The property sector code (PSC), modelled around the Codes of
Good Practice on Broad-Based Black Economic Empowerment (B-BBEE)
issued by the Department of Trade and Industry (DTI Codes), was
published in the Government Gazette and became effective on 1 June
The targets set in the PSC are valid for 10 years and will be
reviewed by the DTI after five years in order to set further
One of the overarching objectives of the PSC is to promote
economic transformation so that significant and meaningful
participation by black people, including woman and people with
disabilities, can occur within the sector.
Other complimentary objectives include promoting property
development and investment in under-resourced areas; achieving a
substantial change in the gender composition of ownership, control
and management of property; and facilitating the accessibility of
finance for property ownership and property development.
The PSC applies to all privately owned and public enterprises
who own property or who are engaged in providing property services.
This includes estate agents, property managers, developers and
valuers. The PSC is also binding on all organs of state and
communities involved with or interested in the sector.
The PSC will not apply to property that is subject to:
securitisation of mortgage loans;
ownership, leasing or use for conducting the business of a
company or holding company; and
in-house property management services.
Notwithstanding the above, the PSC has the following
Exempted Micro-Enterprises (EMEs) are defined as businesses
with a turnover of less than ZAR5 million. However, this threshold
is ZAR2,5 million for estate agents and property brokers and ZAR30
million for property asset owning businesses; and
Qualifying Small Enterprises (QSEs) are defined as businesses
with a turnover ranging between ZAR5 million and ZAR35 million.
This range is between ZAR2,5 million and ZAR35 million for estate
agents and property brokers and between ZAR30 million and ZAR280
million for asset owning businesses.
The PSC contains all seven elements of the generic scorecard in
the DTI Codes, namely: ownership, management control, employment
equity, skills development, preferential procurement, enterprise
development and socio-economic development. The PSC contains a
further element of economic development which requires that:
10% of total new property development is spent in
under-resourced areas, which did not receive adequate
infrastructure development, investment or attention from the
previous dispensation or private sectors; and
35% of property disposals are to black-owned enterprises with a
B-BBEE status of level one to level three.
A property sector Charter Council (Charter Council),
representing all stakeholders in the sector will oversee and
monitor the implementation of the PSC and will also be responsible
for issuing guidance notes on the interpretation and application of
The Charter Council must also prepare an annual report on the
progress made in implementing the PSC. To this end, each enterprise
must submit an annual B-BBEE) report to the Charter Council.
Property sector enterprises need to commit to achieving the
following targets over a five year period:
at least 25% of ownership and economic interest is held by
black people and 25% plus one vote is exercisable by black
at least 10% of ownership and economic interest is held by
black women and 10% of votes are exercisable by black women;
at least 2.5% participation in ownership and economic interest
is held by broad-based ownership schemes and/or designated
3% black disabled employees (as a percentage of all
60% black senior management (as a percentage of all employees
using the adjusted recognition for gender);
75% black middle management (as a percentage of all employees
using the adjusted recognition for gender); and
80% black junior management (as a percentage of all employees
using the adjusted recognition for gender).
Property sector enterprises need to further commit to achieving
the following targets within 10 years:
50% of voting rights for black people at board level, using
adjusted recognition for gender;
50% black executive directorship, using adjusted recognition
40% black senior top management level, using adjusted
recognition for gender; and
40% black other top management level, using adjusted
recognition for gender.
A unique employment equity scorecard, which focuses on
management and practitioners, has been provided for property
brokers and estate agents.
The content of this article is intended to provide a general
guide to the subject matter. Specialist advice should be sought
about your specific circumstances.
To print this article, all you need is to be registered on Mondaq.com.
Click to Login as an existing user or Register so you can print this article.
As a developing country, Nigeria's real estate sector is evolving at a tremendous pace. Governments at all levels are more aware of the role of real estate development on the growth of their respective territories.
Pursuant to Royal Decree No. M/4 dated 24 November 2015 and to Council of Ministers Decision No. 377 dated 13 June 2016, the Saudi Arabian legislator issued the White Land Tax Law (the "Law") and its implementing regulations (the "Regulations").
This article briefly examines the typical conveyancing process in Bahrain.
Some comments from our readers… “The articles are extremely timely and highly applicable” “I often find critical information not available elsewhere” “As in-house counsel, Mondaq’s service is of great value”
Register for Access and our Free Biweekly Alert for
This service is completely free. Access 250,000 archived articles from 100+ countries and get a personalised email twice a week covering developments (and yes, our lawyers like to think you’ve read our Disclaimer).