The Property Practitioners Act comes into effect on 1 February 2022.
The presidency published Proclamation 47 in Government Gazette 45735.
President Ramaphosa signed the act 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 Property Practitioners Bill was tabled in 2018 and parliament gave it the green light in March 2019.
According to the bill’s memorandum, the Estate Agency Affairs Act continues to “perpetuate exclusion of some people in other areas, promote weak monitoring of estate agency matters, encourage rampant embezzlement of clients’ funds and fails to provide mechanisms for monitoring the continuous mushrooming of unregistered estate agents, and therefore contributing negatively to the functional property market.”
During its deliberations, the portfolio committee on human settlements introduced a new Chapter 4 to the bill on transformation of property sector and new clauses on lodging of complaints, mediation, adjudication and adjudication appeal committee.
The Property Practitioners Regulations have also been published.
The Regulations were published for comment in Gazette 43073 in March 2020.
The Regulations focus on definitions, application and exemptions; transformation and regularization; 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.