Diploma in Real Estate

Purpose

The purpose of the qualification is to equip learners with a comprehensive knowledge base, theory and methodology in the Real Estate field in order to enable them to demonstrate initiative and responsibility in an academic or professional context after graduation.

Upon completion learners will be able to

• Work independently and contribute to the different sectors of the property industry such as property valuation, property management, property development, or property sales and letting.
• Conduct valuations of all types of property using standard valuation methods.
• Render services related to marketing, leasing and management of different types of property.

Rationale

Real estate (property) is one of the biggest investments that most individuals would make and represents a substantial share of capital assets in the economy. All businesses involved in managing these assets require graduates with a high level of skills in understanding the economic and financial factors and policies that influence the operation of real estate markets.

Property valuation is one of the most important aspects of the real estate business. There exists a critical shortage of suitably qualified professional property valuers in the country. According to the South African Council for the Property Valuers Profession (SACPVP), the statutory body responsible for the registration of all Valuers, by January 2014, there were only 2219 registered valuers nationally for all the three levels of registration - that is, Candidate Valuers, Professional Associated Valuers and Professional Valuers combined.

These numbers of registered persons fall short of the ever growing demand for professional services in the country. Municipalities, for example, have a dire need to employ professional valuers. The promulgation of the Local Government Municipal Property Rates Act of 2004 requires every municipality in the country to prepare Valuation Rolls for all properties within their boundaries, yet most municipalities do not have qualified valuers. The recent initiative by the Department of Rural Development and Land Reform in setting up the office of the Valuer-General further emphasises the need to widen the professional base of professional valuers in order to help meet the constitutional mandate of this important office concerning valuation of properties for land reform purposes nationally.

The Diploma in Real Estate is well-suited to address the acute shortage of skills and expertise in the area of property valuers and property professionals. Transformation is required in the industry and this qualification will give qualifying learners an opportunity to gain access to a qualification and ultimately the profession.

The qualification is intended to prepare learners for professional training, post-graduate studies and professional practice in real estate. To this end, the graduate will be able to register with the South African Council for the Property Valuers Profession, the Estate Agency Affairs Board and the South African Institute of Estate Agents.

Recognition of Prior Learning (RPL)

In line with the Council on Higher Education and University policies, RPL can be applied to this qualification to grant access, where applicable, to learners who do not meet the entry requirementsto exempt leaners from modules or subjects already passed and/or to grant advance standing to learners.

Entry Requirements

The entry requirement for this qualification is

• Senior Certificate (SC).

Or

• National Senior Certificate (NSC) passed with access to Diploma studies.

Or

• National Certificate Vocational (NCV),Level 4passed with access to Diploma studies.

The qualification consists of compulsory modules at Levels 5 and 6, totalling 360 Credits.

Modules at Level 5, 180 Credits

• Property Economics and Finance 1, 30 Credits.
• Construction Technology, 24 Credits.
• Communication, 18 Credits.
• Business Computer Applications, 18 Credits.
• Property Valuation 1, 30 Credits.
• Property Marketing, 30 Credits.
• Property Law, 30 Credits.

Modules at Level 6, 180 Credits

• Property Valuation 2, 30 Credits.
• Property Economics and Finance 2, 30 Credits.
• Property Valuation 3, 30 Credits.
• Property Economics and Finance 3, 30 Credits.
• Property Management, 30 Credits.
• Property Development, 30 Credits.

1. Apply knowledge of property finance in real estate.
2. Apply knowledge of services related to marketing and leasing of commercial and industrial properties and the management of an estate agency.
3. Demonstrate principles and practices for management of different types of properties.
4. Conduct valuations of all types of property using standard methods of valuation.

Associated Assessment Criteria for Exit Level Outcome 1

• The concepts and structures of urban public finance including revenue and expenditure are identified.
• The different sources and forms of property finance are accurately described.
• The appropriate cost of capital and bases for capital budgeting are identified.
• The nature and scope of real estate investments are identified.
• The influence of tax on real estate is accurately described.
• The investment decision process is correctly described.

Associated Assessment Criteria for Exit Level Outcome 2

• The difference between the various fields of specialisation within commercial and industrial property is identified.
• The leasing of an office block in the central business district of a large town is described in detail.
• The process of costing and expected rental income is correctly described.
• A plan for advertising and canvassing in search of potential tenants or buyers for a commercial/industrial property is presented.
• Appropriate options for managing sales strategically are chosen.
• The most appropriate methods of managing independent contractors and other estate agents are identified.

Associated Assessment Criteria for Exit Level Outcome 3

• Appropriate options and possibilities are considered to obtain suitable tenants.
• A suitable, inclusive checklist for inspecting properties is developed.
• The process of arranging for insurance on properties is explained.
• A system is designed to successfully verify and pay creditors.

Associated Assessment Criteria for Exit Level Outcome 4

• Several valuations are conducted on various properties using discounted cash flow and feasibility study concepts and other valuation methods to compile a valuation report.
• Servitudes are correctly identified and their influence on the value of property is assessed.
• The factors influencing the value of agricultural property are identified.
• The principles of valuation as contained in the Expropriation Act are identified.

Integrated Assessment

Integrated assessment often cuts across a number of modules of a qualification and is aimed at the holistic development of learners and thereby contributes to the learner's personal and professional development in the field of study in terms of foundational, practical and reflexive competences.

Formative assessment is aimed at enhancing learning and provides learners with an opportunity to reflect critically on their own learning and to improve their own levels of personal accountability and time management. Formative assessment usually consists of a variety of assessment tasks such as problem-solving (individual and/or group) assignments and projects, case studies, group/forum online discussions, reports and presentations.

Summative assessment is aimed at assessing the learner's achievement against the learning outcomes of the modules and the qualification. Summative assessments are internally and externally moderated based on institutional policy and requirements. These assessments usually comprise a variety of formal assessment tasks relevant to the field of study, including online tests, reports and online examination.