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Draft Property Practitioners Regulations on Track

May 8, 2020

Department of Human Settlements

Stakeholders will have more time to comment on Draft Property Practitioners Regulations published for comment in March 2020.

In a statement, the human settlements department indicated that a new date for the submission of comments and a revised information sessions schedule will be communicated once clear directives on COVID-19 are issued, in particular, regulations pertaining to public gatherings.

According to the department, most scheduled public hearings on the proposed regulations were cancelled due to the nationwide lockdown.

The draft regulations flow from the Property Practitioners Act, signed by president Ramaphosa in October 2019.

The Property Practitioners Act seeks to:

• provide for the regulation of property practitioners;
• provide for the continuation of the Estate Agency Affairs Board as the Property Practitioners Regulatory Authority;
• provide for the appointment of the members of the Board and matters incidental thereto;
• provide for the appointment of the Chief Executive Officer and other staff members of the Authority;
• provide for transformation of the property practitioners sector;
• provide for the establishment of the transformation fund and establishment of the research centre on transformation;
• provide for compliance with and enforcement of the provisions of the Act;
• provide for the continuation of the Estate Agents Fidelity Fund as the Property Practitioners Fidelity Fund;
• provide for consumer protection;
• provide for the repeal of the Estate Agency Affairs Act, 1976; and
• provide for matters connected therewith.

The act will come into effect on a date still to be determined by the president.

Issues covered in the draft regulations include manner and form of applying for exemption; manner and form of raising objection to exemption; exemption from trust accounts; transformation; compliance, enforcement and dispute resolution; fees and the fidelity fund; fidelity fund certificates; trust accounts and details of auditor; training, conduct and consumer protection measures and administrative and other matters.