANCIAL PERFORMANCE – EAAB (Refer to APP for Detail) 2011/12 Audit R’000 2012/13 Forecast R’000 2013/14 MTEF R’000 2014/15 MTEF R’000 2015/16 MTEF R’000 REVENUE 59,880 89,449 86,049 93,633100,187 EXPENSES 71,977 75,564 85,044 90,951 97,534 SURPLUS/DEFICT(12,097) 13,885 1,005 2,682 2,653

17. OVERVIEW OF 2013 BUDGET AND MTEF ESTIMATES REDRESSING THE PAST, BUILDING THE FUTURE, GUIDING THE REAL ESTATE INDUSTRY TOWARDS PROFESSIONALISM STATEMENT OF FINANCIAL PERFORMANCE – EAFF(Refer to APP for Detail) 2011/12 Audit Outcome R’000 2012/13 Forecast R’000 2013/14 MTEF R’000 2014/15 MTEF R’000 2015/16 MTEF R’000 REVENUE 61,25363,82466,15670,78675,742 EXPENSES 54,16662,24566,10770,73675,688 SURPLUS 7,087 1,579 47 50 53

18. SUB-PROGRAMME - COMPLIANCE REDRESSING THE PAST, BUILDING THE FUTURE, GUIDING THE REAL ESTATE INDUSTRY TOWARDS PROFESSIONALISM STRATEGIC OBJECTIVE To improve compliance to the Estate Agency Affairs Act STRATEGIES TO IMPROVE COMPLIANCE TO EAA Act Implementation of on-line registration systems to improve registration turnaround times. Implementation of on-line system to improve efficiency in resolving complaints. Partnership with key stakeholders to restrict illegal Estate Agents performing property transactions without a valid FFC. Set up of satellite offices in provinces to improve accessibility Nationally.

19. SUB-PROGRAMME - COMPLIANCE REDRESSING THE PAST, BUILDING THE FUTURE, GUIDING THE REAL ESTATE INDUSTRY TOWARDS PROFESSIONALISM STRATEGIES TO IMPROVE COMPLIANCE TO EAA Act (Continued) Legislative amendments to the Property Transaction to increase EAAB powers in prosecutions Effective inspections performed through implementation of in-house inspectorate.

20. COMPLIANCE PROGRAM PERFORMANCE INDICATORS REDRESSING THE PAST, BUILDING THE FUTURE, GUIDING THE REAL ESTATE INDUSTRY TOWARDS PROFESSIONALISM Audited 2009/10Audited 2010/11 Audited 2011/12 Projected 2012/13 Planned 2013/14 Planned 2014/15 Planned 2015/16 Number Of received and resolved 221275811291028110012001300 Number of principal Estate agents registered 14,06313,11012,98413,38513,40013,50013,600

21. COMPLIANCE PROGRAM PERFORMANCE INDICATORS REDRESSING THE PAST, BUILDING THE FUTURE, GUIDING THE REAL ESTATE INDUSTRY TOWARDS PROFESSIONALISM Audited 2009/10Audited 2010/11 Audited 2011/12 Projected 2012/13 Planned 2013/14 Planned 2014/15 Planned 2015/16 Number of Non- principal estate agents registered 18,45416,85615,93117,08017,10017,15017,160

22. COMPLIANCE PROGRAM PERFORMANCE INDICATORS REDRESSING THE PAST, BUILDING THE FUTURE, GUIDING THE REAL ESTATE INDUSTRY TOWARDS PROFESSIONALISM Audite d 2009/1 0 Audited 2010/11 Audited 2011/12 Projected 2012/13 Planned 2013/14 Planned 2014/15 Planned 2015/16 Number Of intern estate agents registered 11188895118767296730073507400 Number of Estate Agency Firms registered 10636110761144911054111001115011200

23. COMPLIANCE PROGRAM PERFORMANCE INDICATORS REDRESSING THE PAST, BUILDING THE FUTURE, GUIDING THE REAL ESTATE INDUSTRY TOWARDS PROFESSIONALISM Audite d 2009/1 0 Audited 2010/11 Audited 2011/12 Projected 2012/13 Planned 2013/14 Planned 2014/15 Planned 2015/16 Number of attorneys registered 79436462656769 Number of Inspection s 161913641484150016001700

24. SUB-PROGRAMME – EDUCATION AND TRAINING REDRESSING THE PAST, BUILDING THE FUTURE, GUIDING THE REAL ESTATE INDUSTRY TOWARDS PROFESSIONALISM STRATEGIC OBJECTIVE To build capacity of key stakeholders and professionalise the Estate Agency Sector STRATEGIES TO BUILD CAPACITY OF KEY STAKEHOLDERS Encouragement of RPL assessment Centre's to be registered and accredited by Department of Higher Education and Training institutions. Increase the number of exam sittings in order to certify more candidates for NQF 4 and NQF 5 qualifications from 4 per annum to 8 per annum. Implement the CPD programme for currently qualified Estate Agents.

