Broad-Based Black Economic Empowerment Act, 2003 (Act No. 53 of 2003)

Codes of Good Practice on Broad-Based Black Economic Empowerment

Amended Property Sector Code

7. Focus of Application
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7.1This amended sector code applies to the South African property sector, and in particular to all enterprises engaged in property ownership or the provision of property services, and includes without limitation, practitioners and enterprises engaging in property development. It does not include any property enterprise outside the borders of Republic of South Africa.

 

7.2The stakeholders all acknowledge that the scope defined in this paragraph 7.1 represents a basis for delineation of the property sector based upon common commercial characteristics.

 

7.3Subject to any provisions to the contrary contained in any provision of the amended codes of good practice issued under the B-BBEE Amendment Act:
7.3.1This amended sector code will be applicable to a subsidiary of a holding company or a division or business unit of a company if the primary business of the subsidiary, division or business unit of that company (“the entity”) is dealing in property or providing property services (“the services”), even if the company or holding company has to comply with provisions of another code issued in terms of Section 9(1) of the B-BBEE Act as amended. Notwithstanding the above, where a company or holding company has to comply with the provisions of another code issued in terms of Section 9(1) of the B-BBEE Act as amended and the entity of such company or holding company provides the services, this code shall not apply to such entity if the services provided by such entity:
7.3.1.1relate to the internal business requirements of such entity, company or holding company;
7.3.1.2relate to an in-house function of such entity, company or holding company; and
7.3.1.3does not compete in the open market with services provided by entities to which this code applies.
7.3.1.4For the avoidance of doubt this code shall, among other, not apply to the following activities undertaken by entities such as but not limited to: mortgage loans, securitisation of mortgage loans, properties in possession of banks, properties owned, leased or otherwise used for the conducting of the business of the company or holding company and in-house property management services.
7.3.1.5In case of doubt, please refer to the technical guideline and verification manual.

 

7.4All Measured Entities falling within the scope of the amended Property Sector Code as set out in 6 above may only be measured for compliance in accordance with this Amended Property Sector Code.

 

7.5A section 9(1) code is legally binding on the applicable sector, organ of state or public and private entities.

 

7.6The determining factor for a holding company/group of companies or subsidiary compliance with the aligned Property sector code is the scope of application of the aligned Property sector code and/or revenue. If a holding company/group of companies of subsidiary derives over 50% of its revenue and/or have its significant core from "this sector" then such measured entity will be measured in accordance with the scorecard of this aligned Property sector code.