The real estate industry on Thursday formally announced the formation of a new body, the National Association of Real Estate Agencies (Narea), that will represent agencies throughout the country.

The new organisation, backed by leading players in the real estate industry, said that the industry in SA had been without a "meaningful platform to look after the interests of estate agents on a national level and to represent them in a democratic and effective manner".

The formation of the body has, however, ruffled feathers at the Institute of Estate Agents of SA, which has 7000 members. The institute claims to be a national body representing the interests of estate agents across the country.

The institute said that the new body could confuse government as to who "truly represents" the industry.

Portia Tau-Sekati, CEO of the new body, said on Thursday after the organisation's founding members' meeting that the formation of the organisation would enable the industry to "speak with one voice on matters of national importance and be truly representative of real estate agencies, providing supportive value and benefits for the overall good of the industry".

"To achieve this, we will, of course, work together with any other organisation that aligns (with) and supports the objectives of Narea."

Tau-Sekati said negotiations for the formation of Narea had been going on since last year and that the organisation was registered as a Section 21 company in July.

Tau-Sekati was appointed CEO on August 1.

"We want an organisation that is truly representative across regions, across colour lines and takes up issues of national importance to real estate agents."

Tau-Sekati said Narea represented 15000 to 20000 agents around the country. The organisation also has the support of heavyweight property players such as Pam Golding Properties, Jawitz Properties, Sotheby's International Realty, Homenet, RE/MAX and Chas Everitt International, among others.

Pam Golding Properties CE Andrew Golding, who was present at Thursday's meeting, said Pam Golding Properties had been a member of the institute for a "long time" but that he had been "concerned about the lack of truly national representation".

"Therefore I am fully supportive of Narea's aims and objectives."

He said the institute was not representative of agencies countrywide and that the membership was "not as all-inclusive".

"Narea intends to be completely inclusive and represent all agencies from the smallest to the biggest in a truly nationally representative body and, most importantly, across all demographic profiles," said Golding.

Bill Rawson, president of the Institute of Estate Agents of SA, said he was "very happy" the "heavyweights behind Narea" were "attempting to do something for the real estate industry".

However, Rawson said he was "sad" they were not working with and supporting an existing structure - the institute - which had been in existence for 68 years.

The institute had "national representation and regional representation in all the provinces of SA".

"It seems the resources they are putting into Narea could have been better invested in one unified body and approach to the industry as now government could be confused as to who truly represents the industry. Their (Narea's) strategy is to have one office only in Johannesburg which they will use to represent all the provinces and regions of SA.

"If we had to compare the structures, it is one CEO plus an assistant versus 85 part-time nonremunerated directors and eight officers that the institute currently has throughout SA, serving its members across all colour lines and across all companies, representing everybody."

Rawson said he was initially involved in the discussions around Narea and that he had been elected to Narea's steering committee.

He said he withdrew because Narea's objectives were the same as the institute's. He could not "wear two hats and serve two masters".

Business Day
Publisher: I-Net Bridge
Source: I-Net Bridge