If you’re a real estate agency owner (estate agency inclusive of sole proprietors), you must submit a verified BEE certificate to obtain your FFC.
Section 48 of the new Property Practitioners Act (which came into effect in February 2022) states that no entity may act in the capacity of a property practitioner without a valid FFC (Fidelity Fund Certificate), and section 50 (a) (x) makes it clear that said FFC may not be issued without a BEE certificate.
There are three BEE categories:
EME (Exempt Micro Enterprise),
QSE (Qualifying Small Enterprise),
Generic.
This is based on Annual Turnover (Your financial period), with EMEs having the smallest at under R2.5 million, Qualifying Small enterprises with less than R 35 million and Generic businesses with more than R35 million as their annual turnover.
BEE points are earned as per the Amended Property Sector Code (APSC) of 2017.
This doesn’t affect the EMEs (only need to complete an Affidavit)
When an agency achieves more than R2.5 million in annual turnover, it is recognised as a QSE.
QSEs and Generic companies need to earn a minimum of 40 BEE points to achieve level 8 BEE status (the lowest status as a compliant contributor) and thus qualifying for a valid, compliant BEE certificate, without which the PPRA won’t issue your FFCs.
Rating points per rating level;
How do you earn these points?
The point system is as per the amended Property Sector Scorecard:
The QSE Scorecard assigns points as follows:
Agencies will need a B-BBEE Plan in place to achieve the minimum of a level 8 certification if not they will not be issued a FFC license next year.
The next round of FFCs will be issued in 2025, and is insistent on implementing a requirement for what it is calling a valid BEE certificate – meaning that applicants earning over a certain threshold must meet Level 8 requirements.
The earlier you start your planning the easier it will be for you!