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The property sector has always been characterised by inequality, meaning that the property sector was closed off to previously disadvantaged players. Those who managed to break into the industry soon ran into a huge obstacle – a lack of resources (in particular, financing) to compete effectively. To remedy the situation, the Property Sector Charter Council gazetted the Property Sector charter under Section 12 in 2007, this is a document where all associations operating in the industry sector committed themselves to the transformation of the property sector. The Charter bound members to effect transformation in the property industry. The Council was gazetted into law under Section 9 (1) in June 2012 although the process to create it dates back to 2003.

The Council has 21 members, associations with different agendas and points of emphasis in the property industry. SAIBPP, a proponent of transformation in the property sector, is one of the Council’s members. Others include South African Property Owners Association (SAPOA), Estate Agencies Affairs Board (EAAB) and Women Property Network (WPN). “Our members are associations, not individuals. They are different in their missions, and as a Council, we represent their interests,” explains Council CEO Portia Tau-Sekati.

The Council, whose line ministry is the Department of Public Works, has a board that represents every segment of the property industry. It also has an executive committee that helps with everyday operations. Tau-Sekati became CEO in 2008 after years of being involved in the drafting of the property charter. Inducing change in the property sector is the core of the council’s work. “Our mandate is in line with the policy of Broad-Based Black Economic Empowerment Act (B-BBEE Act), a mechanism by the South African government to enable previously disadvantaged individuals to play a meaningful role in the mainstream economy and create a development mechanism. Such inclusive participation in the economy will help optimise the country’s growth,” says Tau-Sekati.

The Council’s chief mandate is to establish principles to implement B-BBEE in the property sector. It outlines transformation targets and sets up measures to monitor companies’ level of transformation with respect to B-BBEE. Engagements in the property sector started in 2003, and its establishment followed the principles of the B-BBEE Act. These codes, which are supervised by the Department of Trade and Industry, use a scorecard composed of elements of transformation that carry a numerical value target. Using these elements in the scorecards, companies are rated between levels one and nine and then issued with certificates (where level nine is considered a non-compliant).