NAMA

NAMA: The National Association of Managing Agents

Managing Agents Complete Guide to NAMA Memberships

NAMA, is a voluntary, non-profit organisation that promotes and supports professional community scheme management in South Africa.

NAMA represents the common interests of managing agents and other participants in the community schemes industry.  It works to improve industry knowledge, professional conduct, service standards and cooperation between managing agents, community schemes, service providers and regulatory bodies.

NAMA is an industry association and not a government regulator.  Membership is voluntary and does not replace the legal registrations, licences or certificates that a managing agent may be required to hold.

The Objectives of NAMA

NAMA’s main objectives include:

• Promoting professional community scheme management.
• Representing the collective interests of its members.
• Encouraging consistent standards among managing agents.
• Providing education, training and industry information.
• Helping members understand their regulatory and statutory responsibilities.
• Promoting ethical conduct and accountability.
• Providing networking and information-sharing opportunities.
• Engaging with government, regulators and other property organisations.
• Encouraging transformation and wider participation in the industry.
• Receiving and considering complaints concerning NAMA members through its internal processes.

NAMA was established in July 2001 by a group of professionals who recognised the need for a national organisation representing managing agents in South Africa.

Community scheme management involves complex financial, administrative, legal and people-management responsibilities.  Managing agents must understand the rules governing different community schemes and be able to guide trustees, directors, committee members, owners and occupiers.

NAMA was formed to bring industry participants together, encourage professional standards and provide managing agents with education, information and representation in an industry that continues to change.

Community Schemes

A community scheme is a property arrangement in which people share the use of, and responsibility for, parts of land or buildings.

Community schemes may include:

• Sectional title schemes;
• Homeowners’ associations;
• Property owners’ associations;
• Share block companies;
• Housing schemes for retired persons;
• Housing co-operatives; and
• Other developments where owners or occupiers share facilities, services or responsibilities.

Community schemes commonly have shared expenses, rules, meetings, budgets, maintenance responsibilities and common property that must be properly administered.

A Managing Agent’s Responsibilities

A managing agent is appointed by a community scheme to perform agreed management and administrative services.

Depending on the management agreement, these services may include:

• Preparing budgets and financial reports;
• Collecting levies and managing arrears;
• Paying approved scheme expenses;
• Maintaining accounting and administrative records;
• Arranging meetings and preparing notices, agendas and minutes;
• Assisting with statutory and regulatory submissions;
• Maintaining owner, member and contractor information;
• Assisting trustees or committee members with scheme administration;
• Obtaining quotations and coordinating approved maintenance work;
• Assisting with insurance administration and claims;
• Communicating with owners, occupiers and service providers; and
• Helping the scheme apply its conduct and management rules.

The managing agent does not replace the trustees, directors or committee members who remain responsible for governing the scheme.  The agent performs the services and exercises the authority granted in the written management agreement.

NAMA Board

NAMA is incorporated as a non-profit company and is governed by its Memorandum of Incorporation.  The organisation is overseen by a National Board of Directors.  Regional structures and committees support its activities and represent members in different parts of South Africa.

NAMA is currently represented through six regions:

• Eastern Cape;
• Free State;
• Gauteng North;
• Gauteng South;
• KwaZulu-Natal; and
• Western Cape.

Its national head office is situated in Pretoria.  The Board provides strategic direction, while management and regional representatives support membership, training, events, communication and administration.

NAMA Is Not a Regulatory Authority

NAMA does not register property practitioners, issue Fidelity Fund Certificates, regulate community schemes or make legally binding orders in community scheme disputes.

Those responsibilities belong to statutory bodies established by legislation.

NAMA can:

• Set voluntary membership standards;
• Require members to follow its Code of Conduct;
• Provide training and industry guidance;
• Represent members’ collective interests;
• Receive complaints about NAMA members; and
• Take membership-related action through its internal processes.

NAMA cannot replace the enforcement powers of the PPRA, CSOS, a court or another statutory authority.

NAMA Membership

NAMA membership is voluntary and is available in different categories.

These categories may include:

• Corporate Members: Businesses that practise as managing agents.
• Portfolio Managers: Individuals who work in community scheme management and meet NAMA’s applicable education or recognition requirements.
• Regional Service Providers: Businesses that supply professional or other services to the industry within a region.
• National Service Providers: Service providers represented nationally.
• Community Scheme Members: Qualifying community schemes managed by a NAMA Corporate Member.
• Honorary Members: Individuals invited by NAMA because of their experience, expertise or contribution to the industry.

Membership categories, criteria, benefits and fees may change. Applicants should confirm the current requirements directly with NAMA.

Corporate Membership for Managing Agents

A managing agency applying for Corporate Membership must satisfy NAMA’s application requirements.

