Last month I wrote about which North Coast estates were the best to live in. The flip side of this is which estate is the best for a property practitioner to work in?

To give some context to the perhaps provocative title of this article, for many years popular lifestyle estates have charged property agents compulsory fees to work in a given estate.

These range from between R1 000 and R5 000 to even up to R20 000 per year per agent.

Considering that some estates have over 100 agents from different estate agencies registering to sell or rent in these areas per year, you can do the math as to the income generated.

Some even limit the number of agencies or agents allowed to work within the estate.

Homeowners are then forced to pick from the select, exclusive few the gated estate prescribes and are not able to choose the agent of their choice – an absurd notion outside of a gated estate.

This “directive” began because estates have different rules and regulations and homeowner associations (HOA) wanted agents to relay the rules correctly to new owners so that there are no issues down the line. Hence an exam, or better still, an orientation of the estate should be conducted to educate agents who can then correctly inform the potential new owner on the various regulatory aspects and nuances of the said estate.

This is an important and beneficial aspect, and all agents are on board with this. This even extends to having to pay a small fee for biometric access. Historically, no agent complained about paying a small and reasonable administration fee for this either.

But over the years some estates saw this as an easy way to earn a few extra rands for very little work, and gradually escalated these access fees. For example, some estates even hosted “appreciation breakfasts” to thank agents once a year, but hilariously, when looking at the breakdown of the agent fee, this was sadly a line item charged to the agent.

There is a more pressing issue that need attention, however. In 2019, the supervisory body of the property practitioners’ regulatory authority, the PPRA, set about stopping these charges in the name of transformation, as not all agents can afford to pay such charges.

Progress stalled during the Covid-19 pandemic, but in 2023 the PPRA began imposing fines on agents who paid these fees, warning that continued payment would result in license revocation. Agents, and I am happy to report many estates (including the big two on the North Coast) stopped paying and asking fees this year.

Two estates persist in demanding payment though. Admittedly, they have lowered their fees considerably – which agents are grateful for.
But it does not matter if it is R50 or R5 000, if the agent pays and the PPRA finds out, that agent will be facing a hefty fine and have their license revoked.

One of these two estates has at least allowed agents to still trade and will continue to sign off sale agreements. The other still refuses to sign off sale and rental agreements unless the agent has paid the stipulated annual fee, essentially forcing agents to break the law.

So, if you are thinking about selling or renting in a Ballito estate, it might be worth your while to check with the HOA on whether your estate is still applying a compulsory agent fee and if you will be able to use the agent of your choice, which I believe is your right.

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