25. EDUCATION AND TRAINING PROGRAM PERFORMANCE INDICATORS REDRESSING THE PAST, BUILDING THE FUTURE, GUIDING THE REAL ESTATE INDUSTRY TOWARDS PROFESSIONALISM Audited 2009/10 Audited 2010/11 Audited 2011/12 Projected 2012/13 Planned 2013/14 Planned 2014/15 Planned 2015/16 Number of NQF Level 4 candidates enrolled and passed PDE 4 N/A 206300100015002000 Number of NQF Level 5 candidates enrolled and passed PDE 5 N/A 77100150200250

26. EDUCATION AND TRAINING PROGRAM PERFORMANCE INDICATORS REDRESSING THE PAST, BUILDING THE FUTURE, GUIDING THE REAL ESTATE INDUSTRY TOWARDS PROFESSIONALISM Audited 2009/10 Audited 2010/11 Audited 2011/12 Projected 2012/13 Planned 2013/14 Planned 2014/15 Planned 2015/16 Number of service providers inspected for compliance accreditation 12151215181920 Number of candidates enrolled for CPD N/A 500150030004000

27. SUB-PROGRAMME – CORPORATE SERVICES REDRESSING THE PAST, BUILDING THE FUTURE, GUIDING THE REAL ESTATE INDUSTRY TOWARDS PROFESSIONALISM STRATEGIC OBJECTIVE To improve the effectiveness and efficiency of the EAAB. To increase stakeholder awareness of the EAAB and its role and services. STRATEGIES TO INCREASE STAKEHOLDER AWARENESS OF EAAB AND ITS ROLE AND SERVICES Build capacity in order to perform more effective consumer campaigns. STRATEGIES TO IMPROVE THE EFFECTIVENESS AND EFFICIENCY OF EAAB. Implementation and providing support of IT initiatives to perform all major operations on-line. i.e. registrations, PDE and CPD applications, on-line tracking mechanisms for claims, disciplinary cases and audit reports submissions.

28. CORPORATE SERVICES PROGRAM PERFORMANCE INDICATORS REDRESSING THE PAST, BUILDING THE FUTURE, GUIDING THE REAL ESTATE INDUSTRY TOWARDS PROFESSIONALISM Audited 2009/10 Audited 2010/11 Audited 2011/12 Projected 2012/13 Planned 2013/14 Planned 2014/15 Planned 2015/16 Consumer awareness campaigns performed 461312161820 Estate Agents Awareness campaigns performed 110 12 161820

29. CORPORATE SERVICES PROGRAM PERFORMANCE INDICATORS REDRESSING THE PAST, BUILDING THE FUTURE, GUIDING THE REAL ESTATE INDUSTRY TOWARDS PROFESSIONALISM Audited 2009/10 Audited 2010/11 Audited 2011/12 Projected 2012/13 Planned 2013/14 Planned 2014/15 Planned 2015/16 Number of Agent magazines issued 1444444 Number of on-line registrations N/A 1601384250046005700

30. SUB-PROGRAMME – FIDELITY FUND REDRESSING THE PAST, BUILDING THE FUTURE, GUIDING THE REAL ESTATE INDUSTRY TOWARDS PROFESSIONALISM STRATEGIC OBJECTIVE To effectively and efficiently control and manage the Fidelity Fund strategies to improve efficiency and effectiveness of managing the fidelity fund. EAAB has formed partnerships with key Stakeholders to improve the collection of Interest accrued to Fidelity Fund from Estate Agents Trust Funds. The EAAB is improving liaison with the commercial crimes unit of the police service to improve the recovery of claims from Estate Agents.

31. FIDELITY FUND PROGRAM PERFORMANCE INDICATORS REDRESSING THE PAST, BUILDING THE FUTURE, GUIDING THE REAL ESTATE INDUSTRY TOWARDS PROFESSIONALISM Audited 2009/10 R’000 Audited 2010/11 R’000 Audited 2011/12 R’000 Projected 2012/13 R’000 Planned 2013/14 R’000 Planned 2014/15 R’000 Planned 2015/16 R’000 Value of claims approved 8685.6743,8491,9254,0005,5006,000 Interest received from Estate Agents Trust Account 37,04831,73628,36930,00020,00022,50025,000

32. FIDELITY FUND PROGRAM PERFORMANCE INDICATORS REDRESSING THE PAST, BUILDING THE FUTURE, GUIDING THE REAL ESTATE INDUSTRY TOWARDS PROFESSIONALISM Audited 2009/10 R’000 Audited 2010/11 R’000 Audited 2011/12 R’000 Projected 2012/13 R’000 Planned 2013/14 R’000 Planned 2014/15 R’000 Planned 2015/16 R’000 Fund Balance557,143581,611588,697611,338654,132699,921748,916 Interest received from Investments 24,56422,96619,40730,38432,00033,59535,275

33. MATERIALITY FRAMEWORK REDRESSING THE PAST, BUILDING THE FUTURE, GUIDING THE REAL ESTATE INDUSTRY TOWARDS PROFESSIONALISM Quantitative Materiality level is set at R60,501. Qualitative aspects of materiality includes: Unusual transactions entered into that are not of a repetitive nature and are disclosed purely due to the nature thereof due to knowledge thereof affecting the decision making of the user of the financial statements. Transactions entered into that could result in reputational risk to the Estate Agency Affairs Board. Any fraudulent or dishonest behavior of any officer or staff of Estate Agency Affairs Board.

34. MATERIALITY FRAMEWORK REDRESSING THE PAST, BUILDING THE FUTURE, GUIDING THE REAL ESTATE INDUSTRY TOWARDS PROFESSIONALISM Qualitative aspects of materiality includes (continued): Procedures/processes required by legislation or regulation (e.g. PFMA and the Treasury Regulations). Unauthorized, irregular or fruitless and wasteful expenditure. Items of a non-financial nature, which would impact on the continued operation and deliverables of the Estate Agency Affairs Board.

35. REDRESSING THE PAST, BUILDING THE FUTURE, GUIDING THE REAL ESTATE INDUSTRY TOWARDS PROFESSIONALISM THANK YOU