These currently include providing information and supporting documents relating to matters such as:

• The registered business and trading name;
• CIPC registration information;
• Directors and property practitioners;
• A valid PPRA Fidelity Fund Certificate issued in the name of the managing agency;
• The Fidelity Fund Certificates of relevant directors and property practitioners;
• FIC registration information;
• Debt collection registration, where applicable;
• VAT information, where applicable; and
• Acceptance of NAMA’s Memorandum of Incorporation, membership terms and Code of Conduct.

Corporate Members must remain in good standing, pay their membership fees and supply updated compliance documents when required.  NAMA requires Corporate Members to provide their renewed Fidelity Fund Certificate annually.

Acceptance as a NAMA member does not transfer responsibility for compliance to NAMA.  The managing agency and its responsible persons remain accountable for meeting all legal and regulatory requirements.

The NAMA Code of Conduct

Corporate Members agree to follow NAMA’s voluntary Code of Conduct in addition to the laws and regulatory codes that apply to their activities.

The Code promotes professional behaviour in areas such as:

• Honest and transparent dealings;
• Disclosure of important business information;
• Proper management agreements;
• Avoidance and disclosure of conflicts of interest;
• Protection of clients’ money and records;
• Confidentiality;
• Fair treatment of community schemes;
• Responsible financial administration;
• Professional communication; and
• Compliance with applicable legislation and regulatory requirements.

The NAMA Code does not replace the Property Practitioners Act, the PPRA Code of Conduct, CSOS requirements or any other law.  Where legislation imposes a stricter or additional obligation, the member must comply with the law.

Education and Training

NAMA promotes education as an important part of improving community scheme management.

Its education and development activities may include:

• Training courses;
• Workshops and webinars;
• Regional information sessions;
• Conferences and expos;
• Industry publications and updates;
• Training for managing agents and portfolio managers; and
• Educational programmes for trustees, owners and occupiers.

NAMA also provides a short online programme covering sectional title living and the responsibilities associated with shared ownership.

A NAMA course or membership recognition should not automatically be treated as a statutory qualification or regulatory licence.  Managing agents must separately meet any education and registration requirements prescribed by the PPRA or another competent authority.

NAMA and the Property Practitioners Regulatory Authority – the PPRA

The Property Practitioners Regulatory Authority, the PPRA, is the statutory authority responsible for regulating property practitioners under the Property Practitioners Act.

Where a managing agent performs activities falling within the Act’s definition of a property practitioner, the managing agent and the business must meet the applicable PPRA requirements. These include:

• Registration with the PPRA;
• Holding valid Fidelity Fund Certificates;
• Compliance with the PPRA Code of Conduct;
• Trust account compliance or an approved exemption;
• Submission of prescribed financial or audit information;
• Education and training requirements where implemented; and
• Compliance with inspections, directives and regulatory processes.

NAMA requires a Corporate Member practising as a managing agent for gain on behalf of another person to provide a valid PPRA Fidelity Fund Certificate in the name of the business.

NAMA membership does not replace PPRA registration or a Fidelity Fund Certificate.

NAMA and the Community Schemes Ombud Service – CSOS

CSOS is a statutory body established to regulate specified aspects of community schemes, provide education and information, receive scheme governance documents and resolve certain community scheme disputes through conciliation and adjudication.

Community schemes must meet their own CSOS registration, levy, governance and filing requirements. A managing agent may assist a scheme with these processes, but the scheme’s executive committee remains responsible for ensuring compliance.

NAMA engages with CSOS on issues affecting managing agents and community schemes. However, NAMA cannot make a CSOS adjudication order or replace the CSOS dispute-resolution process.

NAMA and the Financial Intelligence Centre – FIC

The FIC works to prevent money laundering, terrorist financing, proliferation financing and other financial crimes.

Managing agents whose activities bring them within the definition of an accountable institution must meet the applicable Financial Intelligence Centre Act requirements. These may include:

• Registration with the FIC;
• Completing a business risk assessment;
• Maintaining a Risk Management and Compliance Programme;
• Identifying and verifying clients and beneficial owners;
• Keeping prescribed records;
• Screening relevant persons against applicable sanctions lists;
• Training employees; and
• Submitting required reports.

NAMA may provide members with information and industry support, but FIC compliance remains the responsibility of the managing agency.

The Law Behind Community Scheme Management

Managing agents work within a broad legal and regulatory framework. Depending on the type of scheme and the services provided, relevant legislation may include:

• The Sectional Titles Schemes Management Act;
• The Community Schemes Ombud Service Act;
• The Sectional Titles Act;
• The Property Practitioners Act;
• The Financial Intelligence Centre Act;
• The Protection of Personal Information Act;
• The Promotion of Access to Information Act;
• The Companies Act;
• The Share Blocks Control Act;
• The Housing Development Schemes for Retired Persons Act;
• The Debt Collectors Act; and
• Applicable municipal by-laws and scheme governance documents.

