Following a meeting of IEASA National on 4 June 2009 and the consequential survey, morethan 300 agencies responded and pledged their support to the initiative. More importantly,IEASA was contacted by Mr Jeff Gilmour, the President of the Association of ResidentialCommunities (ARC), who presently represents more than 280 Residential Communities country wide and with founder members from the most prestigious estates in South Africa.

Various meetings and workshops were held with Mr. Gilmour, members of ARC and IEASA since April 2009 to date.

The following were resolved at the meeting:

1.1 ARC supports the sentiments of IEASA regarding excessively high “accreditation fees”,anti-competition practices, lack of requirements for the approval of Agents and/or training on the purpose of approval, rights of buyers and sellers etc.

1.2 ARC requested a workshop with the President and senior directors of both ARC and IEASA in order to:

1.2.1 Agree on common goals;

1.2.2 Agree on representation for IEASA on the Board of ARC or other forms of partnering;

1.2.3 Partner to communicate the issue of the approval process for Agents to all Residential Communities;

1.2.4 Partnering of ARC and IEASA to serve the objectives of both parties;

1.2.5 Start communication in the form of letters, editorials etc. in order to ensure wider buy-in from ARC and IEASA non-members and non-members.

A follow-up survey was sent to the more than 300 real estate companies/agents whoindicated their support for this initiative in order to get a commitment to contribute R500 perproblem Home Owners Association per agency.

IEASA continued to workshop the issue with the ARC committee and a framework for a Best Practices Guidelines and/or Memorandum of Agreement with Agents working in securityestates was developed. The purpose of these Guidelines in general is as follows:

Various other well thought through guidelines which will be distributed for comments once the final document has been approved by the workgroup which amongst other addressed the following principles:

as an aid to resolve any difficulties that might exist between the parties and be of assistanceto Home Owners Associations to adopt a more pragmatic and workable solution, to better cooperationbetween Home Owners Associations and IEASA members. This action will be backed up by communication from both ARC and IEASA as well as with editorials in newspapers.

Once the Best Practices Guidelines document has been distributed and implemented, ARC and IEASA will establish a process to communicate and deal with estates that do not meet these Best Practices Guidelines to resolve issues that contradict the spirit of the Guidelines.

My thanks to all the members of ARC and IEASA for your time spent unselfishly on this initiative to

date.

Yours sincerely,