Newsflash
IEASA National Conference and Expo: 31 Aug - 2 Sept 08
Book now for the 2nd annual IEASA National Conference and Expo to be held at Emperor’s Palace, Gauteng.
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IEASA
The Institute of Estate Agents of South Africa |
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 | History of IEASA |
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The Institute of South Africa was established over sixty years ago by a dedicated group of real estate businessmen whose mission was to achieve identity, recognition and unity. There had been a gathering of estate agents in the Transvaal as far back as 1918 who introduced private land ownership and who laid the foundation for the establishment of the Institute of Estate Agents of South Africa many years later. Sadly, there are no records available with names and events to substantiate this group.
The first South African Conference for Real Estate Agents and Auctioneers was held on 19 May 1932 in Bloemfontein and names such as Penny, Ellenberger, Hurd an Herman were amongst those who attended, names that were to become legends in the world of real estate in south Africa. Mr. Louis van Selm was elected chairman of this Bloemfontein chapter.
The main aims of the Institute were “to protect the interests of members and to safeguard the public against dishonest and unprincipled practitioners”.
A number of chapters were formed in other provinces and it was soon realised that a national body with an overall constitution, representing all institutes should be established. This was finally formed on 18 June 1937. Within a month the Memorandum & Articles of Association were redrafted and endorsed by all provincial regions to become the constitution of “The
Chartered Institute of Estate Agents & Auctioneers of South Africa”.
The first council was elected under Mr. Hendry Herman with a membership of 283 members, 122 from Transvaal, 85 from Cape Town, 65 from Durban and 11 from Bloemfontein.
The original intention was that membership should be voluntary but registration compulsory. The Institute’s function was seen as maintaining discipline amongst its members. The draft of the “Estate Agents Bill” was to be submitted to Parliament in 1938, was duly publiched in the Government Gazette on 10 February 1938. Numerous attemopts were made to present a bull which failed to be heard on a number of occasions. Attempts to obtain statutory recognition would take almost four decades.
In 1945 yet a new bill was published in a Government Gazette. The proposal to enforce compulsory membership wa questioned as it was maintained that a “closed shop” principle would come into being. In an attempt to avoid another failure, the Institute’s council appointed Senator Shepstone and Major Isaacs approached the Prime Minister, General JC Smuts to request that legislation be introduce via the Senate as a private measure and not as a Government measure. This was agreed. This estates’ bill provided for a proper procedure for the licensing of estate agents and auctioneers of “good character” as well as subjecting all estate agents to the disciplinary control of a statutory body to which they would be compelled to belong.
In this instance the Institute was striving to protect the public before it could be subjected to and bear the consequent hardship brought about bby the misconduct of certain agents.
In 1948 after a second reading. Senator Shepstone was Administrator of Natal and removed from the issue. There was great opposition to the bill as it proposed making it compulsory for every person to obtain a licence certificate. The change of government that year meant the Institute had to start again in its efforts to obtain statutory regognition.
The Institute’s Council convened in mid 1948 and conceded that to date it had not succeeded because if the previous insistence on the closed shop principle that the Institute of Estate Agents & Auctioneers was the sole mouthpiece of all estate agents, and to bypass Parliament.
A new more realistic bill was proposed which allowed for a simple procedure of licence control for estate agents, but making it possible for anyone “of good character” to obtain this licence. Every agent would be eligible for IEA membership, have a voice in the Institute and participate in the election of office bearers.
The bill was read in January 1950, but the commenting committee appointed was unable to report back during that Parliamentary session. The second reading was in March 1951 and drew much opposition as it was regarded as a private bill. In 1952 the Institute Council sought licence control via provincial legislation, draft ordinances were prepared and were confirmed in principle. For the nest three years attempts at any control of estate agents were at a standstill while the outcome of attempts at provincial licensing were awaited.
This period was marked by bitter infighting between the provincial branches. In 1956 the old rivalry between north and south reappeared. S Transvaal insisted that a Fidelity Fund be immediately established to support the Institute’s attempts at statutory recognition, but Natal and the Cape were adamant about a referendum. Only 50% if members supported the latter whereas 70% supported the S Transvaal’s proposal for a Fidelity Fund. This was turned down and S Transvaal decided to pursue the matter on a Private Bill through Parliament on t sows, having ascertained that this was less expensive than believed.
A memorandum was drawn up criticizing the administration of the National Council and requesting for a radically altered Council, which would deal with urgent matters in a more efficient manner. They proposed a restructured national body with one delegate from each province plus a President, and a full time secretary.
A new subcommittee was formed to establish an Estate Agent’s Bill and Fidelity fund as well as Area Liaison Committees upon which all branches should be represented. It was also decided to implement a Fidelity Fund by a simple majority from July 1958. The most important decision, however, was a memorandum to instruct lawyers to obtain statutory recognition of the Institute. The Fidelity Fund issue, however, had to be held over.
Recognition of the Institute became top priority and at a Council meeting in November 1957, a strategy to halt the closed shop principle was discussed and basic principles were agreed upon. It was decided that there would be no restrictions on anyone becoming an estate agent, the statutory body would be known as the Institute of Estate Agents, the keeping of trust accounts and that the Institute be governed by a Board of Control.
A Development Fund was built up and each member was levies 40 cents per annum to finance attempts at statutory recognition. This was necessary due to the decline in membership, which was reflected in the financial position of the Institute. In 1958 membership was 800 members.
By October 1958 the Bill Committee had tabled a draft bill together with an explanatory memorandum , which was approved by the Council with a clear mandate to “proceed in this matter to its final end”. This attempt was also unsuccessful.
The Estate Agents’ Act 112 of 1976 was promulgated and came into operation on 1 August 1977 following an investigation by the South African Law Commission. The Code of Conduct of the Estate Agents Board was based on the ethical obligations of the Institute. The establishment of a Fidelity Fund finally came into being in 1966.
During the eighties a concerted effort was made to market the Institute nationally by urging the public to deal with Institute members. The Institute and the National Association of Realtors (NAR) have signed an affiliation which runs to 2005 entitling the Institute access to all the NAR’s training courses and educational material.
The original qualification, Certificate of Institute of Estate Agents (CIEA), was replaced when the Estate Agency Board introduced its examination, end the Diploma of Advanced Property Practice is still recognized but no longer in existence.
In 1994 all branches were registered as limited liability companies and were referred to as regions. Each is responsible for its own funding and decisions.
Fully modernized now the Institute is set to face present challenges and to act responsibly representing the interests of the industry and its members.
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