THE PROPERTY PRACTITIONERS ACT – REFORMING THE PROPERTY INDUSTRY

The Property Practitioners Act 22 of 2019 (PPA) will take effect on 1 February 2022.

The main objectives of the PPA are to achieve the following:-

1. To regulate property practitioners by imposing stricter compliance measures;
2. To provide more protection to consumers in the property industry and to promote their interests;
3. To provide transformation within the property industry with strict BEE compliance;
4. To establish the Property Practitioners Regulatory Authority which will replace the Estate Agency Affairs Board and will be tasked with governing all property practitioners. The PPA will replace the Estate Agency Affairs Act No 112 of 1976 (EAA) in its entirety; and
5. To establish the Property Sector Transformation Fund. The Fund will be used by the Authority to provide training and empowerment programmes that will assist historically disadvantaged persons in the property industry.

The PPA requires that each property practitioner, as defined in the Act, is registered in accordance with the Act and obtains a Fidelity Fund Certificate. The PPA sets out strict compliance measures to be followed by property practitioners and imposes severe consequences for non-compliance.

We advise that all practitioners within the property sector take heed of the PPA and obtain legal advice in order to comply with the Act prior to the effective date of the Act and Regulations.