The new Property Practitioner's Act (PPA) and your property
Category News
An important recent development within the real estate industry is the Property Practitioner's Act of 2019 (PPA) with its regulations which came into effect on the 1st of February 2022.
The Act replaces the old Estate Agency Affairs Act. While it deals mainly with matters relating to estate agents and agencies and how they conduct business including various regulatory requirements, it also brings added protection for consumers.
Some pertinent changes include:
Estate agents are now known as Property Practitioners and Principal Practitioners. Intern agents are Candidate Practitioners and must continue to disclose their status and work under supervision for a prescribed period with restrictions including preparing and signing of documents.
The Property Practitioner's Regulatory Authority (PPRA) replaces the previous Estate Agency Affairs Board (EAAB) and now regulates the industry including compliance and dealing with issues and complaints as prescribed by the Act.
The Act significantly widens the scope of the regulatory body to anyone who sells, or leases property who must now be registered and hold a valid Fidelity Fund Certificate (FFC) to be displayed at their business and presented if asked. Some exclusions apply such as private individuals renting out or selling their own property.
Property Practitioners may now only market properties for which they hold a valid written mandate from the registered owner. All mandates must be in writing with a start and end date. Extensions must also be in writing.
The Act abolishes the practice of accreditation fees and exclusive rights within developments including sectional title and gated estates and sellers and landlords are now free to with a property practitioner of their choice.
The Act also places a focus on the disclosure of defects on properties, whether for sale or to let. A mandatory disclosure of the condition of the property, fully signed, must be attached to all mandate and sale and lease agreements.
A property practitioner who holds a mandate to sell/purchase immovable property must also present all offers received prior to the conclusion of a legally valid contract of sale, unless instructed otherwise by the seller/purchaser.
A property practitioner may also not conclude agreements which obligate consumers to use any specific service providers. Consumers have the right to choose whichever service providers they prefer including banks and conveyancers.
The Seeff Property brand has a proud track record of over five decades as a market leader in real estate. We are fully legally compliant across all spheres of the market. With Seeff you are in good hands. Feel free to contact us to discuss your next property move.
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Author: Gina Meintjes