No single registration covers every obligation. The managing agency and the community scheme must identify which laws apply to their particular structure and activities.

Complaint Resolution

NAMA provides a process for submitting queries and complaints relating to its members.

Depending on the nature of the complaint and NAMA’s governing documents, it may:

• Request information from the parties;
• Consider whether the member has breached the NAMA Code of Conduct;
• Refer the matter through an internal ethics or disciplinary process; or
• Take action affecting the person’s NAMA membership.

Submitting a complaint to NAMA does not replace a complaint or application that must be lodged with the PPRA, CSOS, the FIC, the Information Regulator, the Council for Debt Collectors, a court or another competent authority.

A complainant should identify the nature of the problem and submit it to the organisation that has the legal power to provide the required remedy.

Managing Agents

Before appointing a managing agent, a community scheme should conduct proper checks and compare the services, experience and compliance status of potential agents.

Important checks may include:

• Whether the business holds a valid PPRA Fidelity Fund Certificate;
• Whether the relevant directors and property practitioners are properly registered;
• Whether the agency is registered with the FIC, where required;
• Whether it holds any required debt collection registration;
• Whether it is a current NAMA member in good standing;
• Its experience with the particular type and size of community scheme;
• Its financial controls and trust money arrangements;
• The qualifications and experience of the portfolio manager;
• Its complaints and communication procedures;
• Its professional indemnity or other insurance;
• The services included in its management fee; and
• The terms for appointment, renewal and termination.

NAMA membership is a useful consideration, but it should form part of a wider due-diligence process. It is not a guarantee that a member will never make an error or become non-compliant.

The Management Agreement

The relationship between a community scheme and its managing agent should be recorded in a clear written management agreement.

The agreement should address matters such as:

• The services to be provided;
• The authority delegated to the managing agent;
• The management fee and additional charges;
• Banking and payment controls;
• Collection of levies and arrears;
• Record keeping and access to information;
• Reporting requirements;
• Insurance and maintenance administration;
• Conflicts of interest;
• Protection of personal information;
• Complaints and dispute procedures;
• The duration of the appointment; and
• Termination and the handover of records and funds.

Trustees or committee members should understand the agreement before it is signed and should regularly monitor the managing agent’s performance against it.

Benefits of NAMA Membership

Depending on the membership category, NAMA membership provides:

• Professional recognition;
• Access to industry information and updates;
• Training and educational opportunities;
• Networking with managing agents and specialist service providers;
• Regional and national events;
• Representation on issues affecting the industry;
• Access to member resources; and
• Participation in a national community scheme management network.

Membership also requires the member to maintain the standards, documents, fees and conduct expected by NAMA.

Non-Compliance

A NAMA member who fails to comply with the organisation’s Memorandum of Incorporation, membership terms, Code of Conduct or payment requirements may have membership rights suspended or membership terminated through the applicable process.

Separate legal or regulatory non-compliance may also result in:

• Investigation by the PPRA or another regulator;
• Withdrawal or non-renewal of a Fidelity Fund Certificate;
• Fines or administrative sanctions;
• A CSOS dispute or adjudication order;
• Loss of a management contract;
• Financial or civil claims;
• Reputational harm; or
• Referral to another authority.

The precise consequences depend on the conduct involved and which organisation has jurisdiction.

Stay PPRA Compliant Without the Stress

Managing a community scheme business is demanding enough without having to monitor every PPRA, FIC, CIPC, POPIA and PAIA requirement yourself.   Let us take care of the compliance details while you focus on your clients and your business.

Managing agencies fall within a specialised PPRA category and must hold the appropriate Fidelity Fund Certificates for the business, its directors and employees who perform property practitioner activities.

If your agency also sells or leases property, it must be registered in the real estate category as well. Both categories can be registered under the same business entity, and we manage the complete process for you.

From registrations and Fidelity Fund Certificates to renewals, deadlines and ongoing compliance, we act as your compliance watchdog and help keep your business operating legally and confidently.

Unsure which category applies to you? Read Which FFC Do I Fall Under? or let our team provide clear, practical advice for your business.

Let’s Get Your Compliance Sorted

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Disclaimer:

This information was accurate at the date of publication. However, legislation, regulations, membership requirements, fees and regulatory processes may change without notice. This content is provided for general information and should not be regarded as legal, financial or professional advice. Always confirm the latest requirements with NAMA and the relevant regulatory authorities before acting.